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Asset Depletion Loans in Brentwood
Brentwood attracts retirees, investors, and high-net-worth individuals who have significant assets but limited traditional income documentation. Asset depletion loans let these borrowers qualify using retirement accounts, stocks, bonds, and other liquid assets instead of W-2s or tax returns.
This Non-QM program works particularly well for Contra Costa County buyers transitioning between careers, early retirees with substantial portfolios, or business owners who minimize taxable income. Your financial strength is measured by what you own, not what you earn on paper.
Lenders calculate qualifying income by dividing your liquid assets by 360 months (a 30-year loan term). If you have $1.8 million in qualifying assets, that creates $5,000 monthly qualifying income. Credit scores typically need to be 680 or higher, with some lenders accepting 660.
Qualifying assets include checking and savings accounts, retirement funds (401k, IRA), stocks, bonds, and mutual funds. Real estate equity generally doesn't count unless you sell. Down payments usually start at 20% for primary residences and 25-30% for investment properties.
Rates vary by borrower profile and market conditions. Expect pricing 1-2% higher than conventional loans due to the specialized underwriting and portfolio lending nature of these programs.
Asset depletion loans come from portfolio lenders and Non-QM specialists, not government agencies or conventional mortgage programs. Most traditional banks don't offer these products. You'll work with lenders who keep loans on their books or sell to private investors.
Shopping for these loans requires comparing asset calculation methods, which vary between lenders. Some allow 70% of retirement account values, others use 100%. Documentation needs differ too—some want full account statements, others accept summary letters from financial institutions.
Closing timelines run 30-45 days on average. The specialized underwriting takes longer than conventional loans but moves faster than some other Non-QM products since asset verification is more straightforward than business income analysis.
The biggest mistake borrowers make is not asking how retirement funds are calculated. A lender using 70% of your IRA value versus 100% makes a significant difference in qualifying power. Always compare the actual monthly income calculation, not just interest rates.
Timing matters when markets are volatile. Your asset values are locked in when you apply, so consider applying when your portfolio is strong. Most lenders allow slight fluctuations during underwriting, but major drops can affect approval.
Consider keeping some assets liquid during the process. While most can remain invested, having readily accessible documentation and maintaining minimum balance requirements helps avoid delays. Some lenders want seasoned assets showing 60-90 days of consistent values.
Bank statement loans work better if you have consistent business deposits but lower overall assets. DSCR loans make more sense for pure investment properties where rental income covers the payment. Asset depletion shines when you have substantial wealth but irregular or minimal traditional income.
Compared to 1099 loans, asset depletion doesn't require analyzing income trends or business structures. You either have the assets or you don't. Foreign national loans require different documentation but may overlap with asset depletion for international buyers with U.S. accounts.
The choice often depends on your financial structure. Business owners with strong revenue might prefer bank statement loans. Investors with rental portfolios lean toward DSCR. Retirees and wealth holders typically find asset depletion the cleanest path to approval.
Brentwood's housing market serves diverse buyer types, from growing families to retirees leaving the Bay Area. Asset depletion loans help recent retirees purchase without waiting to establish pension income history or buyers downsizing from expensive markets who have equity but reduced income.
Contra Costa County property values make the 20-30% down payment requirements manageable for buyers with significant assets. The area attracts exactly the demographic these loans serve—financially stable individuals whose wealth doesn't show up on traditional income documents.
Working with a broker familiar with Brentwood's market helps match your asset profile to appropriate properties. Some neighborhoods attract more retiree buyers where asset depletion is common, while others see more traditional financing. Local expertise prevents approval delays.
It depends on the loan amount you want. Divide your desired monthly payment by 0.00278 to estimate required assets. For a $3,000 payment, you'd need roughly $1,080,000 in qualifying assets.
Real estate equity generally doesn't qualify unless you sell and convert it to liquid assets. Lenders want checking accounts, retirement funds, stocks, bonds, and similar investments that can be verified and valued.
No, accounts remain invested. Lenders verify balances and calculate theoretical income from those assets. You don't withdraw or change your investment strategy.
You'll provide recent statements (usually 60-90 days) from financial institutions. Some lenders accept summary letters from account custodians. Values are typically averaged over the statement period.
Yes, many borrowers add Social Security, pensions, or rental income to asset-based calculations. This combination can lower the required asset amount or improve your debt-to-income ratio significantly.
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.