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Asset Depletion Loans in Chico
What assets count toward qualification in Chico?
Checking, savings, money market, and brokerage accounts typically qualify. Retirement accounts usually count at 60-70% of their value.
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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
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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.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
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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.
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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.
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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.
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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.
FAQ
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.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Butte County
Our team of licensed mortgage brokers works Butte County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Butte County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.