Loading
in Santa Barbara, CA
Santa Barbara has no shortage of self-employed buyers. Consultants, contractors, and business owners all face the same problem — traditional lenders reject them on paper.
Two non-QM loan types solve this. Both skip W-2 requirements. But they work differently, and the wrong choice costs you.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace tax returns as proof of income.
Lenders typically average one to two years of 1099 earnings. If your gross 1099 income is strong, this path is clean and direct.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to your deposits to arrive at qualifying income.
This works well for business owners who write off expenses aggressively. Your tax return may show low income — your bank account tells the real story.
1099 loans use your gross earnings from 1099 forms. Bank statement loans use actual cash flow. These produce very different qualifying income numbers.
If you deduct heavily on taxes, bank statement income may calculate lower than your 1099 gross. Run both scenarios before committing to either path.
Pure freelancers and contractors with steady 1099 clients usually qualify cleaner on a 1099 loan. The math is simpler and documentation is lighter.
Business owners with multiple revenue streams, employees, or high deductions typically do better with bank statements. Talk to us — we run the numbers both ways.
Yes. We often run both scenarios for Santa Barbara clients. The better qualifying income determines which path we take.
No specific industry is required. You need documented 1099 income from one or more clients over the past one to two years.
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.
Both are non-QM loans with flexible credit standards. Minimum scores vary by lender. Rates vary by borrower profile and market conditions.
Yes. Many lenders accept personal statements. Business statements may produce a higher qualifying income depending on your deposit patterns.
Both loan types can work on condos, single-family homes, and investment properties. Property type affects lender availability and terms.