Loading
Loading
Concord's housing market attracts retirees, business owners, and high-net-worth buyers who hold wealth in assets rather than W-2 income. Asset depletion loans turn your investment accounts into qualifying income.
This program works well in Contra Costa County where many buyers have sold businesses or accumulated retirement savings. Lenders divide your liquid assets by 360 months to calculate monthly qualifying income.
Asset Depletion Loans in Concord
You need substantial liquid assets—typically $500k minimum for most purchases in Concord. Lenders accept checking, savings, money market, stocks, bonds, and retirement accounts.
Credit requirements start at 660, though some portfolio lenders go lower. Expect 20-30% down for purchase transactions. Cash-out refinances require more equity and higher credit scores.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Concord.
Concord's housing market attracts retirees, business owners, and high-net-worth buyers who hold wealth in assets rather than W-2 income. Asset depletion loans turn your investment accounts into qualifying income.
This program works well in Contra Costa County where many buyers have sold businesses or accumulated retirement savings. Lenders divide your liquid assets by 360 months to calculate monthly qualifying income.
You need substantial liquid assets—typically $500k minimum for most purchases in Concord. Lenders accept checking, savings, money market, stocks, bonds, and retirement accounts.
Only specialized non-QM lenders offer asset depletion programs. Portfolio lenders and private banks dominate this space. Each lender has different asset calculations and reserve requirements.
Rates run 1-2% above conventional loans due to limited investor appetite. Closing takes 30-45 days because underwriters verify every account statement and asset source.
I see asset depletion loans work best for buyers with $1M+ in liquid assets buying below that amount. The math stops making sense when you're depleting $600k to buy a $750k home.
Retirement accounts get discounted 30% for early withdrawal penalties. A $1M IRA becomes $700k in qualifying power. Plan your asset mix carefully before applying.
Bank statement loans require business income documentation. Asset depletion needs zero income proof—just verifiable assets. Choose bank statements if you run an active business with cash flow.
DSCR loans work for rental properties only. Asset depletion covers primary residences and second homes in Concord. Foreign national loans require different down payments and citizenship rules.
Concord's diverse housing stock from $500k condos to $1.5M single-family homes fits asset depletion budgets. Contra Costa County property taxes run 1.1-1.2%, affecting your debt-to-income calculation.
Many buyers use this program after selling Bay Area businesses or tech company stock. HOA fees in Concord communities get added to monthly obligations despite having no mortgage payment history.
Total liquid assets divided by 360 months equals monthly income. A $1M portfolio creates $2,778 monthly qualifying income. Retirement accounts get 30% penalty discount first.
Yes if your spouse joins the loan application. All assets must be jointly held or the account owner must be on title. Lenders verify ownership through 60 days of statements.
Real estate equity, business ownership, and cryptocurrency get excluded by most lenders. Stick with publicly traded stocks, bonds, and FDIC-insured accounts for cleanest approvals.
No, assets stay invested throughout the loan term. Lenders just use the calculation to prove you could generate income. You maintain full control of your accounts.
Asset depletion is a real mortgage with monthly payments. Securities-backed lines have variable rates and margin call risk. Asset depletion offers fixed terms without liquidation requirements.
Yes, but lenders discount the full balance by 30% for early withdrawal penalties. A $500k IRA qualifies as $350k in assets regardless of your actual withdrawal plans.