Can you get a mortgage on 1099 income as an NP, PA or CRNA? Yes, but lenders usually treat 1099 contract income as self-employment, which means they want tax returns, not pay stubs, and they qualify you on what's left after expenses. Most want two years of history. One year can work if you did the same kind of work as a W-2 employee before.

That catches a lot of advanced practice providers off guard. Contract work often pays better per hour than a staff position, and locums can pay a lot better. But the write-offs that lower your tax bill also lower the income a lender can count, and a switch from W-2 to 1099 in the middle of a home search can push a purchase back a year. Knowing the rules before you sign a contract, or before you file your taxes, makes all the difference.

How do lenders count 1099 income for a mortgage?

From your tax return. For a 1099 contractor, income usually lands on Schedule C, and the lender starts with your net profit, not the gross on your 1099s. Fannie Mae's self-employed guidelines generally call for two years of signed personal returns and a cash-flow analysis. Most business expenses come straight off the top.

An illustration with round numbers: a CRNA billing $260,000 in 1099 income who deducts $40,000 in expenses would usually be qualified on about $220,000, averaged over two years if both years are available. If last year was much lower than this year, the lender may use the average or the lower year. Some non-cash deductions, like depreciation or home-office expenses that don't cost you cash each month, can be added back to that figure, which is why the lender's number and your tax preparer's number don't always match.

Is one year of 1099 income enough?

Sometimes. Fannie Mae allows less than two years of self-employment when your most recent return shows a full 12 months of income from the current work and you earned the same or more in the same or a similar field before. Freddie Mac updated its rules in November 2024 to allow a combined two-year history of the new self-employment plus a prior job in the same field, qualifying you on the lower of the two incomes. A nurse practitioner who moves from a hospital W-2 to contract work as an NP is the textbook case.

Less than a full year usually doesn't work for a conventional loan.

Freddie Mac also added an option in late 2022 that lets lenders treat 1099 income more like wages when the Schedule C shows very low expenses, about 5% of gross or less, with no cost of goods sold, according to a lender bulletin summarizing the change. Not every lender uses it, so ask.

What if you're mid-switch from W-2 to 1099?

Timing matters more than anything else here. If you can, buy while you're still on W-2, or wait until you've filed a full year of contract income.

Locum tenens work can be either: some agencies pay locums as W-2 employees and others pay 1099, so check your agreement. If the conventional rules don't fit yet, some lenders offer bank-statement or 1099-only loans that skip the tax returns, usually at a higher rate. A few professional loan programs also accept CRNAs, PAs or NPs, though most are written for physicians.

Before you file your taxes

Talk to your CPA and your lender together if you're planning to buy in the next year or two. Every deduction is a trade between a lower tax bill and a lower qualifying income, and there may be choices worth making differently in a buying year. Then run the numbers on the mortgage calculator. For W-2 nurses changing jobs, read how lenders count overtime and differentials, and if you're moving here for a new position, see how I help medical professionals relocate.

Frequently asked questions

Can a nurse practitioner get a mortgage with 1099 income? Yes. Lenders usually treat 1099 contract income as self-employment and qualify you on net income from your tax returns, generally with a two-year history.

Can I get a mortgage with one year of 1099 income? Sometimes. Fannie Mae and Freddie Mac allow less than two years of self-employment if you have a full year in the current work and a prior history in the same or a similar field. Less than a full year usually doesn't qualify for a conventional loan.

Do write-offs lower my mortgage qualifying income? Yes. Lenders generally use net profit after business expenses, though some non-cash deductions like depreciation can be added back.

Are locum tenens physicians W-2 or 1099 for a mortgage? It depends on the agency. Some pay locums as W-2 employees and others pay 1099. Check your agreement, since lenders document each type differently.

What if I don't have two years of 1099 history? Options include buying before switching from W-2, waiting for a full year of returns, or a bank-statement or 1099-only loan, which usually carries a higher rate.

This article is general information, not tax, legal or lending advice. Guidelines change and lenders add their own rules. Talk with your CPA and lender about your situation.

Last updated November 2026