Yes, we can use both together, as long as each income source has enough history to count. The general expectation is a two-year history for the 1099 side. Lenders want to see that a side gig is durable, and that it was not picked up right before applying to inflate qualifying income and then dropped after closing. How each piece gets counted: - W-2 base income counts at face value. - 1099 income gets netted from your tax returns, usually your Schedule C. Contractor income almost always has business expenses written off against it, so only the net figure counts, which surprises people who assume we use the gross deposits. - Variable income like overtime, bonus, and commission is averaged, generally over two years. Fannie Mae will consider as little as a 12-month history when other strengths of the file reasonably offset the shorter track record, and a declining trend gets extra scrutiny. So if you earn heavy overtime now but do not plan to keep that pace, your qualifying income can look meaningfully lower than your current pay stub suggests. If you want to see how your specific mix of W-2 and 1099 income pencils out, that is exactly what we map in the free Roadmap conversation, about 20 minutes, where we run your real numbers.