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Asset Depletion Loans in Jackson
Jackson draws retirees and second-home buyers who hold wealth in portfolios, not W-2 paychecks. Asset depletion loans treat your liquid assets as income streams.
This program works well for gold country properties where buyers often downsize from Bay Area homes with significant equity. Lenders divide your assets by loan term to calculate qualifying income.
Most Jackson buyers using this loan hold $500k+ in retirement accounts or brokerage portfolios. It's built for people who are asset-rich but show minimal traditional income.
You need substantial liquid assets—typically $500k minimum after down payment and reserves. Lenders divide this amount by 360 months to create qualifying income.
Credit requirements run 620-680 minimum depending on loan-to-value. Most programs require 20-30% down for primary residence, more for investment properties.
Acceptable assets include stocks, bonds, mutual funds, and retirement accounts. Real estate equity and business holdings don't count. Some lenders cap retirement account usage at 70%.
Asset depletion is a non-QM product, so you won't find it at Wells Fargo or Bank of America. Private lenders and specialty finance companies dominate this space.
Rate pricing runs 1-3% above conventional loans. Expect 7.5-9.5% in current markets depending on your asset mix and property type.
Each lender calculates depletion differently. Some use straight division by loan term. Others apply age-based factors or only count 60-70% of retirement balances.
Closing typically takes 30-45 days. Documentation is lighter than stated income but heavier than DSCR—you'll provide full brokerage statements and asset verification.
I see this loan work best for Bay Area retirees buying in Jackson with $1M+ portfolios. The math gets tough below $750k in assets unless you're buying under $400k.
Don't liquidate assets to make a larger down payment thinking it helps. Lenders need to see those assets remain after closing to calculate your income stream.
Mix matters—100% stock portfolio gets different treatment than balanced funds. Some lenders haircut volatile assets by 30%. Know your lender's asset policy before applying.
This loan makes zero sense if you have pension income or social security covering your payment. Use conventional financing—it's cheaper and easier.
Bank statement loans require business ownership and 12-24 months of statements. Asset depletion needs no business—just a brokerage account.
DSCR loans work for rental properties where rent covers the payment. Asset depletion covers any property type but costs more than DSCR when both options fit.
Foreign national loans allow non-US citizens to buy but require 30-40% down. Asset depletion accepts US citizens and permanent residents with lower down payments.
Jackson's housing stock skews older with many properties needing updates. Lenders may require larger reserves if the home is pre-1970 or shows deferred maintenance.
Property values in Amador County can be harder to appraise with fewer recent sales. This sometimes pushes loan-to-value lower than you'd get in metro markets.
Wildfire insurance costs affect qualification. Budget $3k-6k annually for fire coverage—lenders include this in debt ratios even though asset depletion ignores traditional income.
Many Jackson buyers use this loan for second homes near family or as future retirement properties. Occupancy type changes pricing and asset requirements significantly.
Stocks, bonds, mutual funds, and retirement accounts qualify. Real estate equity, business value, and crypto don't count at most lenders.
Yes. Lenders count 60-70% of retirement balances without requiring withdrawal. The account stays invested while you qualify on paper income.
For a $500k purchase with 25% down, expect to show $600k-750k in liquid assets after closing. Less works for lower purchase prices.
You need 2-3 months of statements showing consistent balances. Large deposits require sourcing. Seasoned funds work better than recent transfers.
Some lenders blend income sources. If partial W-2 income helps you qualify conventionally, that's cheaper than going non-QM.
Yes. Investment properties price 0.5-1% higher than primary residence and require 25-30% down versus 20% for owner-occupied.
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.