New to 1099? Start with a closer look.

A specific path for new medical contractors

Doctor Loan Silver provides a contract-income path for eligible medical professionals with less than 12 months of contractor earnings and no such earnings on their most recent tax return. It may use documented minimum guaranteed pay when all program conditions are met. This does not waive underwriting or create a general exception for every self-employed borrower.

What the contract must establish

• A fully executed agreement identifying the compensation rate and enough minimum work, hours, assignments or production to calculate expected income.
• Support for the minimum income expected during the first 12 months of work.
• Confirmation from the contract or contracting entity that the borrower is not responsible for business expenses required to perform the contracted duties under Silver. Expense rules must be checked separately for any other program.
• If work has not started, a start date within 60 days of closing, required employment verification and enough eligible reserves to cover the gap.

Prior tax returns can change the path

FCM/AMB’s current guidelines direct borrowers with 1099 income filed on the prior year’s returns to standard self-employment review. Its contract path addresses unreimbursed expenses necessary to perform the work; the current guide treats ordinary professional costs separately. A letter cannot erase business expenses shown on tax returns. Silver has its own requirements, so the two paths should not be treated as interchangeable.

Teal and Pink have their own contract paths

Teal’s new-contractor path also requires less than 12 months of earnings and no such earnings on the most recent return. Pink includes a conditional route when a partial year of 1099 income was already reported: the returns must be reviewed, income is calculated for the reported period and it must support the contract. Teal and Pink distinguish unreimbursed expenses required to perform the work from ordinary professional expenses such as licensing and continuing education.

Established self-employment is a separate review

Silver requires two years of personal and applicable business returns, with at least 12 months of self-employment reported. Teal and Pink have minimum-one-year provisions subject to applicable Fannie Mae requirements and at least 12 months reported; they do not promise that one return is enough for every borrower. Current income, cash flow and additional documentation still matter.

Variable or declining income needs a closer review

A headline hourly rate is not the same as guaranteed qualifying income. Uncertain assignments, practice expenses or declining earnings may change the calculation or require another loan option. Silver requires support for a decline and evidence of stability; it uses the most recent 12 months or the period of decline when applicable.

Start with a secure contract review

Tell Sasha your profession, when the contract begins, how you are paid and whether you have already filed taxes for this work. She can compare physician financing with conventional, jumbo or other appropriate options. Send contracts, tax returns and statements only through the secure channel provided by your loan team.