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Non-QM Home Loans for Self-Employed Borrowers in California
Income verified from the records that reflect what you actually earn. Primary residence and second home, California only.
- Bank statement, P&L, 1099
- Credit from 620
- California homes
On select programs, subject to lender approval. Not all applicants will qualify.
If you are self-employed, own a business or earn 1099 income, your tax returns may not reflect the full income available to support a mortgage. Blue Fox Capital arranges California home loans through third-party lenders that may use bank statements, a qualifying profit-and-loss statement, 1099s or eligible assets to document income. These programs still require income verification, an ability-to-repay review and lender approval.
Ways to Document Your Income
- Bank statements: 12 or 24 months of personal or business statements, with income calculated from deposits
- CPA-prepared P&L: a profit-and-loss statement prepared by your CPA or licensed tax preparer
- 1099 income: for independent contractors and commissioned professionals
- Asset-based qualification: savings, brokerage and retirement balances converted to a qualifying income stream
- Written verification of employment: on select programs
- ITIN and foreign national options: on select programs
Non-QM Loans in Los Angeles and Orange County
Documentation needs differ depending on how you earn. Business owners are typically asked for bank statements or a qualifying profit-and-loss statement along with proof of ownership. 1099 earners are usually asked for 1099s, bank statements or both. Borrowers with significant savings, brokerage or retirement balances may qualify using eligible assets. Which records a lender will accept depends on the program, so we start by learning how your income is documented and match the file to lenders whose guidelines fit.
This page covers consumer home loans for a home you live in or a second home. If you are financing a rental property as a business purchase, see California DSCR rental loans, which are underwritten on the property’s rental income and are business-purpose financing. Terms and availability vary by lender and are subject to income verification and lender approval.
Program Notes
- Who it’s for: self-employed borrowers, business owners, 1099 earners and asset-rich borrowers with modest reported income
- Occupancy: primary residence and second home, California only. Buying a rental instead? See California Investor Rental Loans.
- Credit: minimums vary by program. Some start at 620.
- Loan amounts: from conforming sizes into the multi-million-dollar range, on select programs
- Ability to repay: every program verifies your income with third-party records. This isn’t “no-doc” lending.
Non-QM Isn’t Subprime, and It Isn’t No-Doc
Non-QM loans fall outside the federal “qualified mortgage” definition, often because of how income is documented. Your ability to repay still has to be verified. What changes is which documents establish your income, not whether it gets documented.
How It Works
- Conversation. Property, purpose, how your income is documented and roughly where your credit sits. We don’t pull credit just to talk.
- Options. We come back with the programs that fit and what each one requires.
- Application and disclosures. Your chosen lender issues federal disclosures on the required timeline, including the full loan terms.
- Underwriting and close. We manage the file through closing.
Illustrative Scenarios
These examples show how documentation can differ by borrower. They are illustrations, not completed transactions, offers or quotes, and the figures are assumptions. Every program requires income verification, an ability-to-repay review and lender approval.
Illustrative example: business owner using bank statements
A restaurant owner’s tax returns show modest income after deductions. Over 12 months, the business account shows $480,000 in deposits, or $40,000 per month. If a program in this example applied a 50% expense factor, qualifying income would be $20,000 per month before the lender compares it with the proposed housing payment and the borrower’s other monthly debts. A different program might use a different factor or require 24 months of statements.
Illustrative example: 1099 earner
A commissioned sales professional is paid on 1099s and writes off significant expenses. A lender may review two years of 1099s together with bank statements to confirm that the income is consistent. Large gaps or unexplained deposits would likely lead to more questions.
Illustrative example: borrower with eligible assets
A recent seller of a business has substantial savings but little current income. Some programs convert eligible assets into a qualifying income stream. Which accounts count, and how they are valued, differs by program.
Buying a rental instead of a home you will live in? That is business-purpose financing with different rules. See California DSCR rental loans, and read Bank-Statement vs. DSCR Loans: Which Fits Your Property? for the difference.
FAQ
What is a Non-QM loan?
A mortgage that falls outside the federal qualified-mortgage rules, usually because income is documented differently, for example with bank statements instead of tax returns. The lender still has to verify that you can repay.
Who uses Non-QM loans?
Self-employed borrowers, business owners, independent contractors and borrowers with significant assets but modest reported income.
What documents will I need?
It depends on the program: 12 or 24 months of bank statements, a CPA-prepared P&L, 1099s, or asset statements, plus the usual credit, property and identity documents.
How do Non-QM costs compare to conventional loans?
Non-QM pricing is usually higher than conventional pricing, and it varies with credit, documentation type and the property. Your lender’s Loan Estimate shows your actual terms and costs.
Does Blue Fox Capital Corporation make these loans itself?
For consumer home loans, Blue Fox Capital Corporation acts as a California mortgage broker, not a lender. We arrange Non-QM loans through third-party lenders, and all loans require documented ability to repay and lender approval.
Are bank statement loans available in Los Angeles and Orange County?
Yes. We arrange Non-QM and bank-statement loans for California borrowers, including in Los Angeles and Orange County, through third-party lenders. Programs, terms and availability vary by lender.
How many months of bank statements are required?
Commonly 12 or 24 months, depending on the program. Some programs use a CPA-prepared profit-and-loss statement or 1099s instead.
What is the difference between a bank-statement loan and a DSCR loan?
A bank-statement loan for a home you live in qualifies the borrower’s income. A DSCR loan for a rental property qualifies the property’s rental income. See our guide on bank-statement vs. DSCR loans.
Can I use Non-QM for an investment property?
Yes. See California Investor Rental Loans for DSCR and bank-statement options on rentals.
Request Information
Tell us about the property and how your income is documented, and a loan advisor will respond within one business day.
For the loans described on this page, Blue Fox Capital Corporation acts as a California mortgage broker, not a lender. We arrange consumer mortgage loans through third-party lenders, in California only. CA DRE 01527288 | NMLS 1840487 (NMLS Consumer Access). Daniel Eckhouse, NMLS 217328 | CA DRE 01977403. All consumer mortgage loans require documented ability to repay and are subject to income, asset, credit, property and lender approval. Not all applicants will qualify. Programs, terms and availability vary by lender and may change without notice. This is not a commitment to lend. Equal Housing Opportunity. 66350 Pierson Blvd, Suite A, Desert Hot Springs, CA 92240 | (310) 756-3619 | dan@bluefoxcapital.com