If you’ve been searching for jumbo cash-out refinancing in California, exploring a jumbo loan refinance to pay off a Home Tap loan, or comparing jumbo mortgage refinance rates in California, you’re in the world where Non-QM loans (Non-Qualified Mortgage) solutions shine. We specialize in programs that can qualify strong borrowers who traditional underwriting overlooks because they don’t fit the mold. If you haven’t found the right mortgage for your unique goals and needs, let’s talk about how our team can help.
Non-QM, Defined (Without the Jargon)
A Non-QM (non qualified mortgage) loan is a mortgage that uses alternative documentation or flexible underwriting to assess your ability to repay. It is distinct from the mortgages that are insured by the government, and so we don’t have to follow the strict underwriting set by those government guidelines.
Instead of relying solely on W-2s and tax returns, Non-QM lenders like us may allow bank statements, P&L statements, asset depletion, or DSCR (Debt Service Coverage Ratio) to qualify applicants. The goal isn’t to lower standards—it’s to evaluate income and capacity more accurately for borrowers whose finances don’t fit inside a traditional box. Here’s what you need to know:
- Who is it for? Entrepreneurs, business owners, 1099 earners, investors, retirees with assets, and high-net-worth borrowers—especially those considering a jumbo loan or a luxury home refinance.
- What can it solve? Situations where tax write-offs depress your qualifying income, where you need to pay off a Home Tap loan, or where you want to qualify on alternative documentation to purchase or refinance in California because you’re self-employed.
Who Actually Benefits from Non-QM Loans?
Non-QM isn’t a niche product for risky borrowers; it’s a precision tool for creditworthy clients with complex finances. These are some examples of common profiles we help every day:
1) Self-Employed & Business Owners
You may take legitimate write-offs that reduce your taxable income, which can mean your business revenue and cash flow are stronger than they appear on a W-2. A bank statement mortgage or a Profit and Loss loan (self-employed) can capture your true earning power without forcing your finances into a W-2 framework.
2) High-Net-Worth Borrowers
Do you have significant assets with modest reported income? Lots of our clients do. Asset-depletion and stated income jumbo loan options can align qualification with your real capacity, which is particularly useful for coastal luxury markets needing a jumbo loan in California.
3) Real Estate Investors
With a DSCR loan, we qualify based on the property’s rental income rather than your personal finances. This is especially powerful when you are working on expanding a portfolio or executing a cash-out to reposition capital.
4) Jumbo Refinance Clients in Coastal Markets
If you’re considering a luxury home refinance, including a jumbo loan refinance, Non-QM loans can provide flexibility on documentation while still aiming for competitive pricing and smooth execution.
Popular Non-QM Paths With Real-World Examples
Let’s walk through how each of these can work for you.
Bank Statement Loans
We analyze 12–24 months of business or personal bank statements to determine your qualifying income rather than looking at your tax returns. This is ideal when your deposits tell a better story than your tax returns, which is common for contractors, agency owners, creatives, physicians in private practice, and other entrepreneurs.
P&L Loans for the Self-Employed
A Profit and Loss loan leverages CPA-prepared P&Ls to demonstrate your actual income. This can be a game-changer for borrowers seeking a jumbo loan or jumbo refinance where traditional underwriting misses the mark.
Asset-Depletion & Liquidity-Based Options
For high-net-worth clients, we may consider liquid assets to establish capacity. This is especially relevant in luxury markets where clients are exploring their options without relying on W-2s.
DSCR (Debt Service Coverage Ratio) Loans
These are specifically designed for real estate investors who want to qualify based on the property’s ability to cover its own mortgage payment. Many of our clients find them perfect for scaling portfolios or lining up a jumbo cash-out refinance to redeploy capital into new deals.
Myths About Non-QM, Debunked
- “Non-QM is subprime.” Simply put: no it’s not. Credit, assets, reserves, and down payment still matter. The difference is in how we document and evaluate income and capacity.
- “Rates are always much higher.” Not necessarily. Jumbo mortgage refinance rates in California vary by profile, LTV, reserves, and documentation. With strong credit and sensible leverage, pricing can be competitive.
- “Non-QM is only for buyers with problems.” Many Non-QM clients are financially strong business owners, investors, or affluent retirees who simply don’t fit a W-2 template.
Is a Non-QM Loan Right for You?
You may be a strong candidate if you’re:
- Self-employed with substantial deposits but modest taxable income
- An investor who wants DSCR-based qualification
- High-net-worth with meaningful liquid assets and complex income
- Exploring a jumbo cash-out refinance in California to pay off a Home Tap loan or to fund improvements/expansion
- Considering a luxury home refinance with alternative documentation
