Question 1

Can I qualify with just one year of 1099 income?

Accepted Answer

Some lenders accept one year if your income is strong and your field is stable. Two years is safer and opens more options.

Question 2

Do lenders use my gross or net 1099 income?

Accepted Answer

Most 1099 loan programs use gross income from your forms. That's the main advantage over conventional loans.

Question 3

What credit score do I need for a 1099 loan in Santa Barbara?

Accepted Answer

Most lenders want 620 or higher. A stronger score improves your rate. Rates vary by borrower profile and market conditions.

Question 4

How much do I need for a down payment?

Accepted Answer

Expect 10% minimum on most non-QM 1099 programs. Higher down payments can offset weaker credit or income history.

Question 5

Is a 1099 loan considered a non-QM loan?

Accepted Answer

Yes. It falls outside conventional agency guidelines. That's not a red flag — it just means different lenders handle it.

Question 6

How is a 1099 loan different from a bank statement loan?

Accepted Answer

A 1099 loan uses your income forms directly. Bank statement loans calculate income from deposits — better when deductions are heavy.

1099 Loans in Santa Barbara for Independent Earners