Non-QM & Alternative-Income Loans for Self-Employed Borrowers in California
If you’re self-employed and write off a lot, your tax returns can understate what you actually earn, and a conventional underwriter may turn you down on income you really have. Non-QM programs verify your income from different records. Blue Fox Capital arranges these loans through third-party lenders for California homeowners and buyers.
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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
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.
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.
Can I use Non-QM for an investment property?
Yes. See California Investor Rental Loans for DSCR and bank-statement options on rentals.
Related programs: Home Loans | Jumbo Home Loans | Second Mortgages | All Loan Programs
Blue Fox Capital Corporation is 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