If you live and work in Connecticut on 1099 pay, you have more than one way to document income for a home loan. Some contractors qualify from tax returns without trouble; others do better with a program that reads their 1099 forms directly. Programs vary by borrower, property and investor, so pricing a 1099 scenario next to a returns-based scenario for your Connecticut purchase or refinance is a sensible first step. Bring every 1099 you received so nothing is left out of the count.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
Lenders often confirm that your business is active. In Connecticut, business entity records are searchable through the Connecticut Secretary of the State. If a CPA prepares your expense letter or P&L, the lender may check the license with the Connecticut Department of Consumer Protection.
Where the numbers point in Connecticut
Counties with the most self-employed workers:
| County | Self-employed workers |
|---|---|
| the Western Connecticut Planning Region | 44,903 |
| the Capitol Planning Region | 40,186 |
| the South Central Connecticut Planning Region | 23,305 |
| the Naugatuck Valley Planning Region | 22,204 |
| the Greater Bridgeport Planning Region | 18,766 |
| the Southeastern Connecticut Planning Region | 10,166 |
| the Lower Connecticut River Valley Planning Region | 10,003 |
| the Northwest Hills Planning Region | 8,232 |
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Prefer to talk first? Call (888) 508-8976. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.
Local pages in Connecticut
- Bank statement loans in Bridgeport
- Bank statement loans in Hartford
- Bank statement loans in New Haven
- Bank statement loans in Norwich
- Bank statement loans in Waterbury
- Bank statement loans in Danbury
- Bank statement loans in Stamford
- Bank statement loans in Norwalk
- Bank statement loans in New Britain
- Bank statement loans in Bristol
- Bank statement loans in Meriden
- Bank statement loans in West Haven
- Bank statement loans in Milford
- Bank statement loans in Milford city
- Bank statement loans in Middletown
- Bank statement loans in Shelton
- Bank statement loans in Torrington
- Bank statement loans in Naugatuck
- Bank statement loans in New London
- Bank statement loans in Ansonia
- Bank statement loans in Wallingford Center
- Bank statement loans in Willimantic
- Bank statement loans in Storrs
- Bank statement loans in Derby
- Bank statement loans in Conning Towers Nautilus Park
- Bank statement loans in Jewett City
- Bank statement loans in Oakville
- Bank statement loans in Thompsonville
- Bank statement loans in Riverside
- Bank statement loans in Kensington
Common questions
Can I switch from a 1099 loan to a conventional loan later?
Possibly. If your future returns show enough net income to qualify under agency guidelines, a refinance into a conventional loan may be an option. Whether it makes sense depends on rates, costs, any prepayment terms on the original loan and your home's value at the time. Ask about prepayment terms before you close so you know how flexible the loan will be.
Do I need my tax returns for a 1099 mortgage?
Many 1099 programs do not use your full returns as the income source, but lenders commonly ask you to sign an IRS transcript request so they can confirm the 1099s match what was filed. If the figures do not line up, expect questions. Make sure your forms and filings agree before applying, and talk to a tax professional about any discrepancy.
Is a 1099 employee treated differently than a W-2 employee?
Yes. A W-2 employee's wages are verified through pay stubs, W-2s and the employer. A 1099 worker is treated as running a business, so lenders look at business income rather than wages. That usually means either tax returns or a 1099 program instead of a simple employment verification, and lenders pay closer attention to how steady your clients and payments are.
Other non-QM options in Connecticut
Bank statement loansNon-QM lendersSelf-employedP&L loansAsset depletionNo-doc / stated incomeNew self-employedITIN loansForeign nationalNon-warrantable condoBank statement HELOCInterest-only
Related guides
- 1099 vs. W-2 Income: How Mortgage Lenders See the Difference
- How to Get a Mortgage When You Are Self-Employed
- How Tax Write-Offs Affect Your Mortgage Qualifying Income
1099 Mortgage Loans overview · Connecticut non-QM overview
- Census ACS 2020-2024, table B24080