Energy Day-Rate Income Always Needs Twenty-Four Months
If your income comes from the SCOOP, STACK, or Anadarko basin work as a day-rate contractor, an independent landman, a service company principal, or anyone whose earnings track rig activity this section is the most important one on the page.
Do not run a twelve-month program. Ever.
Oklahoma energy income moves with commodity prices, and commodity prices move on a cycle that has nothing to do with your capability as a borrower. A twelve-month lookback that lands in a strong stretch overstates you and invites a condition. One that lands in a soft stretch understates you badly enough to cost you the property.
The twenty-four month average smooths the cycle and, just as importantly, gives an underwriter two comparable periods to look at. Underwriters unfamiliar with energy income read volatility as instability. Underwriters who have seen it read it as normal.
Also identify your contract structure at the outset, because energy earners are paid in several different ways and they document differently:
- Day-rate 1099 the cleanest fit for a 1099 program
- S-corp K-1 distributions not 1099 income; likely needs a bank statement or P&L program
- Royalty income documents separately and is treated differently by different investors
- Independent landman usually 1099, often across multiple operators
Sort out which one you are before you choose a product, and bring a short written explanation of your work cycle with the file rather than answering a condition about it later.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans across Oklahoma. Underwriter familiarity with energy income varies enormously between wholesale investors which is precisely the situation a broker resolves, by putting your file in front of the shelf that has seen day-rate income before.
We quote DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
Brokers First Funding A wholesale Non-QM lender holding both the Oklahoma Mortgage Lender License and Lender Name Registration from the Oklahoma Department of Consumer Credit. Publishes Oklahoma-specific program guidance including explicit 24-month discipline on SCOOP and STACK day-rate income, Hochatown short-term rental verification, and Tinker AFB and Fort Sill housing-allowance DSCR. Broker channel.
Capital Home Mortgage Oklahoma Oklahoma operations across 1099, bank statement, asset, and DSCR programs, with a local Oklahoma City line.
Newpoint Mortgage A Non-QM lender covering Oklahoma alongside the surrounding region, with DSCR, mixed-use, and closed-end DSCR second mortgage programs.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Griffin Funding Publishes qualifying on 90 to 100 percent of gross 1099 income, 620 minimum credit, and loan amounts to $4 million.
NASB (North American Savings Bank) Among the longest-running alternative documentation programs in the country, with a 1099-NEC based option.
Oklahoma’s local Non-QM bench is thin, and most volume here is written by national lenders. Verify current licensure before relying on any listing see the disclaimer at the end of this page.
How Qualifying Works
A 1099 loan qualifies you on income documented on your 1099 forms rather than the net profit shown after deductions. Appraisal, assets, credit, reserves, and ability-to-repay analysis all work normally.
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Day-rate contractors and owner-operators carry heavy documented expense equipment, fuel, travel, insurance. That means a tax return understates them badly, and a bank statement program applying a 50 percent expense factor understates them a second time for the same costs. A gross-receipts 1099 program is frequently the only product that reflects what they actually earn.
Model the payment with our mortgage calculators.
Oklahoma’s 1099 Population
Energy contractors and independent landmen across the SCOOP, STACK, and Anadarko plays the profile discussed above.
Aviation maintenance contractors around Tulsa’s substantial aircraft maintenance and overhaul operations, a specialized and well-paid contract workforce.
Owner-operator trucking along the I-35 and I-40 corridors.
Construction and specialty trades across both metros, with meaningful storm-restoration demand.
Healthcare contracting around the Oklahoma City and Tulsa medical centers.
Oklahoma Investment Markets
Oklahoma City carries the largest share of investor inventory with a diversified employment base state government, energy, healthcare, aviation and steady rental demand.
Tulsa offers strong yields and has actively recruited remote workers, which has supported rental demand. Note that relocation grant income is generally not qualifying income; if you received one, do not count it in your figures.
Norman and Stillwater support university rental demand with predictable cycles.
Broken Bow and the Hochatown area is one of the more significant cabin short-term rental markets in the region, drawing heavily from Dallas–Fort Worth. Short-term rental permissibility there requires specific verification — it is not uniform across the area, and a listing advertising established nightly income conveys nothing about whether that use is permitted going forward.
Military markets Tinker Air Force Base near Midwest City and Fort Sill near Lawton support durable rental demand from housing-allowance tenants, which underwrites cleanly.
Rural counties are where loan minimums bind. A meaningful share of inventory prices below common Non-QM floors of roughly $75,000 to $150,000.
Other Oklahoma Specifics
Non-judicial foreclosure by power of sale is available in Oklahoma, which is comparatively favorable for investors and supports better LTVs than judicial states.
Tornado, hail, and wind. Oklahoma sits in the most active severe-weather corridor in the country. Roof age and claims history drive insurability and premium harder here than almost anywhere, and because premiums sit inside your qualification math, an insurance surprise directly reduces what you can borrow. Get a real binder on the specific property before you finalize price this is not optional diligence in Oklahoma.
Property taxes are comparatively low, which helps both DTI capacity and DSCR ratios, partially offsetting the insurance burden.
Tribal jurisdiction considerations exist in parts of the state and can affect title and, occasionally, remedies. Use a closing attorney or title company that works in the relevant county routinely.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: 620 floor at most investors; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA, often with additional reserves per financed property already owned
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
Oklahoma is a strong DSCR state. Low property taxes and moderate acquisition prices produce ratios that clear comfortably in both metros provided the insurance quote cooperates.
Use DSCR on a conventional long-term rental with documented lease history that clears the lender’s minimum, particularly in the military-adjacent markets where demand is durable.
Use a 1099 loan where a hail-loaded insurance premium has pushed the ratio below floor, where the property is below the loan minimum, where it is a Hochatown-style seasonal cabin whose annualized rent gets discounted, or where the property needs work before it rents.
If you already hold Oklahoma rentals, a DSCR refinance works where the ratio supports it.
Questions to Ask
- My income is energy day-rate will you run 24 months, and have your underwriters seen this before? (Ask this first.)
- Do you qualify on gross 1099 income, or apply an expense factor?
- What does the actual insurance quote do to the DSCR, given the roof age?
- What is your minimum loan amount? (Ask this outside OKC and Tulsa.)
- How do you treat seasonal cabin rent in the Broken Bow area?
- Can you quote DSCR on the same property?
More from Select Home Loans: DSCR loans · DSCR refinance · Learning Center · About Select
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in Oklahoma, currently offers the program described, or will approve your file.
Short-term rental permissibility, insurance availability, and title considerations vary by property and jurisdiction; verify them independently and consult an Oklahoma attorney where title or jurisdictional questions arise. Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure through NMLS Consumer Access at nmlsconsumeraccess.org.
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