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Richmond's diverse housing stock attracts retirees and early retirees with substantial assets but minimal W-2 income. Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of paystubs.
Most Richmond buyers using asset depletion own investment portfolios worth $500K to $5M. Lenders calculate qualifying income by dividing your liquid assets over the loan term—typically treating a $1.2M portfolio as $4,000 monthly income on a 25-year amortization.
Asset Depletion Loans in Richmond
You need $200K minimum in liquid assets after down payment and reserves. Lenders typically require 20-30% down and 660+ credit scores, though some go to 620 for stronger asset positions.
Acceptable assets include stocks, bonds, mutual funds, and sometimes retirement accounts like IRAs and 401(k)s. Cash in checking counts. Real estate equity and illiquid holdings like private equity do not.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Richmond.
Richmond's diverse housing stock attracts retirees and early retirees with substantial assets but minimal W-2 income. Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of paystubs.
Most Richmond buyers using asset depletion own investment portfolios worth $500K to $5M. Lenders calculate qualifying income by dividing your liquid assets over the loan term—typically treating a $1.2M portfolio as $4,000 monthly income on a 25-year amortization.
You need $200K minimum in liquid assets after down payment and reserves. Lenders typically require 20-30% down and 660+ credit scores, though some go to 620 for stronger asset positions.
Only non-QM lenders offer asset depletion programs—Wells Fargo and Chase do not touch these deals. Our network includes 15-20 wholesale lenders who price these loans competitively when your asset profile is clean.
Expect rates 0.75-2.00% above conventional depending on down payment and credit. A 25% down deal with 720 credit typically prices 1.00-1.25% higher than standard conforming rates. Larger down payments improve pricing.
I see Richmond buyers use asset depletion when they sold a business, inherited wealth, or retired early with heavy stock portfolios. The math works when monthly income from asset division exceeds your debt ratio needs.
Common mistake: counting home equity as qualifying assets. Lenders want liquid holdings they can verify through brokerage statements. Vanguard and Fidelity statements work. A Zillow estimate on your rental property does not.
Bank statement loans work better if you have business income but messy tax returns. Asset depletion makes sense when you have zero income but significant liquid wealth—think trust fund recipients or recent IPO beneficiaries.
DSCR loans beat asset depletion for rental properties because they ignore personal income entirely. Foreign national loans require asset depletion if the buyer lacks U.S. credit, making these programs complementary.
Richmond's waterfront properties and Point Richmond homes attract Bay Area retirees cashing out expensive markets. Asset depletion loans fit buyers who sold $2M San Francisco homes and want $700K Richmond properties with cash left over.
Iron Triangle and southern Richmond fixer opportunities sometimes fall outside lender comfort zones. Asset depletion lenders typically stick to properties appraising cleanly without deferred maintenance red flags.
Stocks, bonds, mutual funds, money market accounts, and sometimes IRAs or 401(k)s with 30-40% haircut. Real estate equity, business ownership, and collectibles do not qualify.
They divide your liquid assets by the loan term in months. A $1.2M portfolio on a 300-month loan creates $4,000 monthly qualifying income before debt ratios apply.
Yes, but lenders apply a 30-40% penalty haircut to account for early withdrawal taxes. A $500K IRA might count as $300K-$350K in qualifying assets.
Most lenders want 660 minimum. Some go to 620 if you put 30%+ down and have $1M+ in liquid assets post-closing.
Yes, though DSCR loans often price better for rentals. Asset depletion makes sense when the property has zero rental history or needs heavy rehab before tenanting.