Can I use 1099 income for a conventional loan?
Yes. Independent-contractor income reported on a 1099 can qualify, usually under self-employment rules. The 1099 amount alone does not establish usable income.
What this actually means.
A 1099 is a tax form, not one income type: contractors, retirees and investors can receive different 1099 forms. For contractor work, the lender reviews business expenses, tax records and income history. Fannie Mae has a path for some borrowers with less than two years in business when a full tax-return year and related prior earnings meet its requirements.
A simple example
Illustration only. This is not an approval or a loan offer.
Where this can move.
Type of 1099, business ownership, expenses, filed returns, prior work and income history, and program requirements.
Check the sources
- Fannie Mae: self-employment history and documents
- Fannie Mae: pension and retirement payments
- Fannie Mae: business profit and allowed adjustments
Sources checked . Program guidance and lender requirements can change.
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More conventional questions on Income.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.