I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Business owners who write off everything are a significant part of my practice — the non-QM programs solve this cleanly. Call (800) 239-1103.
You have built a great business and used every tax advantage available to you. Your accountant is proud. Your tax bill is minimal. And now you cannot get a mortgage because the bank looks at your Schedule C and sees a person who makes almost nothing.
This is the self-employed mortgage paradox, and it affects thousands of California business owners every year. The fix is not to change your tax strategy. The fix is to change your lender type.
The Problem with Heavy Write-Offs on a Conventional Loan
Conventional mortgage lenders are required by Fannie Mae and Freddie Mac to use your net taxable income from your federal return, averaged over two years. Every dollar you deduct from business income reduces what the lender will qualify you on.
If your business generates $500,000 in revenue and you legitimately deduct $380,000 in expenses, your Schedule C shows $120,000 in net income. A conventional lender may qualify you on as little as $8,500 per month — a fraction of what your business actually produces.
Non-QM Loans: Built for Business Owners Who Write Off
Portfolio lenders offering non-QM products designed their guidelines specifically around the reality of how business owners manage their finances. These programs do not use your tax return for income qualification.
Bank Statement Loan
Lender averages your business bank deposits over 12 or 24 months, applies an expense factor (typically 50%), and qualifies you on that gross deposit average. $500,000 in annual deposits at 50% = $250,000 qualifying income. Very different from your Schedule C. See: Bank statement loans guide.
P&L Only Loan
Your CPA prepares a Profit and Loss statement that reflects what your business actually earns and spends at the business level — not the aggressive tax-planning version on your 1040. Many business owners show more income on a properly structured P&L than on their personal return. See: P&L only loans guide.
Asset Depletion
If your write-offs have been funding business growth and you have retained assets — in the business or personally — an asset depletion loan can qualify you on those assets without touching income documentation at all. Lenders divide eligible assets by the remaining loan term in months to produce a monthly qualifying income figure.
The Right Strategy
Do not change your tax strategy to get a mortgage. Work with a non-QM specialist who can qualify you as you are. I have helped many California business owners — contractors, consultants, retailers, healthcare providers, tech entrepreneurs — get approved using their actual financial picture rather than the one their tax return tells.
Related: Self-employed mortgage guide | Bank statement loans | P&L only loans | 4 ways to qualify
Frequently Asked Questions — Business Owner Mortgage California
Can I get a mortgage if my Schedule C shows low income because of write-offs?
Yes — through non-QM programs that don’t rely on your tax return. A bank statement loan qualifies you on your gross business deposits (averaged over 12 or 24 months) rather than net Schedule C income. A P&L only loan uses a CPA-prepared income statement. These programs exist specifically for business owners whose tax returns understate their real financial strength. The key is finding a lender who specializes in these programs — a retail bank or big lender won’t offer them.
Should I stop writing off business expenses to qualify for a mortgage?
No. That’s the wrong approach — you’d give up real tax savings for a marginal qualification improvement on a conventional loan that isn’t the right product for you anyway. Instead, use a non-QM program designed for business owners. The non-QM path lets you keep your full tax strategy while still qualifying based on your real gross income. I routinely help business owners who’ve been told by a bank to “just make more money on your return” — the real answer is a different lender type, not a different tax strategy.
What’s the minimum down payment for a non-QM bank statement loan in California?
Most bank statement programs require 10–20% down depending on the loan amount and the borrower’s credit profile. Credit scores of 700+ with strong deposits typically qualify for 10% down options. Loan amounts can go well into jumbo territory — $2M+ in many cases. Down payment requirements increase modestly at higher loan amounts. I compare programs from multiple non-QM lenders to find the best combination of rate, down payment, and qualifying income methodology for each business owner’s specific deposit pattern.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
