1 Year Income Qualification
1-Year Income Qualification Loan Program The 1-Year Income Qualification Loan Program is designed for borrowers who have at least one year of documented income and may not qualify under traditional lending guidelines that require two years of history. This program is ideal for self-employed individuals, 1099 earners, business owners, and borrowers with recent career changes. Instead of requiring two years of tax returns, lenders evaluate 12 months of income documentation to determine eligibility.
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Who Is This Program For? This program may be a good fit if you: Are self-employed or a business owner with one year of income. Work as a 1099 contractor. Recently changed industries or became self-employed. Have consistent income for the past 12 monthsHave strong credit and financial stability.
Key Benefits
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Only one year of income history required. More flexible underwriting than conventional loans. Available for primary residences, second homes, and some investment properties. Can be used for purchase or refinance. Ideal for borrowers early in their self-employment or new career
What to Expect
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1-Year Income Qualification loans may have: Different interest rates and terms than conventional loans\. Higher down payment requirements. Additional documentation to verify income stability. These programs are designed to help borrowers qualify sooner without waiting two full years
Acceptable Income
Documentation Depending on the lender and program, income may be verified using:
12 months of bank statements.
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1 year of tax returns1099 forms.
Profit & Loss statements (CPA-prepared preferred).
Business license and proof of ownership
