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Home Loans for Realtors: You Sell Houses. Now Buy One.
The industry's open secret: real estate agents get declined for mortgages constantly — by the very lenders they send clients to. Commission income arrives as a 1099, your write-offs are excellent tax strategy, and conventional underwriting punishes both. The programs that fix it qualify you on your gross commissions or your actual deposits — not the taxable income left after mileage, marketing, and desk fees.
Why agents fail conventional underwriting
You know this file because it's yours: $160,000 in gross commission income, a Schedule C stacked with legitimate deductions, $61,000 in taxable income. Conventional underwriting reads the $61,000, averages your last two years (including that slow first year), and offers a loan that wouldn't buy a listing in your own farm area. You also know the second problem: commission income needs a two-year history before most conventional lenders trust it at all.
The two programs built for your income
- 1099 mortgage — the cleanest fit. Your brokerage's 1099s qualify you at gross, minus a modest expense factor (commonly ~10%). Multiple brokerages combine fine. That $160,000 reads as roughly $12,000/month instead of $5,000.
- Bank statement loan — 12–24 months of deposits become your income. Better when commissions flow through an S-corp or team structure, or when referral fees and side income don't all generate 1099s.
Agent-investors: your rentals qualify themselves
If you practice what you preach and own rentals, DSCR loans qualify on the property's rent alone — your commission volatility never enters the file. Many agents build their portfolio this way precisely because it detaches acquisitions from their personal income story.
What you'll typically need
- History: 1–2 years licensed and producing (some 1099 programs accept 12 months with prior related history)
- Down payment: commonly 10–20%
- Credit: mid-600s and up; pricing improves meaningfully with score
- Your 1099s or bank statements — not your tax returns
The honest part
Alternative documentation prices above conventional — generally one to two points. If your write-offs are light or your two-year average is strong, conventional may still win; a specialist runs both and takes the better number. You'd expect nothing less from a good buyer's agent, and you should expect nothing less from a loan file.
Frequently asked questions
Can real estate agents get a mortgage with heavy write-offs?
Yes — 1099 mortgage programs qualify you on gross commissions minus a ~10% expense factor, and bank statement programs use your actual deposits. Neither reads your tax returns after deductions.
How many years of commission income do I need?
Conventional lenders generally want two. 1099 and bank statement programs often work with 12 months, especially with prior W-2 history in real estate or an established license.
I closed most of my volume through an S-corp/team. Does that change things?
It usually points you to the bank statement route, which reads deposits into your business or personal accounts rather than per-payer 1099s. Both paths work; the stronger file depends on how the money flows.
Can I use a DSCR loan for my own rental purchases?
Yes — DSCR programs qualify the property on its rent, not you on your commissions. Many agent-investors use them to keep acquisitions independent of a variable income year.