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.
Plain-English explanation
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.
What can change the answer?
Documentation type, employment stability, year-over-year trends, and any recent job/business changes can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.