Trying to buy in the Hollywood Hills with income that arrives in bursts, from multiple gigs, or in stock rather than salary? You are not alone. Many creatives in Los Angeles earn well, yet traditional underwriting does not always capture their real cash flow.
In this guide, you will learn how lenders in the Hills commonly qualify self‑employed and entertainment professionals, which programs to consider, what to prepare, and how to choose the right lender fit. You will also get practical steps to move from interest to mortgage‑ready. Let’s dive in.
Why financing looks different here
Hollywood Hills is a high‑cost market within Los Angeles. Purchase prices often push you into high‑balance conforming or jumbo loans. That shifts underwriting expectations for credit, reserves, and documentation, and it can narrow the list of lenders who will finance your deal.
Many buyers here are actors, writers, producers, directors, designers, and contractors. Income can be irregular and sourced from freelance pay, royalties, union residuals, or equity compensation. Standard conforming rules assume stable W‑2 income and clean tax returns. If that does not reflect how you actually earn, you may need a specialized program.
The good news: lenders have tools to qualify strong buyers whose income is real but nontraditional. The key is matching your profile to the right underwriting approach and preparing the right documentation.
Loan options for creatives
Bank‑statement programs
What they are: The lender reviews 12 to 24 months of your personal or business bank statements and calculates an average monthly income from deposits. Some average gross deposits. Others adjust for business expenses, and many accept CPA letters or P&Ls to support the calculation.
When used: If you are self‑employed, receive 1099 income, or write off expenses that reduce your taxable income, bank‑statement underwriting can show the cash flow your tax return does not.
Key tradeoffs:
- Often higher interest rates and fees than standard conforming loans.
- Stricter requirements for credit scores, down payment, and reserves.
Good fit if:
- Your deposits show consistent cash flow over time, even if tax returns do not.
- You can provide clear, downloadable statements and business documentation when asked.
Asset‑depletion (asset‑conversion) programs
What they are: The lender converts your liquid assets into a qualifying income stream. They divide eligible assets by a set factor or number of months to create an “imputed” monthly income used to qualify.
When used: You have significant liquid assets in checking, savings, or brokerage accounts, but you do not show steady W‑2 or business income.
Key tradeoffs:
- You need substantial, documented liquid assets. Some lenders allow retirement accounts with limitations.
- Expect a larger down payment or lower maximum loan‑to‑value.
Good fit if:
- You have built sizable savings from past projects or investments and want that strength recognized in underwriting.
RSU‑aware and equity‑compensation treatment
What they are: Programs that recognize income from Restricted Stock Units or other equity. Lenders look for a track record of RSU vesting and sales, plus evidence that the income is likely to continue.
When used: You receive a meaningful portion of compensation in stock grants or you regularly sell vested shares to generate income.
Key tradeoffs:
- Documentation is more involved. Expect to provide grant agreements, vesting schedules, brokerage statements, and possibly tax returns showing prior RSU income.
- Treatment varies widely. Some lenders count a portion of historical RSU income, and some count only realized sales.
Good fit if:
- You can document 1 to 2 years of vesting and sales and can show future vesting expectations.
Other relevant options
- Non‑QM loans: A broad category that includes many alternative‑document programs. These loans still follow Ability‑to‑Repay rules, but they use different verification methods.
- DSCR loans: Primarily for investors. They may be relevant if you intend to rent part of the property and want underwriting based on rental income coverage rather than your personal income.
What to prepare before you apply
Preparation can make or break your timetable in the Hills. Collect these items early and keep them organized.
Core identity, credit, and assets
- Government ID and Social Security number.
- Credit report authorization and recent FICO score if available.
- Personal bank statements, often 12 to 24 months for bank‑statement programs.
- Business bank statements if business accounts receive deposits.
- Brokerage and investment account statements for liquid assets and RSU documentation.
- Retirement account statements if permitted for asset‑depletion, plus any rules on withdrawals.
- Proof of down payment funds and their source.
Income evidence by program type
Bank‑statement loans:
- 12 to 24 months of statements in lender‑approved format, not screenshots.
- Year‑to‑date profit and loss and balance sheet, ideally CPA prepared.
- Any supporting 1099s or past W‑2s if applicable.
Asset‑depletion:
- Statements for all liquid assets used in the calculation.
- Documents showing ownership and liquidity terms.
RSU and equity compensation:
- Equity grant documents and vesting schedules.
- Brokerage statements showing vesting and sale history.
- Tax returns showing RSU or stock sale income if available.
- Employer letter confirming grants and expected vesting if you can obtain it.
Royalties, residuals, and union payments:
- Distribution statements and union or guild payment statements.
- Contracts or agreements that indicate ongoing payments.
Supporting business documents
- Business formation documents and license if applicable.
- Most recent CPA‑prepared P&L and balance sheet.
- Year‑to‑date income summary and invoice history for freelancers.
Typical lender expectations
- Higher credit score benchmarks, often mid‑600s or higher.
- Larger reserves, sometimes several months to a year of payments.
- Bigger down payments for many alt‑doc and asset‑depletion loans.
Practical tips:
- Order official PDF statements from your bank and brokerage portals.
- Create a clean RSU packet with grant terms, vesting calendar, and a summary of sales.
- Ask your CPA for a letter that explains how business deductions affect your tax returns versus bank cash flow.
Choose the right lender fit
Not all lenders handle creative income the same way. Your choice can affect approval odds, pricing, and timeline.
Where to look
- Conventional banks and large lenders: Often prefer standard documentation and may avoid specialized programs.
- Non‑QM specialists and some credit unions: More likely to offer bank‑statement, asset‑depletion, and RSU‑aware products.
- Mortgage brokers: Can shop multiple wholesale lenders and often find the right niche program in a high‑cost market like the Hills.
Questions to ask a lender
- Which programs do you offer for self‑employed or creative income?
- How do you calculate bank‑statement income? Gross deposits, adjusted net, or CPA‑supported P&L?
- How many months of statements do you require, and do you need both business and personal?
- Do you accept RSU vesting schedules, or only realized sales? How much history do you need?
- What are the minimum credit score, maximum LTV, and reserve requirements?
- How do your rates and fees compare to conforming loans for the same scenario?
- What is your underwriting timeline for these programs?
- Are there any Los Angeles or property‑specific overlays I should know about?
Tradeoffs to expect
- Higher rates and lender fees than standard conforming loans.
- Stricter reserve and down payment requirements.
- Different interpretations of RSUs, royalties, and residuals across lenders.
- Appraisal sensitivity. Unique Hills properties, steep lots, ADUs, or atypical condos may require extra conditions.
Timeline and rate locks
Manual reviews take time. Alt‑doc underwriting can run longer because teams must read bank statements, CPA letters, and equity documents. Ask about realistic turn times, and choose a rate lock that covers the full review period. Confirm how extensions work if the seller needs extra time or if additional documents are requested.
Hollywood Hills property factors
In the Hills, property type can influence underwriting. Homes on steep lots, residences with nonstandard access, and buildings with complex HOAs can draw extra appraisal questions. If you plan to rent a portion of the property, ask early whether the chosen program allows that and how it affects your qualifying path. For high‑priced homes, be ready for jumbo guidelines and reserve expectations.
Practical next steps
Map your target price and loan size. Determine if your budget sits in conforming high‑balance or jumbo territory, since that drives lender options and reserve needs.
Gather statements now. Build 12 to 24 months of clean, downloadable bank and brokerage statements. Label files clearly.
Get CPA support. Ask for a P&L, balance sheet, and a concise letter that explains why your tax returns understate true cash flow.
Organize equity income. Prepare RSU grant docs, vesting schedules, and a summary of realize sales.
Model reserves and down payment. Confirm that your liquid assets cover the likely reserve requirement and your planned down payment.
Pre‑underwrite with your lender. Share a complete package so underwriting can flag issues before you write an offer.
Align property selection. If a home has unique features, confirm lender appetite early to avoid appraisal surprises.
Work with a local advisor
If your income is creative, your financing plan should be too. A tailored approach can help you compete in the Hills with confidence. For discreet guidance, curated options, and high‑touch transaction management from offer through closing, connect with Houses by Housman to request a private consultation.
FAQs
Will a lender accept bank statements instead of tax returns?
- Many will through a bank‑statement program, but requirements vary. Expect 12 to 24 months of statements and, in some cases, a CPA letter or supporting financials.
How do lenders treat RSU income when qualifying me?
- Lenders usually want a track record of vesting and realized sales and may count a portion of that history as income if continuation is likely, though policies differ widely.
Can royalties and union residuals help me qualify?
- Yes, with documentation and history. Distribution statements, union reports, and contracts that show ongoing payments can support your income.
How much in reserves should I plan for in the Hills?
- Expect higher reserves than standard loans, often several months of payments and sometimes 12 months or more for jumbo and non‑QM scenarios.
Do these programs require a bigger down payment?
- Often yes. Many alternative‑document and asset‑depletion loans require larger down payments or lower maximum loan‑to‑value.
Should I use a mortgage broker or go directly to a lender?
- A seasoned broker can match your unique income with the right specialty lender, but always vet their experience, lender panel, and track record in Los Angeles.
