Self-made.
Self-employed home loans in Orange County and across California
An alternative income loan, also called a non-QM loan, lets self-employed buyers qualify on what they really make. Instead of only tax returns, the income can come from bank deposits, 1099s, a profit and loss statement or savings. It works for primary homes, second homes and rentals. It can cost more than a loan based on tax returns.
Sound like you?
Sound
like you?
“Let's look at what the business actually makes. The deposits, a P&L or your savings can tell the story the tax return can't.”
Write off everything?
The tax return says one thing. The deposits say another. We can use the deposits.
Paid on 1099?
Contractors, consultants, agents. One or two years of 1099s can qualify.
Buying a rental?
The rent itself can qualify the loan. No personal income paperwork.
Big savings, small paycheck?
Retired, sold a business, or living on what you built. What is saved can count.
Four ways to show what you make.
We pick the one that tells the true story. Three of the four need no tax returns.
- 01
The usual way
Tax returns or 1099s
One or two years of either.
- 02
12 or 24 months
Bank statements
Deposits, minus an allowance for expenses.
- 03
From the preparer
Profit and loss
By the tax preparer, for an established business.
- 04
Money set aside
Assets
Savings split into monthly income.
Self-employed
Questions,
answered.
Why do my tax returns hurt me? I have great cash flow.
Legitimate deductions, depreciation, vehicle, office, equipment, meals, retirement, reduce your Schedule C net income on paper, even though cash stays in your business. Full-doc lenders use net income only. Non-QM programs look at deposits instead, fixing the disconnect.
Can I qualify for a conventional (Fannie Mae) loan?
Yes, many self-employed borrowers with 2+ years stable/growing income do. Lenders average 2 years of tax returns and may add back depreciation. If conventional says no, Non-QM is the answer, not the first option.
What exactly do Non-QM lenders look at?
Bank-statement loans: 12-24 months of personal and business bank deposits. P&L loans: profit-and-loss statements. DSCR: the property's gross rent divided by the total monthly payment (PITIA). No tax returns, W-2s, or personal income verification.
I own a rental property. Can I use that income to buy a primary home?
Only with DSCR loans, they qualify you based on the rental's cash flow (debt service coverage ratio). Conventional lending limits you to using ~75% of rent as income. DSCR lets you use the full rental income if it supports the mortgage payment.
How much will Non-QM cost extra?
Typically 0.75% to 1.5% higher rate than a 30-year conventional. The trade is flexibility and approval when conventional doesn't work. Many borrowers refinance into conventional loans later once their tax situation looks better.
What's the minimum down payment?
Bank-statement and Non-QM programs start around 10% for strong credit (720+); most borrowers need 15-20% to get competitive pricing. DSCR investment loans usually require 20-25%. The stronger the file, the lower it goes.
Sound like you?
Text me what you're trying to do. I'll tell you if this loan fits, and what the payment looks like.
Also called a non-QM loan. That includes bank statement loans and P&L loans. Asset depletion and DSCR loans too.
Non-QM financing. Program terms vary and change. Loans on deposits, a profit and loss or savings can cost more than a loan on tax returns. Subject to borrower and property qualification. Not a commitment to lend.
By Brett Hickman, NMLS #2010859, Home First Financial, NMLS #2465048. Updated September 24, 2026.