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Chico attracts retirees, landlords, and cash-heavy investors who don't draw a traditional paycheck. Asset depletion loans exist for exactly this borrower.
This is a non-QM loan. That means it falls outside standard Fannie Mae and Freddie Mac guidelines. Fewer lenders offer it — but the right broker can find one.
Typically 680+
Min Credit Score
Often 20%+
Down Payment
60–84 months
Income Divisor
None required
Income Docs
Non-QM
Loan Type
Asset Depletion Loans in Chico
Lenders convert your liquid assets into a monthly income figure. A typical formula divides eligible assets by 60 to 84 months. That number becomes your qualifying income.
Eligible assets usually include checking, savings, money market, and investment accounts. Retirement accounts often qualify at a haircut — typically 60 to 70 percent of their value.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico attracts retirees, landlords, and cash-heavy investors who don't draw a traditional paycheck. Asset depletion loans exist for exactly this borrower.
This is a non-QM loan. That means it falls outside standard Fannie Mae and Freddie Mac guidelines. Fewer lenders offer it — but the right broker can find one.
Lenders convert your liquid assets into a monthly income figure. A typical formula divides eligible assets by 60 to 84 months. That number becomes your qualifying income.
Your local bank almost certainly doesn't offer this product. Asset depletion is a niche non-QM program held by specialty wholesale lenders.
We work with 200+ wholesale lenders at SRK CAPITAL. A handful actively price asset depletion well. Rates vary by borrower profile and market conditions.
The formula matters as much as the lender. One lender divides by 60 months. Another uses 84. That gap can mean the difference between qualifying or not.
Illiquid assets — real estate equity, business ownership, collectibles — almost never count. Bring recent statements for every liquid account before we start.
Bank statement loans work if you have self-employment income depositing regularly. Asset depletion works when you're drawing little or nothing from your accounts.
DSCR loans make sense for rental properties — they qualify on rent income, not yours. Asset depletion is purely personal. It's the right tool when the asset is yours, not the property's.
Butte County saw significant population shifts after the 2018 Camp Fire. Some borrowers relocated to Chico with insurance settlements or rebuilding funds as their primary asset base.
Chico State's presence and the region's affordable price point attract cash buyers who want to preserve liquidity. Asset depletion lets them finance and keep cash working.
Checking, savings, money market, and brokerage accounts typically qualify. Retirement accounts usually count at 60-70% of their value.
Many lenders accept documented settlement funds as eligible assets. You'll need clear paper trail showing the source and current balance.
Most non-QM lenders want at least 680. Higher scores get better pricing — this is not a credit-repair product.
Lenders divide your eligible assets by a set number of months — often 60 to 84. The result is treated as monthly income.
No. Any borrower with significant liquid assets and limited verifiable income can qualify. Retirees are common, but not the only fit.
Asset depletion still requires full documentation of your assets. It's no-income, not no-doc — lenders verify every account statement.