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Asset Depletion Loans in Plymouth
Plymouth attracts retirees and portfolio holders drawn to Gold Country's lower cost of living. Many have substantial assets but minimal W-2 income.
Traditional lenders reject qualified buyers here daily because their balance sheets don't fit conventional formulas. Asset depletion fixes that disconnect.
This loan type works well in Plymouth's market where buyers often sell coastal properties and arrive with significant liquid assets but non-traditional income streams.
Lenders calculate income by dividing your liquid assets by 360 months. A $1.8M portfolio generates $5,000 monthly qualifying income on paper.
You need 620+ credit and typically 20-30% down. The more assets you show, the less cash down you need in most programs.
Eligible assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity and restricted stock don't count.
Most lenders require 6-12 months reserves after closing. That's on top of the assets used for income calculation.
Maybe a dozen non-QM lenders in our network offer true asset depletion programs. Each calculates the income formula differently.
Some divide by 360 months. Others use 240 or even 180, creating higher qualifying income from the same portfolio.
Rate spreads run wide—we've seen 1.5 points between lenders on identical borrower profiles. Shopping this loan type matters more than conventional loans.
A few lenders blend asset depletion with other income sources. That flexibility helps when you have partial Social Security or rental income.
We close more asset depletion loans in Amador County than almost anywhere. Retiring state workers and equity refugees know the drill.
The biggest mistake is not structuring assets correctly before applying. Moving funds between accounts during underwriting triggers reverification and delays.
Expect 45-60 day closings minimum. These files require more documentation than bank statement loans despite seeming simpler on the surface.
Rates run 1-2% higher than conventional but often beat jumbo programs for borrowers who'd otherwise fail income qualification entirely.
Bank statement loans work better if you run a business with decent revenue. Asset depletion fits true retirees without active income.
Foreign national loans might overlay with this if you're a non-resident with US assets. Some lenders combine both programs.
DSCR loans beat asset depletion for investment properties since rental income qualifies you directly. Save your portfolio for other uses.
The choice depends on your asset mix and plans. Most Plymouth buyers we see have $500K-$3M liquid but under $50K annual income on tax returns.
Plymouth's price points rarely require jumbo loan limits, making non-QM pricing more palatable than in coastal markets.
Properties here often need well and septic inspections that delay closings. Build extra time into your asset depletion timeline.
Rural appraisals in Amador County take longer and cost more. Some asset depletion lenders get nervous about wine country properties without comparable sales.
Fire insurance is the hidden cost. Your asset calculation needs to account for $4,000-$8,000 annual premiums that weren't factors five years ago.
Most lenders want $500K liquid minimum, but we've closed deals with $350K when credit and down payment are strong. Lower assets mean higher rates.
Yes, but lenders discount them 30-40% for early withdrawal penalties and taxes. A $1M IRA might only count as $600K-$700K in the calculation.
Some lenders allow it, but DSCR loans almost always make more sense for rentals. Asset depletion works best for primary or second homes here.
You'll pay 1-2% higher rates but qualify without employment verification. Worth it if you'd otherwise be declined or forced to liquidate long-term holdings.
California community property rules help. If married, we can usually use assets titled to either spouse, though some lenders require joint accounts.
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.