Non-QM Loans · Los Angeles

Outside the box?
We have a loan
for that.

Non-qualified mortgage programs for Los Angeles buyers whose income story doesn't fit the traditional mold. Self-employed, investors, entertainment industry, and more.

Understanding Non-QM

What is a Non-QM loan?

Non-QM (non-qualified mortgage) loans are mortgage programs that fall outside the standard agency guidelines set by Fannie Mae and Freddie Mac. They're not subprime — they're alternative documentation programs designed for real borrowers with non-traditional income profiles.

In Los Angeles, Non-QM isn't a niche product — it's the primary path to homeownership for a huge portion of buyers. Freelancers, business owners, entertainment industry workers in Studio City and Burbank, and real estate investors from Highland Park to Sherman Oaks all commonly use Non-QM programs.

Derek Vail at LiveLendLA specializes in matching LA buyers to the right Non-QM program based on their exact income situation.

Why LA buyers need Non-QM

W-2 income is increasingly uncommon in LA — most buyers are self-employed, 1099, or have complex income structures

High home prices mean strict DTI rules knock out even high earners using conventional loans

Entertainment industry income is real but project-based — traditional lenders don't know how to underwrite it

Real estate investors need loans based on rental income, not personal income

Programs

Non-QM loan types available in Los Angeles

Every program uses a different way to document income. The right one depends on how you get paid.

Bank Statement

Bank Statement Loans

12–24 months of bank statement deposits qualify you. No tax returns needed. Derek uses your actual deposits — not what the IRS sees after write-offs.

  • Self-employed borrowers
  • Personal or business accounts
  • Up to $3M+ loan amounts
  • Primary, second home, investment
Investor

DSCR Loans

Investment property loans based on rental income alone. Your personal income doesn't matter — the property's cash flow qualifies you.

  • Rental property cash flow qualifies
  • Close in LLC name
  • No limit on properties owned
  • Short-term rental income eligible
Asset Depletion

Asset Depletion Loans

Use liquid assets — brokerage accounts, savings, retirement — to derive qualifying income. No employment required.

  • Stocks, bonds, retirement accounts
  • No employment needed
  • Calculated monthly qualifying income
  • Ideal for retirees and high-net-worth buyers
1099 / P&L

1099 & P&L Programs

Alternative documentation for contractors and business owners. Use your 1099s or a CPA-prepared profit and loss statement to qualify.

  • Independent contractors
  • Gig economy borrowers
  • CPA-prepared P&L accepted
  • Entertainment industry workers
Loan Sizes

Non-QM loan sizes in Los Angeles

How big — or how modest — can a Non-QM loan be in this market? More flexible than most people assume.

These programs are built to scale with the LA market. On the lower end, Non-QM can finance a modest primary residence — a condo or starter home in neighborhoods like Glendale, Burbank, or Silver Lake — for a self-employed buyer whose tax returns don't tell the whole story. On the higher end, the same family of programs comfortably handles multi-million-dollar purchases in Encino, Studio City, or on the Westside near Santa Monica, with options reaching $3 million and beyond.

The right loan amount comes down to your qualifications and the specific program's guidelines — your income documentation, credit, down payment, and reserves all factor in. Rather than forcing your purchase into a one-size-fits-all limit, Derek matches you to a program whose parameters actually fit what you're buying. Whether you're stepping into your first home in Los Feliz or trading up to something larger in Sherman Oaks, text your scenario and you'll get a clear read on the loan size your situation supports.

Who Benefits

Non-QM is the answer when traditional says no

These programs exist because real borrowers — with real income and real assets — don't always fit into a standard box. Here's who Derek works with every day.

The Self-Employed Business Owner

You run a business and write everything off. Your tax returns show $60k but your bank deposits show $180k. A bank statement loan uses 12 or 24 months of deposits to calculate your qualifying income instead of your tax returns. No W-2 required — Derek qualifies you on what you actually earn, not what the IRS sees.

→ Bank Statement Loan

The Entertainment Industry Worker

Actors, writers, producers, directors, and crew work 1099 and project-to-project in Los Angeles — and many of them are buying near the studios in Studio City, Burbank, Sherman Oaks, and Los Feliz. Income is real and substantial — but it's inconsistent from a conventional mortgage standpoint. A 1099-only loan or bank statement program qualifies you based on how you actually get paid, not how a bank wishes you did. This is one of the most common Non-QM scenarios Derek handles in LA.

→ 1099 Loan or Bank Statement Loan

The Real Estate Investor

You want to buy a rental property but your personal income doesn't support another mortgage under conventional guidelines. A DSCR loan qualifies you based on the property's rental income — not your salary. If the rent covers the payment, you can qualify. Whether it's a duplex in Glendale or a small multi-unit in Silver Lake, you can close in an LLC if needed. No limit on how many properties you own.

→ DSCR Loan

The High-Net-Worth Buyer With Low Taxable Income

You have significant assets in a brokerage, savings, or retirement account but your taxable income looks thin on paper. Tech executives with RSUs, business owners who take minimal salary, and retirees in places like Encino, Santa Monica, and Pasadena all fit this profile. An asset depletion loan converts your liquid assets into qualifying monthly income — no employment required.

→ Asset Depletion Loan

The Buyer With a Recent Credit Event

Bankruptcy or foreclosure in the last one to two years doesn't automatically disqualify you. If you've recovered, rebuilt, and have stable income now, Non-QM programs exist specifically for buyers in your timeline. Derek has helped borrowers close in LA as little as 12 months after a bankruptcy discharge.

→ Non-QM Credit Event Program
FAQ

Frequently Asked Questions About Non-QM Loans in Los Angeles

Straight answers to the questions Derek hears most from LA buyers exploring Non-QM programs.

Yes — completely. Non-QM loans are fully regulated under both federal lending law and California's own rules, and I originate every one of them under my California license through the DFPI. The "non-qualified" label trips people up, so let me clear it up: it doesn't mean risky or subprime. It simply means the loan doesn't fit the narrow "qualified mortgage" box that Fannie Mae and Freddie Mac draw. Those agency rules were written for W-2 employees with simple tax returns — which describes almost none of the self-employed business owners, freelancers, and entertainment professionals I work with across Los Angeles. Every Non-QM loan still requires the lender to verify your ability to repay; that's the law. We document your income a different way — bank statements, 1099s, assets, or rental cash flow — but the underwriting is real and the consumer protections are the same ones that apply to any mortgage. You get the same disclosures, the same appraisal, the same closing process. I've helped buyers in Studio City, Pasadena, and Silver Lake close Non-QM loans with full confidence. If anything about a program ever felt unsafe or off, I'd tell you to walk away — but that's simply not the reality of how these loans work.
Usually a little, yes — and I'd rather be straight with you than pretend otherwise. Because we're verifying income in a more flexible way, the lender takes on slightly more perceived risk, and that shows up as a rate that's typically a bit above a comparable conventional loan. How much higher depends on your credit, your down payment, the program, and how you document income. A strong borrower with 25% down and great credit may see only a modest difference; a thinner file will see more. But here's the context that matters for most Los Angeles buyers: a conventional loan often isn't even on the table. If your tax returns show $70k after write-offs but your business actually nets far more, the conventional door is closed regardless of rate. A Non-QM loan at a slightly higher rate is what actually gets you the house in Sherman Oaks or Burbank. And it doesn't have to be permanent — plenty of my clients buy now on a bank statement loan, then refinance into a conventional loan a couple of years down the road once their documented income lines up. You build equity and appreciation in the meantime instead of waiting on the sidelines. I'll always show you the real numbers so you can decide with eyes open.
Most of my Non-QM loans in Los Angeles close in about 21 to 35 days, which is right in line with a conventional purchase. The timeline mostly comes down to how clean your documentation is. A bank statement loan where you send me 12 to 24 months of statements promptly tends to move fast. Asset depletion and recent-credit-event programs ask for a bit more review, so they can land on the longer end of that range. The single biggest factor is responsiveness — when you get me documents the day I ask for them, we keep momentum; when items trickle in, the clock stretches. I set expectations honestly at the start instead of promising a number I can't hit. Before you're ever in contract, I'll tell you what your specific file looks like and give you a realistic close date you can share with your agent and the seller in Glendale, Encino, or wherever you're buying. In a competitive LA market, a credible timeline is part of what makes your offer stick. I also stay ahead of underwriting conditions so we're not scrambling at the end. If something ever threatens the date, you'll hear it from me early — not the day before closing.
Absolutely. There's a myth that Non-QM is only for investors or second homes, and it's just not true. The majority of the Non-QM loans I write in Los Angeles are for primary residences — the home someone actually lives in. Bank statement loans, 1099 programs, asset depletion, and credit-event programs all work for owner-occupied purchases. So if you're a self-employed designer buying your first place in Los Feliz, a producer upgrading to a family home in Studio City, or a restaurant owner finally buying in Silver Lake, Non-QM is very often the path that gets you there. Owner-occupied files sometimes come with their own advantages, too — depending on the program, you may qualify with a lower down payment or stronger terms than you'd get on an investment property. The key is matching the right program to how you actually earn your money, and that's the part I handle. You tell me how you get paid and what you're trying to buy, and I'll tell you which primary-residence program fits and what it'll take to qualify. Text me your scenario and I'll give you a straight answer about your situation specifically — not a generic one. Buying the home you live in shouldn't require you to fit someone else's idea of a "normal" borrower.
Yes, and this is one of the most common situations I see. In Los Angeles, high home prices and non-traditional income tend to show up together — the same entrepreneur or entertainment professional who needs flexible income documentation is often shopping in a price range that's well into jumbo territory. Non-QM programs are built for exactly that overlap. We can go up to $3 million and beyond depending on the program, your credit, and your down payment. So whether you're buying a hillside home above Los Feliz, a larger property in Encino or Sherman Oaks, or a luxury condo on the Westside near Santa Monica, a jumbo Non-QM loan can get it done when a conventional jumbo lender balks at your tax returns. Jumbo files do get more scrutiny — reserves, appraisal, and documentation all matter more as the loan size climbs — but that's underwriting detail I manage for you, not a wall. I've structured plenty of high-balance purchases for self-employed buyers and investors whose conventional options were limited purely because of how they document income, not because of their actual financial strength. If you're looking at a higher-priced LA property and worried your income story won't translate, send it my way. There's very likely a program that fits.
Yes — and honestly, I plan for it from day one with a lot of clients. A Non-QM loan doesn't lock you in forever. It's a tool to get you into the home now, using the income documentation that actually reflects your life today. Once your situation lines up with conventional guidelines — usually after you have about two years of filed tax returns showing stable income, or once a past credit event ages off — we can look at refinancing into a conventional loan, often at a lower rate. There's no prepayment penalty on most owner-occupied Non-QM programs, so refinancing when the time is right is straightforward. This is a really common arc for the self-employed buyers and entertainment professionals I work with around Los Angeles: buy in Burbank or Pasadena now on a bank statement loan, build equity and let the home appreciate, then refinance a couple of years later once the paper catches up to reality. You're not penalized for using Non-QM as a bridge — you're using it exactly as intended. I keep your file in mind even after closing, and when rates or your documentation make a refinance worthwhile, I'll reach out. The goal was never just to close one loan; it's to get you into the right long-term position.
Why Derek

Why Work With Derek Vail for a Non-QM Loan?

Non-QM is its own world. The right program — and the right structure — depends on someone who works in it every day.

Non-QM lending lives in the details, and the details are exactly where most borrowers get tripped up. Derek Vail has spent his career helping Los Angeles buyers whose income doesn't fit a standard template find financing that actually reflects how they earn. That means self-employed business owners who write down their taxable income, entertainment industry professionals paid project-to-project, real estate investors growing a portfolio, and high-net-worth buyers whose wealth sits in assets rather than a W-2. These aren't edge cases to Derek — they're the bulk of the people he works with across the city.

What makes the difference is knowing which program fits which story. A 24-month bank statement loan for a restaurant owner in Silver Lake is structured very differently from a DSCR loan on a rental in Glendale, an asset depletion loan for a retiree in Pasadena, or a 1099 program for a freelance editor working the studios in Burbank and Studio City. Derek matches the borrower to the program — and just as importantly, he sets realistic expectations on documentation, down payment, and timeline before you're under contract, so there are no surprises when it counts.

He specializes in finding solutions when traditional financing falls short. If a producer in Sherman Oaks was told their income was "too complicated," if a business owner in Encino was denied because their write-offs shrank their qualifying income, or if an investor in Los Feliz hit a wall on conventional property limits — those are precisely the situations Non-QM was designed for, and the ones Derek navigates routinely. Where a conventional lender sees a file that doesn't fit the box, Derek looks for the program that does.

You also get a direct line. Derek works with buyers throughout Los Angeles — from Santa Monica to Pasadena — and he keeps it personal: text him your scenario and you'll get a straight, honest read on your options, including when Non-QM isn't the right fit. Every loan is subject to credit approval, underwriting, and verification, and nothing here is a commitment to lend — but if there's a workable path to your purchase, Derek's goal is to find it and explain it to you in plain language.

Work With Derek

Find your Non-QM lane

Derek Vail at LiveLendLA specializes in Non-QM loans for Los Angeles buyers — including self-employed borrowers, entertainment industry workers, real estate investors, and high-net-worth buyers. Text your scenario and get real numbers back within the hour.

📲 Text Your Scenario

Serving buyers across Los Angeles, Burbank, Studio City, Sherman Oaks, Encino, Glendale, Pasadena, Santa Monica, Silver Lake, Los Feliz, and surrounding areas.

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Derek Vail
NMLS #1233953
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