Can I get a no‑money‑down loan in Texas as a 1099 contractor?

Texas no‑doc loans typically require credit scores of 640‑680+, down payments of 10‑25% depending on loan type and purpose, and interest rates that run 0.5‑2% higher than conventional mortgages (trussfinancialgroup.com).

Understand Texas loan rules

The Texas Regulatory Loan Act (SB 15) authorizes the Office of Regulatory Loan Commissioner to license and regulate lenders of consumer loans up to $1,500 (texas.gov).

In Texas, credit service organizations are governed by Chapter 393 of the Finance Code and the related Texas Administrative Code Chapter 74 rules (tx.us).

• Ask the lender to confirm which state licensing requirements apply to the loan.

• Write down the Texas Finance Code chapter that covers credit service organizations.

Review 1099 Business Loan Pricing & Rates: 2026 Cost Comparison Guide while preparing questions for the lender.

Explore 1099‑only mortgage options

A 1099‑only mortgage in Texas lets independent contractors qualify using one or two years of 1099 income with a flat expense factor of typically 10–20% instead of tax returns (styermortgage.com).

In Texas, a 1099‑only mortgage qualifies you on roughly 90% of your gross 1099 income over the last 12 or 24 months, with rates 0.50‑1.50% higher than the wholesale conventional rate and down payments of 10‑20% depending on credit and loan size (onpointmortgagepro.com).

P&L and 1099 loans in Texas allow self‑employed borrowers to qualify without tax returns by using a profit‑and‑loss statement or 1099 forms, often supplemented by a few months of bank statements (yourmortgagebrokermike.com).

• Request a list of required income documentation (e.g., 1099 forms, profit‑and‑loss statements, bank statements).

• Note the typical income qualification percentage and any extra credit‑score adjustments.

Review api-docs while preparing questions for the lender.

Check no‑doc and low‑down‑payment products

• Ask the lender to specify the minimum credit score and down‑payment range for a no‑doc loan.

• Record the interest‑rate premium that may apply compared with conventional mortgages.

Prepare verifiable income records

A bank‑statement mortgage is a Non‑QM product that lets self‑employed buyers qualify using 12 or 24 months of bank deposits instead of tax returns and is not insured by FHA, HUD, VA, or any government agency (texasfha.org).

• Gather 12‑month bank‑statement PDFs and highlight regular deposits that match your 1099 income.

• Create a simple profit‑and‑loss sheet that totals revenue and expenses for the most recent 12‑month period.

Disclosures

This content is for educational purposes only and is not financial advice. 1099loans.com may receive compensation from partner lenders, which may influence which products are featured.

Sources

• trussfinancialgroup.com
• texas.gov
• tx.us
• styermortgage.com
• onpointmortgagepro.com
• yourmortgagebrokermike.com
• texasfha.org