Being an entrepreneur and owning a business comes with incredible freedom — but when it comes time to buy a home, that independence can make things complicated. Traditional lenders rely heavily on W-2 income and pay stubs, leaving many self-employed buyers in Southern California frustrated when their true financial strength isn’t reflected on paper.
That’s where non-QM (non-qualified mortgage) solutions like bank statement loans and asset-based programs come in. These flexible loan products were designed with entrepreneurs, investors, and self-employed professionals in mind — helping you qualify based on your real income and assets, not just your tax returns. We’ve developed expertise in these specific types of loans so we can partner with our clients and help them reach their goals in real estate.
How Lenders View Self-Employed Income
When you’re self-employed, as an entrepreuner your income can fluctuate — and tax deductions, while beneficial for lowering your taxable income, can also make your numbers look smaller to traditional underwriters. Lenders typically want to see two years of tax returns, but if your reported income is too low, you might not qualify for the home you can actually afford.
We understand. We know that for many of our strongest applicants, tax returns won’t show their financial strength. Instead of focusing on adjusted gross income, bank statement loans analyze your business’s cash flow over the last 12 to 24 months. This approach provides a more accurate reflection of your earning power and allows you to qualify for a larger loan amount.
Bank Statement Loans: A Smart Option for Business Owners
Our team of Southern California mortgage experts knows how to align applicants with the right type of loan. A bank statement loan is often one of the best options for small business owners. With a bank statement loan, your lender reviews your business or personal bank statements to calculate your average monthly income. This means you can skip the W-2s and tax returns altogether.
Here’s what typically qualifies:
- 12–24 months of business or personal bank statements
- Proof of consistent deposits and responsible account management
- A minimum of two years in business or self-employment
- Good credit and reasonable debt-to-income ratios
It’s a straightforward, flexible solution — especially popular with Southern California entrepreneurs in fields like real estate, consulting, design, entertainment, private practice, and technology.
Asset-Based Lending for High-Net-Worth Borrowers
If your wealth is tied up in investments or business assets, an asset-depletion loan (or asset-based loan) might be the perfect fit. Instead of using income, this program calculates your ability to repay based on the value of your liquid assets — such as savings, stocks, or retirement accounts.
This type of loan is ideal for retirees, investors, or high-net-worth buyers who want to leverage their assets without selling them. It’s also a strong fit for luxury homebuyers in markets like Beverly Hills, Newport Beach, or Malibu.
Why Non-QM Lending Makes Sense for Entrepreneurs
For self-employed buyers in California, non-QM mortgages offer several key advantages:
- Flexible qualification: No W-2s or traditional income proof required
- Higher loan limits: Perfect for luxury or jumbo home purchases
- Fast approvals: Streamlined underwriting focused on your real financial picture
- Custom terms: Adjustable or fixed-rate options tailored to your business cash flow
In short, you don’t have to fit into the “traditional” lending box. Today’s lending options are built for entrepreneurs who think — and earn — differently.
How to Prepare Before You Apply
Non-QM loans might be your ideal solutions, but you need to prepare a little differently for the application than you would for a typical loan application. Here are a few steps to strengthen your application before approaching a lender:
- Organize your last 12–24 months of bank statements
- Check your credit score and address any issues
- Reduce revolving debt where possible
- Have documentation ready for business ownership and licenses
- Work with a mortgage professional experienced in self-employed and non-QM lending
