Start with the monthly income your lender can use
Your 1099 shows what a payer reported paying you. For a conventional loan, a lender reviewing self-employment income generally analyzes your tax returns, adjusts business cash flow under program rules, and checks whether the income is stable and likely to continue. The qualifying monthly figure can differ substantially from your gross receipts.
Some alternative programs review 1099 earnings directly and may ask for records of current-year earnings. Ask how many years of records the program requires and how the lender handles business expenses, multiple payers, and a recent change in contracts before comparing offers.
Turn that figure into a housing payment estimate
Suppose your 1099s total $120,000 for the year and a lender's separate income review supports $7,000 per month. To see the effect of that income figure, assume a 40% total debt-to-income ratio for planning. That gives you $2,800 per month for qualifying housing costs and other counted debts. If those other debts total $500, the illustrative housing allowance is $2,300 per month.
That $2,300 needs to cover principal and interest, property taxes, homeowners insurance, and any applicable mortgage insurance or HOA dues. Once you estimate those costs and choose a down payment, rate, and term, you can translate the payment into a purchase price. A condo with higher dues can support a different price than a house with the same down payment. The 40% assumption is for illustration. Actual underwriting and your household budget can support different payments.
Get the income estimate before shopping at your maximum
Gather recent returns with schedules, 1099s by payer, and current-year earnings records. If a major contract recently started or ended, explain how that affects future income. Ask for the monthly figure the lender expects to use and whether it has reviewed the actual documentation. Then use the mortgage calculator to test a payment, or read the 1099 income loan guide and bank statement vs. conventional comparison.