1099 Only Mortgage Connecticut · Licensed in CT · NJ · FL · NMLS #1630225
1099 Only Mortgage Connecticut — Qualify Using 1099 Income, Not Tax Returns
Your accountant’s job is to make the tax return show as little as possible. At a conventional lender that same return is the whole file, which is why 1099 earners get declined on money they genuinely made. This program reads the 1099s instead. Plan on a year or two in the same field, and 20% down at a 600 score.
Last updated September 2026 · reviewed by a licensed mortgage broker
With 20% Down
1099s Instead
Income History
Months of PITI
1099 Mortgages in Connecticut
Why “1099 Only” Exists as Its Own Loan Category
I’ve had this conversation with a lot of Connecticut borrowers: someone calls making $140,000 a year as a contractor, gets denied by their bank, and can’t understand why. The answer is usually the same — their tax return shows a fraction of that number because their accountant did exactly what a good accountant should do. Mileage, home office, equipment, retirement contributions — all legal, all smart, and all invisible to an underwriter who only reads line 31 of your Schedule C.
A 1099 Only Mortgage sidesteps that. Instead of pulling tax returns, the lender pulls your actual 1099-NEC or 1099-MISC forms and qualifies you off what you were paid, not what’s left after deductions. It’s become one of the more common Non-QM requests we get from Connecticut clients. If you’d rather see the full menu of options, our Non-QM overview page covers where 1099-only fits alongside bank statement and asset-based loans.
Requirements
1099 Only Mortgage Connecticut Requirements
These are the benchmarks Connecticut lenders use most often. Every lender has its own overlays, which is exactly why we shop your file to more than one rather than sending it to a single bank.
| Requirement | Typical Range | Notes |
|---|---|---|
| Minimum Credit Score | 600 – 680+ | Some lenders will go to 600 with 20% down and 3 months of reserves in the bank. |
| 1099 History | 1 – 2 Years | Two years in the same line of work is standard. One year can work with a strong pattern and a short letter explaining the timeline. |
| Income Calculation | 75% – 100% of 1099 Gross | Some lenders count the full gross amount. Others apply a 75–90% factor to approximate business expenses without pulling tax returns. |
| Down Payment | 10% – 20% | Higher credit and stronger reserves can bring this closer to 10% on a primary residence. Investment properties run 20–25%. |
| Debt-to-Income (DTI) | Up to 50% | Non-QM guidelines are more forgiving here than conventional loans. See our DTI breakdown for how lenders actually run this math. |
| Cash Reserves | 3 – 12 Months PITI | Liquid savings covering several months of principal, interest, taxes, and insurance. More reserves can offset a thinner credit file. |
| Property Types | Primary, Second, Investment | Works on owner-occupied homes, second homes, and rental property — single-family, condo, or 1–4 units. |
| Loan Amounts | Up to Jumbo Limits | Fairfield County pricing means a lot of our 1099 files run well past conforming limits, and these programs are built to handle that. |
How Your 1099s Turn Into a Qualifying Income Number
This is the part clients ask about most — it decides how much house you qualify for. Every lender has its own formula, and knowing which to use first is a big part of the job.
Who This Program Serves
Who Actually Uses a 1099 Only Mortgage in Connecticut
Connecticut has no shortage of 1099 earners — Fairfield County finance, New Haven healthcare, Hartford insurance. Here’s who I see this program help most.
The Approval Process
How to Apply for a 1099 Only Mortgage in Connecticut
The paperwork here is lighter than a conventional loan — that’s the point. You’ll need your 1099-NEC or 1099-MISC forms from the past one to two years, a couple months of bank statements so the lender can see your 1099 income landing in your account, and a year-to-date P&L if you’re applying mid-year. An appraisal is required either way, purchase or refinance.
As a broker, I send your file to more than one Non-QM lender at once, so you’re comparing real offers instead of taking whatever one underwriter says. The Consumer Financial Protection Bureau recommends shopping multiple loan estimates before committing to anything — that’s essentially the reason to use a broker instead of one branch. Non-QM files also tend to move faster since they skip Fannie Mae’s automated underwriting.
For what the IRS expects from self-employed recordkeeping, their self-employed tax center is a good starting point, and BLS data on independent work shows how common 1099 income has become nationally — Connecticut is right in line with that trend.
Send the last two 1099s and I will run both averages
Before You Start
What Happens After You Apply
- You send the application
A few minutes online. No documents at this stage.
- A licensed loan officer calls you
Someone on our team covering your state.
- We ask for documents and pull credit
Only once you have decided to move forward.
- You get an approval to shop with
Typically back within the hour.
What Clients Say
Real Reviews From Our Clients
Here’s what a few of our clients said about working with Mortgage-World.com.
Frequently Asked Questions
Frequently Asked Questions
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Put your 1099s in front of a Connecticut lender
Two years’ worth of 1099s and a ballpark credit score is all it takes to start. A Connecticut-licensed loan officer will run the one-year and the two-year average, say which one a lender would actually use, and tell you what that supports.
Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author