Houston’s Self-Employed Borrowers Need a Different Kind of Mortgage

February 27, 2026•2 min read

Houston runs on entrepreneurs.

From energy consultants and medical sales reps to real estate agents, contractors, creatives, and small business owners — this city is powered by people who don’t collect traditional paychecks.

And yet, when it comes to getting a mortgage in Houston, many of those same high-earning professionals hit an unexpected wall.

If you’re paid on a 1099, you’ve probably felt it.

You can live comfortably in Bellaire, the Heights, Katy, Sugar Land, or West U… but your tax return makes it look like you’re barely scraping by.

That disconnect is exactly why 1099 loan programs exist.

The Problem Houston Self-Employed Borrowers Run Into

Houston has one of the largest self-employed and commission-based workforces in Texas. Energy brokers, independent adjusters, consultants, medical specialists, marketing professionals — the list goes on.

Many of them earn strong, consistent income.

But here’s the catch:
Texas business owners are smart about deductions.

Your CPA helps you write off legitimate expenses.
Your tax return reflects net income after those deductions.
Traditional mortgage guidelines look at that net income and say… “That’s it?”

Not exactly helpful.

What a 1099 Loan Does Differently

A 1099 loan is built specifically for borrowers whose income doesn’t show up neatly on a W-2.

Instead of focusing strictly on net taxable income, this type of mortgage looks at:

What clients actually paid you
Documented 1099 income
Consistency of deposits
Reasonable annualization of earnings

The goal isn’t to stretch numbers. It’s to evaluate them in context.

For many Houston professionals — especially those in commission-heavy or contract-driven industries — this approach reflects financial reality far more accurately than traditional underwriting alone.

Who in Houston Typically Benefits

1099 loans are often a fit for:

Independent energy consultants
Real estate professionals
Medical sales and device reps
Commission-based sales executives
Small business owners
Contractors and skilled trades professionals

In a market like Houston — where income can be strong but structured differently — having a loan program that understands variable and contract-based pay can make a meaningful difference.

Why Local Experience Matters

Houston is not a one-size-fits-all housing market.

Property taxes are higher than many other states.
Flood zones and insurance considerations vary by neighborhood.
Income trends can be industry-driven — especially in oil & gas and healthcare.

Because of that, navigating a 1099 loan here isn’t just about understanding self-employment income. It’s also about understanding Houston.

That’s why many local borrowers choose to work with Rich Bonn at Habayit Home Loans.

The focus is on:

Reviewing income before problems arise
Explaining how underwriting will interpret it
Setting realistic expectations
Structuring files cleanly and clearly

For self-employed Houstonians, that preparation often means fewer surprises — and a smoother path to closing.

When your income doesn’t fit into a traditional box, working with someone who regularly helps Houston-based 1099 earners can make the process feel far more straightforward.