Question 1

Do I need to be self-employed to get a bank statement loan?

Accepted Answer

Yes. This program is designed for self-employed borrowers. W-2 employees qualify more easily through conventional or FHA loans.

Question 2

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Most lenders accept business statements. They apply an expense factor — typically 50% — to calculate qualifying income.

Question 3

How long do I need to be self-employed?

Accepted Answer

Most lenders require 2 years of self-employment history. A CPA letter confirming your business is active is usually required.

Question 4

Are rates higher on bank statement loans?

Accepted Answer

Yes, typically higher than conventional rates. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a jumbo property in Santa Barbara with this loan?

Accepted Answer

Yes. Many non-QM lenders offer bank statement loans above conforming limits. Expect stricter reserve and credit requirements at higher loan amounts.

Question 6

What credit score do I need in Santa Barbara?

Accepted Answer

Most lenders want 660 or higher. Some programs allow 620 with strong reserves or a larger down payment.

Bank Statement Loans in Santa Barbara for Self-Employed Borrowers