Question 1

Can I apply for both and choose the better outcome?

Accepted Answer

Yes. We often run both scenarios for Santa Barbara clients. The better qualifying income determines which path we take.

Question 2

Do 1099 loans require a specific industry or job type?

Accepted Answer

No specific industry is required. You need documented 1099 income from one or more clients over the past one to two years.

Question 3

What expense ratio do lenders use for bank statement loans?

Accepted Answer

It varies by lender — common ratios range from 50% to 90% of deposits. We shop across 200+ wholesale lenders to find the most favorable calculation.

Question 4

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM loans with flexible credit standards. Minimum scores vary by lender. Rates vary by borrower profile and market conditions.

Question 5

Can I use personal bank statements instead of business ones?

Accepted Answer

Yes. Many lenders accept personal statements. Business statements may produce a higher qualifying income depending on your deposit patterns.

Question 6

Are these loans available for Santa Barbara condos or multi-unit properties?

Accepted Answer

Both loan types can work on condos, single-family homes, and investment properties. Property type affects lender availability and terms.

1099 Loans vs Bank Statement Loans in Santa Barbara