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Pinole homebuyers with substantial assets but non-traditional income streams face frequent rejection from conventional lenders. Asset depletion loans solve this by converting your liquid holdings into qualifying income.
Contra Costa buyers often hold significant retirement accounts or investment portfolios after business exits or inheritance. This program treats those assets as dependable income sources rather than ignoring them.
Asset Depletion Loans in Pinole
Lenders divide your total liquid assets by 360 months (30 years) to calculate monthly qualifying income. A borrower with $1.8M in assets shows $5,000 monthly income under this formula.
Credit scores typically need to hit 680 minimum, though some portfolio lenders accept 660. You'll need 20-30% down depending on property type and total loan amount.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Pinole.
Pinole homebuyers with substantial assets but non-traditional income streams face frequent rejection from conventional lenders. Asset depletion loans solve this by converting your liquid holdings into qualifying income.
Contra Costa buyers often hold significant retirement accounts or investment portfolios after business exits or inheritance. This program treats those assets as dependable income sources rather than ignoring them.
Lenders divide your total liquid assets by 360 months (30 years) to calculate monthly qualifying income. A borrower with $1.8M in assets shows $5,000 monthly income under this formula.
Only non-QM lenders offer true asset depletion programs. Big banks won't touch this — you need specialized portfolio lenders who hold these loans rather than selling them to Fannie Mae.
Rate spreads vary wildly between lenders on the same deal. We've seen 1.5-2 point differences on identical Pinole borrower profiles depending on which lender reviews the file.
Most borrowers overpay because they apply with the first lender who says yes. Asset depletion pricing swings dramatically based on loan size, asset type, and whether accounts are qualified or non-qualified.
Pinole's price range means many deals fall into mid-tier pricing buckets where broker rate shopping saves $150-$300 monthly. Retirement accounts sometimes get better treatment than taxable investment accounts.
Bank statement loans work better if you have business income but messy tax returns. Asset depletion fits retirees or those living off investments without active business operations.
DSCR loans beat asset depletion for investment properties since they ignore borrower income entirely. Foreign national loans require this approach when US credit history doesn't exist.
Pinole's waterfront properties and hillside homes often attract Bay Area equity transplants with substantial assets but retired status. This loan type perfectly matches that buyer profile.
Contra Costa's property tax baseline and slower appreciation compared to neighboring counties makes asset depletion budgets stretch further. Your portfolio lasts longer when monthly housing costs stay reasonable.
Checking, savings, stocks, bonds, mutual funds, and retirement accounts all count. Real estate equity and business ownership stakes typically don't qualify unless fully liquid.
Most lenders restrict asset depletion to primary or second homes. DSCR loans work better for pure investment properties since they base approval on rental income instead.
Expect 1-2% higher rates than conventional conforming mortgages. Rates vary by borrower profile and market conditions but typically range 7-9% currently for strong credit.
No — asset depletion is just a calculation method. You keep full control of your investments and don't need to liquidate anything for loan approval.
Most lenders require $500K minimum in liquid assets. Higher-priced properties may need $1M+ to generate sufficient qualifying income under depletion formulas.