Self-employed and investors in
California
Count of Non-QM loans in
California
Non-QM lending growth in
California
California is the largest Non-QM lending market in the United States. In 2024, lenders originated approximately 56,451 Non-QM loans, representing roughly 10% of national Non-QM originations and a 25.3% increase year over year. Non-QM lending activity in California is concentrated in major housing markets, with the Los Angeles, Riverside, and San Francisco metropolitan areas generating the highest volumes of originations. These markets combine high home prices, a large self-employed workforce, and strong investor activity, all of which contribute to sustained demand for alternative mortgage products.
Polygon Vision estimates that California contains approximately 998,533 potential Non-QM borrowers, including about 526,268 self-employed households and 472,265 small real estate investors. These groups frequently rely on alternative mortgage underwriting such as bank-statement loans and DSCR investor financing. The large gap between the potential borrower pool and current lending activity suggests that significant Non-QM mortgage demand may remain underserved in many California markets.