Driving, delivering or shopping through an app: buying a first South Carolina home on gig income

The apps South Carolinians use, and what they have in common

Across the state, people earn through rideshare apps such as Uber and Lyft, delivery apps such as DoorDash and Amazon Flex, and grocery shopping apps such as Instacart and Shipt. These companies have no connection to any homebuyer program; we name them only so you can recognize your own situation.

What they share, for mortgage purposes, is that you are almost always treated as running your own small business. You receive a 1099-NEC, a 1099-K or both, and you report the income and expenses on Schedule C.

Why a lender's number is smaller than your app total

A lender qualifies you on Schedule C net profit, not on what the apps deposited. For drivers, the largest expense is usually mileage. The IRS business standard mileage rate for 2026 is 72.5 cents a mile.

Because income rose, a lender would typically average the two years: $29,500 a year, or about $2,458 a month. That figure, not $46,000, is what goes into your debt-to-income ratio, which SC Housing caps at 45%.

The depreciation piece of mileage

Part of the standard mileage rate is treated as depreciation: 33 cents a mile for 2025 and 35 cents for 2026, per IRS Notice 2026-10. Depreciation is normally added back for self-employed borrowers. However, none of the FHA, Fannie Mae or Freddie Mac guide text we reviewed says whether the depreciation portion of the mileage rate may be added back. Some lenders do it. Please ask yours to confirm in writing before relying on it.

The seasonal question in South Carolina

Gig income in coastal South Carolina often rises in summer and falls in winter, following the tourist season in Myrtle Beach, Charleston and Hilton Head. Upstate and Midlands earnings may follow college calendars and holidays instead. Lenders look at annual totals on your returns, which smooths much of this out. Still, two points deserve care:

• When you have more than one source of work, Fannie Mae does not allow a gap of more than one month in the last 12 months unless the work is seasonal.
• How lenders treat seasonal gig income specifically is not set out in the agency rules we reviewed, so your lender confirms.

A year-to-date profit and loss statement that shows your typical winter months can answer questions before they are asked.

How much history you need

When gig work is your main job

You are underwritten as self-employed. Plan on two years on your filed tax returns. FHA accepts one to two years only with a prior two-year history in related work. Fannie Mae and Freddie Mac want at least a full year on your returns plus earlier similar work. Freddie Mac also requires every 1099 for two years, and never less than 12 months.

When gig work is a second job

Consider a Charleston County EMT who drives on days off. The EMT salary qualifies on its own. The driving income helps only once it has history: FHA wants two uninterrupted years for part-time income, Fannie Mae recommends two years and accepts 12 months with offsetting factors, and Freddie Mac allows 12 months or more when justified. When a Palmetto Heroes round is open, the EMT's eligibility comes from the emergency services job, not the app.

The 1099-K and several apps at once

Many South Carolina gig workers switch among two or three apps in a week. That is no obstacle. Lenders add all of them together. None of the agency guides names a platform or the 1099-K form, so how a lender handles a 1099-K that includes amounts you never kept, such as pass-through fees, is a question for your lender. Freddie Mac treats 1099 income as ordinary employment only when expenses are under 5% of gross and other tests are met. Drivers almost never meet that test, so expect the self-employed rules.

Programs that fit gig workers

• SC Housing Homebuyer Program: $10,000 in forgivable assistance, a 640 credit score, county income limits and a $450,000 price limit.
• County First Initiative: in 31 rural and coastal counties, including Horry and Beaufort, for first-time and move-up buyers.
• Palmetto Home Advantage: no first-time rule and no price limit, with a $140,000 income cap.
• Local programs such as Richland County's RCHAP, Columbia's City Lender I and Greenville County's program, each with its own income and price caps.

Compare them on the down payment assistance page.

What to gather

1. Two years of signed federal returns with Schedule C.
2. Every 1099 from every app for both years.
3. Each platform's annual earnings summary.
4. A mileage log that matches your return.
5. Bank statements showing deposits that line up with your earnings.

When your papers are together, please check your eligibility to reach a lender comfortable with 1099 income.

Further questions