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Asset Depletion Loans in Sutter Creek
Sutter Creek's retirement and Gold Country tourism economy creates unique borrower profiles. Many buyers here have substantial portfolios but minimal wage income.
Asset depletion loans work well for this market. Lenders convert liquid assets into qualifying monthly income. No tax returns or pay stubs needed.
Most lenders require $500K minimum in liquid assets after down payment. They divide remaining assets by 360 months to calculate monthly income.
Credit scores typically start at 640. LTV maxes out at 80% for purchases, 75% for refinances. Reserves depend on asset levels and property type.
Asset depletion sits in the non-QM space. Not every wholesale lender offers it. The ones that do have wildly different asset calculation methods.
Some lenders count 100% of liquid assets. Others discount stocks and bonds by 30-40%. A few allow real estate equity in the calculation with bigger haircuts.
I send Sutter Creek asset depletion deals to three specific lenders. Each handles retirement accounts differently. One allows IRA balances with minimal penalty assumptions.
The math matters more than you'd think. A $1M portfolio calculated at 70% versus 100% changes your qualifying income by $1,750/month. That's the difference between approval and denial on a $600K purchase.
Bank statement loans require business income documentation. Asset depletion needs zero income verification. Just liquid assets and standard credit underwriting.
DSCR loans work for investment properties only. Asset depletion handles primary residences and second homes. Better fit if you're buying a Sutter Creek retirement home with portfolio funds.
Sutter Creek's historic properties sometimes hit appraisal issues. Asset depletion lenders are pickier about condition than conventional programs. Foundation problems kill these deals.
The small-town market means limited comps. Appraisers pull from Ione and Jackson frequently. That radius can help or hurt depending on recent sales activity in those areas.
Checking, savings, stocks, bonds, and money markets count fully. Retirement accounts work with some lenders but may face 30% haircuts on the balance.
Yes, second homes qualify under most asset depletion programs. LTV drops to 75% and you'll need higher reserves than primary residence purchases.
They require 2-3 months statements showing consistent balances. Large deposits get sourced. Sudden transfers right before application raise red flags with underwriters.
Most programs exclude rentals. DSCR loans handle investment properties better since they use property cash flow instead of personal assets.
Expect 2-3% higher than conventional rates. Non-QM pricing reflects the flexibility and reduced documentation requirements of asset-based qualification.
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.