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El Cerrito buyers with substantial savings but irregular income hit a wall with traditional lenders. Retirees, entrepreneurs, and investors holding significant liquid assets get shut out despite obvious ability to pay.
Asset depletion loans divide your cash, stocks, and retirement accounts by 360 months to calculate qualifying income. A borrower with $2 million in liquid assets shows $5,555 monthly income for qualification purposes.
This matters in El Cerrito where many tech exits and Bay Area professionals retire with investment portfolios but no W-2. The loan treats assets as the income source they actually are.
Asset Depletion Loans in El Cerrito
You need $500,000 minimum in liquid assets across checking, savings, stocks, bonds, or retirement accounts. Most lenders require 20-30% down and credit scores above 680.
Assets must be seasoned 60-90 days and fully documented. The lender divides your total by 360 to determine monthly qualifying income, then applies standard debt-to-income ratios.
Properties up to $3 million qualify in most programs. Some lenders cap at $2 million, others push higher for borrowers with exceptional liquidity.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in El Cerrito.
El Cerrito buyers with substantial savings but irregular income hit a wall with traditional lenders. Retirees, entrepreneurs, and investors holding significant liquid assets get shut out despite obvious ability to pay.
Asset depletion loans divide your cash, stocks, and retirement accounts by 360 months to calculate qualifying income. A borrower with $2 million in liquid assets shows $5,555 monthly income for qualification purposes.
This matters in El Cerrito where many tech exits and Bay Area professionals retire with investment portfolios but no W-2. The loan treats assets as the income source they actually are.
Asset depletion sits in the non-QM space where lender overlays vary dramatically. One lender counts 70% of retirement accounts, another counts 100%. Some accept foreign assets, most don't.
We shop 200+ wholesale lenders to find who treats your specific asset mix most favorably. The difference between counting your IRA at 70% versus 100% can mean $150,000 more buying power.
Rates run 1-2% above conventional but vary by asset strength and down payment. Stronger liquidity and larger down payments pull better pricing.
Most El Cerrito borrowers exploring asset depletion have other options too. If you've got 1099 income or rental properties, compare bank statement or DSCR loans before committing.
Asset depletion works best for true retirees or those between ventures with no current income stream. If you're earning anything reportable, other non-QM programs usually price better.
Watch the asset mix closely. Lenders treat stocks differently than savings, and retirement accounts get discounted. We model which accounts to include before pulling your statements.
Bank statement loans work if you have business deposits showing regular cash flow. Asset depletion makes sense when your income is irregular or non-existent but savings are deep.
Foreign national loans may overlap if your assets sit overseas, but expect higher rates and down payment requirements. DSCR loans beat asset depletion for rental purchases where rent covers the mortgage.
The real comparison comes down to asset strength versus income documentation. Strong assets but zero income means asset depletion. Some income means explore bank statement or 1099 programs first.
El Cerrito prices push many buyers toward jumbo territory where asset-based programs shine. The city attracts Bay Area professionals cashing out who need non-traditional qualification.
Proximity to Berkeley and Oakland means seller expectations run high. Asset depletion approvals move slower than conventional, so build 45-60 days into your purchase timeline.
County transfer taxes add to closing costs. Factor these when calculating your asset deployment since you'll need liquid funds for both down payment and higher Bay Area closing expenses.
Minimum $500K liquid, but most El Cerrito purchases need $1-2M in assets for sufficient qualifying income. Higher asset balances improve approval strength and rate pricing.
Yes, but lenders discount retirement accounts by 30-50% depending on age and withdrawal penalties. We calculate which accounts maximize your qualifying income.
No tax returns needed. You provide 60-90 days of account statements proving asset ownership and seasoning. The underwriter verifies balances, not income history.
Rates run 1-2% above conventional, varying by credit score, down payment, and asset strength. Expect 7.5-9% range currently based on your profile.
Plan 45-60 days from application to closing. Non-QM underwriting moves slower than conventional due to manual asset verification and lender-specific overlays.