Loading
Asset Depletion Loans in San Ramon
San Ramon attracts successful professionals, retirees, and investors who hold significant assets but may not show traditional income. Asset depletion loans let you qualify using your liquid assets—stocks, bonds, retirement accounts—rather than relying on paystubs or tax returns.
This approach works well in Contra Costa County's competitive market where buyers with substantial portfolios need flexible qualification methods. Lenders calculate your monthly income by dividing your total liquid assets by the loan term, typically 360 months.
Retirement-age buyers and self-employed professionals with fluctuating income find these programs particularly useful. The focus shifts from what you earn monthly to what you own overall.
Most asset depletion programs require 620-680 minimum credit score and 20-30% down payment. Lenders verify assets through recent bank and brokerage statements showing consistent balances over several months.
Your liquid assets get divided by 360 months to create a qualifying monthly income figure. For example, if you have $1.8 million in verified assets, that translates to $5,000 monthly qualifying income under standard calculation methods.
Acceptable assets include checking, savings, money market accounts, stocks, bonds, and eligible retirement accounts. Primary residence equity typically doesn't count, and some lenders exclude certain retirement funds from the calculation.
Asset depletion loans come from non-QM lenders rather than traditional banks. These specialized lenders offer more flexibility but typically charge higher interest rates than conventional mortgages. Rates vary by borrower profile and market conditions.
Portfolio lenders and private institutions dominate this space. Each lender maintains different asset calculation methods and acceptable account types, making comparison shopping essential for San Ramon buyers.
Expect thorough asset documentation requirements. Lenders want to see consistent balances without large, unexplained deposits. The underwriting process takes longer than traditional loans but offers access to financing that employment-based programs cannot provide.
Asset depletion works best when buyers have substantial liquid holdings but complex income situations. We regularly help San Ramon clients who sold businesses, took early retirement, or manage investment portfolios instead of traditional employment.
Timing matters with these applications. Recent large deposits can trigger additional scrutiny, so plan asset movements carefully before applying. Consolidating accounts into fewer institutions sometimes simplifies documentation and strengthens your application.
Consider the full cost picture. Higher interest rates mean larger monthly payments, but if your assets generate returns exceeding the mortgage rate, keeping them invested while using this program can make financial sense. Run the numbers with your financial advisor.
Bank statement loans offer another path for self-employed buyers but require 12-24 months of business deposits. Asset depletion skips income documentation entirely, focusing solely on your accumulated wealth. This matters for retirees or those between careers.
Foreign national loans also avoid U.S. income verification but typically require larger down payments (30-40%). Asset depletion programs may accept lower down payments while serving U.S. citizens and residents with significant portfolios.
DSCR loans work for investment properties, qualifying based on rental income rather than borrower income. For San Ramon primary residences with substantial personal assets, asset depletion provides the straightforward alternative.
San Ramon's established neighborhoods attract buyers downsizing from larger Bay Area homes or relocating for Contra Costa County's relative affordability. Many carry significant home equity and investment assets but lack traditional employment.
The city's proximity to major employers means many residents build wealth through stock compensation and retirement accounts. Asset depletion loans help these professionals leverage accumulated wealth when buying or refinancing without income verification hassles.
Property values in San Ramon require substantial down payments regardless of loan type. Buyers using asset depletion programs typically have no problem meeting these requirements since significant liquid assets form the basis of their qualification.
Most lenders accept checking, savings, money market accounts, stocks, bonds, and mutual funds. Some include retirement accounts like IRAs and 401(k)s. Real estate equity and illiquid investments typically don't qualify.
Requirements vary by lender and purchase price. As a general guide, you'll need enough liquid assets to cover your down payment plus additional reserves that generate sufficient calculated monthly income to qualify.
Yes, asset depletion loans carry higher rates than traditional mortgages since they're non-QM products with more flexible qualification. Rates vary by borrower profile and market conditions, typically running 1-3% above conventional rates.
Many lenders count eligible retirement account balances toward qualification without requiring distributions. The balance gets included in the asset calculation, but you don't need to liquidate or withdraw to qualify.
Expect 30-45 days for underwriting and closing. The process takes longer than conventional loans due to thorough asset documentation review and non-QM lender workflows. Complete documentation upfront speeds the timeline.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.