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Orinda attracts retirees and high-net-worth buyers with substantial savings but minimal W-2 income. Asset depletion loans let you qualify using liquid assets instead of employment documentation.
This program converts your investment accounts, retirement funds, and cash reserves into qualifying income. Lenders divide your total liquid assets by 360 months to calculate monthly income for approval.
Asset Depletion Loans in Orinda
You need at least $500,000 in liquid assets after your down payment and reserves. Most lenders require 20-30% down and credit scores above 680.
Eligible assets include checking, savings, stocks, bonds, 401(k)s, and IRAs. Real estate equity and business assets don't count. The more assets you have, the higher your qualifying income.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Orinda.
Orinda attracts retirees and high-net-worth buyers with substantial savings but minimal W-2 income. Asset depletion loans let you qualify using liquid assets instead of employment documentation.
This program converts your investment accounts, retirement funds, and cash reserves into qualifying income. Lenders divide your total liquid assets by 360 months to calculate monthly income for approval.
You need at least $500,000 in liquid assets after your down payment and reserves. Most lenders require 20-30% down and credit scores above 680.
About 15 of our 200+ wholesale lenders offer asset depletion programs. Each one uses different formulas to convert assets into income — some divide by 360 months, others by 240 or 120.
Rates run 1-2% above conventional loans because this is non-QM lending. Shorter depletion periods give you higher qualifying income but require massive asset balances. We shop your profile across all lenders to find the best formula.
Most Orinda buyers using asset depletion are funding $1.5M+ purchases with retirement accounts. They have the cash but can't show traditional income. This loan type beats waiting to build two years of 1099 history.
Lenders scrutinize where your assets came from. Recent large deposits trigger questions. If you sold a business or received an inheritance, you'll need documentation showing the source of funds.
Bank statement loans work better if you have business income but don't want to show tax returns. DSCR loans beat asset depletion for rental property purchases since you don't need personal income at all.
Asset depletion shines when you have huge liquid reserves but minimal ongoing income. If you're withdrawing from investments to live, this program converts those assets into qualifying power.
Orinda's median home prices put most purchases in the $1.5M-$3M range. You'd need $2M-$4M in assets post-closing to qualify for those amounts using standard 360-month depletion.
Property taxes here run 1.2% annually, and many homes need maintenance budgets for older properties. Lenders factor these costs into your debt-to-income calculation even when using asset depletion formulas.
Yes, most lenders count 401(k) and IRA balances at 70% of their value. You don't need to withdraw the funds — just prove you own them with recent statements.
Rates typically run 1-2% above conventional loans. Your exact rate depends on credit score, down payment size, and total asset balance.
Most lenders require 20-30% down. Larger down payments often unlock better rates and make qualification easier with lower asset totals.
No, you keep your investments intact. Lenders only require statements proving the assets exist, not proof you've sold them.
Yes, lenders combine all eligible liquid assets across different accounts. Stocks, bonds, retirement accounts, and cash all count toward your total.