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Goleta sits next to Santa Barbara and UCSB — a market full of consultants, researchers, and tech contractors who earn 1099 income.
Traditional lenders reject these borrowers constantly. A 1099 loan uses your contract income directly, not a tax return that's been written down.
680 (typical)
Min Credit Score
1-2 Yrs of 1099s
Income Docs
10-20%
Down Payment
Non-QM
Loan Type
2 Years Preferred
Income History
1099 Loans in Goleta
Lenders typically want 1-2 years of 1099s showing consistent income. A 680+ credit score and 10-20% down payment are common starting points.
Self-employment doesn't disqualify you. Lenders look at your gross 1099 earnings — not what's left after deductions on Schedule C.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Goleta.
Goleta sits next to Santa Barbara and UCSB — a market full of consultants, researchers, and tech contractors who earn 1099 income.
Traditional lenders reject these borrowers constantly. A 1099 loan uses your contract income directly, not a tax return that's been written down.
Lenders typically want 1-2 years of 1099s showing consistent income. A 680+ credit score and 10-20% down payment are common starting points.
Most banks won't touch 1099 borrowers. These loans live in the non-QM (non-qualified mortgage) space — specialty lenders who price for contractor income.
Rate premiums over conventional loans are real. Shopping across 200+ wholesale lenders matters here more than almost any other loan type.
The biggest mistake 1099 borrowers make: filing taxes aggressively, then wondering why lenders say no. Your write-offs work against you on paper.
Keep two years of 1099s organized. Lenders want to see income stability. One big year and one weak year raises flags.
Bank Statement Loans let you use 12-24 months of deposits instead of 1099s. If you run business expenses through a separate account, that may work better.
Profit & Loss Statement Loans are another option. Your CPA prepares a P&L — no 1099s or bank statements needed in some cases.
Goleta home prices are high. You'll likely need a loan above $832,750 — which is the conforming limit for Santa Barbara County as of April 2026.
Jumbo non-QM combinations exist for 1099 earners buying above that threshold. Fewer lenders offer them, and reserve requirements are stricter.
Yes. Non-QM lenders accept 1-2 years of 1099s as primary income documentation. You won't need full tax returns in most cases.
On 1099 loans, lenders use gross 1099 earnings — not Schedule C net income. Your write-offs don't reduce what you qualify for.
Most non-QM lenders want 680 or higher. Scores below that may still qualify but expect higher rates.
Yes. Non-QM loans carry a rate premium. Rates vary by borrower profile and market conditions — shopping lenders is critical.
Lenders want to see consistency. One weak year can hurt your file. A broker can find lenders that average both years or use the stronger one.
Expect 10-20% down for most 1099 loans. Larger down payments can offset weaker credit or income documentation.