1099 earnings VS. W2 earnings

[Luiny Tavares]

Hello, Bigger Pockets Family,

I am a new investor, and I'm trying to get pre-qualified for a mortgage, preferably FHA cause those have the lowest down payments, and also tend to have a lower interest rate, and cash on cash return is important in my investment strategy.

I am a contract employee so I receive a 1099 instead of a W2, the bank I went to Provident Bank,  will only lend to me based on the amount I paid taxes on, from my 1099, and I try to pay as little taxes as possible, just like Donald Trump. so my Pre-qualification is pretty low for investing in New Jersey where I live.

 Are there Financial institutions that are friendlier to lending to folks with 1099's?

Please help, I want bags of cash, to help me with my investing.

[Brian Garrett]

Unfortunately as far as the conventional route goes that's the way it is. 

They can only base your income qualification off what you show on paper.

I'd suggest meeting with some other small local banks and credit unions to see their options.

I'd also suggest that you look into commercial loan programs which have more flexibility.