Can I use 1099 income for a conventional loan?
Yes, but 1099 contractor income is treated as self-employment. Two years of personal returns plus year-to-date documentation are typically required. Pure 1099 with under two years of history usually doesn't qualify on standard conforming conventional.
What this actually means.
If you receive 1099 income, the lender treats you as self-employed regardless of whether you operate as a sole proprietor, LLC, or S-Corp. Documentation: two years of personal returns showing the 1099 income on Schedule C (or via the business return for an entity), plus year-to-date P&L for current year tracking. Bank-statement loans serve 1099 borrowers who don't qualify on tax-return-based income. Subject to Fannie/Freddie guidelines.
Where this can move.
Documentation type, employment stability, year-over-year trends, and any recent job/business changes can change the answer.
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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.