Last reviewed: September 20, 2026

    Non-QM Hub

    Non-QM Loans in CaliforniaFive programs for borrowers who don't fit the conventional box

    Non-QM (Non-Qualified Mortgage) loans use alternative documentation — bank statements, rental income, P&L, 1099s, or liquid assets — instead of W-2s and tax returns. Designed for self-employed borrowers, real estate investors, and high-net-worth Californians.

    Quick Answer

    What is a Non-QM loan?

    Cascada Mortgage Advisors, Inc. (NMLS #2470941, CA DRE #02206556), founded by Omar Michel (NMLS #398944, CA DRE #02131389), is a licensed mortgage broker serving California that arranges financing through a network of 100+ wholesale lenders — not as a direct lender. A Non-QM (Non-Qualified Mortgage) is a mortgage that uses alternative income documentation — bank statements, DSCR (rental income), P&L statements, 1099s, or liquid assets — instead of traditional W-2s and tax returns. Non-QM loans are fully legal, federally regulated, and originated through mainstream wholesale lenders. The firm offers five Non-QM product families in California: Bank Statement, DSCR, P&L Only, 1099 Income, and Asset Utilization.

    — Cascada Mortgage Advisors, Inc.

    When a Non-QM Loan Is the Right Tool

    Conventional, FHA, and VA loans qualify borrowers using two years of W-2s or tax returns and a debt-to-income ratio. That works for salaried employees with simple finances. Self-employed borrowers, 1099 contractors, rental-property owners, and people living from investment income may need a different way to document their ability to repay.

    Non-QM loans look at income the way an underwriter would if they were looking at the whole picture: actual deposits, actual rental income, the CPA's clean P&L, the brokerage account balance. The trade-off is a modest rate premium (typically 0.75%–2.0% above conventional) and a slightly larger down payment. For the right borrower, that is a small price to actually close.

    Self-employed with 20%+ business write-offs

    Real estate investor scaling past 10 financed properties

    1099 contractor with strong gross income but lean net

    Retired with large brokerage / IRA balances, low income

    Recent credit event (BK, short sale) outside conventional seasoning

    Foreign national buying California real estate

    The Five Non-QM Programs We Offer

    Each program targets a specific borrower profile. Most California borrowers qualify for two or three — we compare every option across 100+ wholesale lenders before recommending.

    Bank Statement Loans

    For: Self-employed W-2-less borrowers

    Qualify using 12 or 24 months of personal or business bank deposits instead of tax returns. Built for owners, freelancers, and 1099 contractors whose tax returns understate true cash flow due to write-offs.

    Bank Statement details

    DSCR Loans

    For: Real estate investors

    Qualify on the property's rental income — not your personal income. Close in an LLC, scale to unlimited financed properties, finance long-term rentals or Airbnb/STR. The workhorse program for California portfolio investors.

    DSCR details

    P&L Only Loans

    For: Self-employed with a CPA

    Qualify off a CPA-prepared profit & loss statement covering the most recent 12–24 months. Lighter documentation than full bank statement programs when your business books are clean and your CPA can sign off.

    P&L Only details

    1099 Income Loans

    For: Independent contractors paid on 1099

    Qualify using gross 1099 income (with a fixed expense factor) instead of net Schedule C. Ideal for high-earning consultants, sales reps, and real estate agents whose tax returns show heavy deductions.

    1099 Income details

    Asset Utilization Loans

    For: High-net-worth borrowers and retirees

    Qualify by amortizing liquid investment and retirement assets into a monthly income equivalent. No employment or income documentation required — just verifiable assets in qualifying accounts.

    Asset Depletion details

    HELOC — No Tax Return & Investor

    For: Homeowners tapping equity without a full refi

    Access your home equity through a Non-QM HELOC without providing tax returns — qualify on 12-24 months of bank statements, or on rental income for investment properties. Preserve your existing low first mortgage rate while unlocking equity.

    HELOC details

    Which Non-QM Loan Is Right for You?

    Are you buying or refinancing a rental property?

    Start with DSCR. You'll qualify off the property's rental income — no personal income documentation. If the DSCR doesn't pencil and you're self-employed with strong deposits, bank statement is the fallback.

    DSCR Loan details

    Are you self-employed and the property is your primary residence?

    Bank statement loans are usually the best fit. P&L only is lighter documentation if your CPA can sign a current statement. 1099 programs work if most of your income comes through 1099s rather than business deposits.

    Bank Statement details

    Are you retired or near-retired with significant investment assets?

    Asset utilization (also called asset depletion) qualifies you by converting liquid assets into a monthly income equivalent over the loan term. Common for La Jolla, Rancho Santa Fe, and Coronado retirees buying with $2M+ in brokerage accounts.

    Asset Depletion details

    Had a recent bankruptcy, foreclosure, or short sale?

    Some programs allow shorter waiting periods after bankruptcy or foreclosure, depending on lender and compensating factors.

    Non-QM Loan FAQs

    A Non-QM (Non-Qualified Mortgage) loan is a mortgage that does not meet the strict Ability-to-Repay rules set by the CFPB for Qualified Mortgages — usually because the income is documented differently (bank statements, rental income, assets, P&L) rather than through traditional W-2s and tax returns. Non-QM loans are fully legal, federally regulated, and originated by mainstream wholesale lenders. They simply give underwriters more flexibility to evaluate creditworthy borrowers whose income does not fit the conventional box.

    Non-QM loans are designed for self-employed borrowers, real estate investors, 1099 contractors, high-net-worth retirees, foreign nationals, recent credit-event borrowers (bankruptcy, foreclosure, short sale), and anyone whose tax returns understate their true ability to repay. If a conventional or FHA lender has declined you because your income documentation is unconventional — but you have strong assets, reserves, credit, or cash flow — Non-QM is usually the answer.

    Yes. Non-QM rates typically run 0.75%–2.0% above conventional rates because lenders accept more documentation flexibility in exchange for a risk premium. The exact spread depends on the program (DSCR is generally priciest, P&L often lowest), credit score, LTV, and reserves. The right comparison is not Non-QM vs. conventional — it is Non-QM vs. not buying the property at all.

    Usually yes. Most Non-QM programs require 10–25% down depending on the product, credit score, and property type. DSCR loans typically require 20–25% for purchase; bank statement loans can go as low as 10% with strong credit. Down payment requirements scale with credit and DTI strength.

    Yes. Some borrowers use a Non-QM loan and later refinance into a conventional loan when their documentation or credit profile qualifies. Prepayment terms vary by program and lender.

    Most Non-QM loans close in 21–30 days, comparable to or faster than conventional loans. DSCR loans are often the fastest because there is no income documentation to chase. Bank statement and P&L programs add a few days for the income calculation review.

    It depends on your borrower profile. If you are a real estate investor financing a rental: DSCR. If you are self-employed with heavy write-offs: bank statement or P&L only. If you are paid mostly on 1099: a 1099 program. If you are retired with large investment accounts: asset utilization. Most California borrowers qualify for two or three Non-QM programs and the right choice depends on rate, down payment, and how quickly you need to close. We compare every program across 100+ lenders before recommending.
    Southern California

    Where We Broker Non-QM Loans in Southern California

    DSCR, bank-statement, P&L-only, 1099, and asset-utilization programs are available across all seven Southern California counties — San Diego, Los Angeles, Orange, Riverside, San Bernardino, Ventura, and Imperial.

    See the full list on our Southern California service areas page.

    Serving self-employed borrowers in the region? See our Los Angeles Non-QM & bank statement loan page or Non-QM loans for Orange County self-employed borrowers →
    Serving La Jolla's self-employed and high-net-worth borrowers →·Non-QM loans for Ventura County self-employed borrowers →·Serving San Diego's self-employed borrowers →

    Not sure which Non-QM loan fits?

    Tell us about your income, the property, and the goal. We'll compare every applicable program across 100+ California wholesale lenders and bring back the two or three best options — usually within one business day.

    Also serving San Diego seniors with HECM and jumbo reverse mortgage programs. Learn more

    Call OmarGet Pre-Approved