Question 1

Can I use both 1099s and bank statements?

Accepted Answer

Some lenders allow hybrid documentation. Most require you to pick one method per loan application.

Question 2

Do these loans cost more than conventional?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.

Question 3

How much do I need for a down payment?

Accepted Answer

Most non-QM lenders require 10–20% down. Lower credit scores typically push that requirement higher.

Question 4

What credit score do I need?

Accepted Answer

Many lenders accept scores starting at 620 for these programs. Stronger scores get better pricing.

Question 5

Which loan closes faster in Santa Maria?

Accepted Answer

Speed depends on how quickly you can provide documents. Bank statements take time to gather — start early.

Question 6

Are these loans available for investment properties?

Accepted Answer

Yes. Both 1099 and bank statement loans can be used for investment properties in Santa Barbara County.

1099 Loans vs Bank Statement Loans in Santa Maria