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Asset Depletion Loans in Oakland
Oakland attracts retirees, investors, and high-net-worth individuals who hold significant assets but lack traditional W-2 income. Asset depletion loans let you qualify based on your liquid accounts—stocks, bonds, retirement funds—rather than employment paychecks.
This loan type serves those who've built wealth through investments or inheritance but show minimal taxable income. Your financial strength appears in your balance sheet, not your pay stub.
Lenders typically require $500,000 to $1 million in verified liquid assets, depending on the loan amount. They calculate a monthly income figure by dividing your total assets by a set period, usually 60-360 months.
You'll need decent credit (usually 660+ FICO) and adequate down payment (20-30% typical). Assets must be liquid—real estate equity and personal property don't count. Acceptable accounts include checking, savings, stocks, bonds, and certain retirement accounts.
The math works like this: $1 million in assets divided by 120 months equals $8,333 monthly qualifying income. Lenders use this figure to calculate your debt-to-income ratio.
Asset depletion loans come exclusively from non-QM lenders—you won't find these at traditional banks. Each lender uses different asset divisors and acceptable account types, making expert comparison crucial.
Interest rates typically run 1-3% higher than conventional mortgages. Rates vary by borrower profile and market conditions, influenced by your credit score, loan-to-value ratio, and total asset picture.
Some lenders require reserves equaling 6-12 months of payments after closing. Others will count the same assets for both qualification and reserves, which simplifies the process.
The biggest mistake applicants make is waiting too long to document their assets. Lenders need 2-3 months of statements for all accounts used in qualification, and large deposits require extensive explanation.
We frequently see Oakland residents who sold Bay Area businesses or properties sitting on significant cash but showing little current income. Asset depletion perfectly fits their profile. The key is organizing your documentation early—gathering statements for multiple accounts takes time.
Some borrowers benefit from combining asset depletion with other income sources. If you have some self-employment income or rental properties, layering documentation strategies can improve your rate and terms.
Asset depletion differs from bank statement loans, which use deposits to prove income from self-employment. With asset depletion, you're not proving business income—you're proving you have enough savings to support the mortgage payment.
DSCR loans work for rental properties by ignoring personal income entirely, focusing on property cash flow. Asset depletion focuses on your personal balance sheet for any property type, including primary residences.
For foreign nationals without U.S. credit or income, specialized programs exist. Asset depletion serves U.S. residents and citizens who simply prefer not to document traditional employment.
Oakland's diverse housing stock—from historic craftsman homes to modern condos—all qualify for asset depletion financing. The loan amount limits depend on your specific asset levels rather than conforming loan limits.
Alameda County property values mean many borrowers need jumbo loan amounts. Asset depletion works well for higher-priced properties since qualified borrowers typically hold substantial assets anyway.
Local appraisal timelines and property tax considerations affect your closing process but don't change qualification requirements. The asset documentation remains your primary focus.
Yes, most lenders accept retirement accounts. They typically apply a 70% discount to account for early withdrawal penalties and taxes, though some accept 100% of the value for borrowers over 59½ years old.
Lenders verify assets at application and again before closing. Significant drops may require additional documentation or reserves. Keep your accounts stable during the loan process and avoid large withdrawals.
No, you're not required to sell investments. Lenders verify you have the assets and use that value to calculate qualifying income. You keep your investments intact while securing the mortgage.
Expect 30-45 days from application to closing. The timeline depends on how quickly you provide complete asset documentation and the appraiser's schedule, not the loan program itself.
Yes, asset depletion works for both purchases and refinances. Cash-out refinances are available but typically require higher reserves and lower loan-to-value ratios than rate-and-term refinances.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.