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Asset Depletion Loans in Fresno
Fresno has a growing population of retirees, business owners, and investors who can't show W-2 income. Asset depletion loans let you qualify using liquid assets instead of traditional employment documentation.
This loan type works well in Fresno's agricultural and entrepreneurial economy. Many borrowers have substantial savings but irregular income that doesn't fit conventional underwriting boxes.
Asset depletion converts your bank and investment accounts into qualifying income. The lender divides your total liquid assets by 360 months to create a monthly income figure for qualification purposes.
You need substantial liquid assets to make the math work. Most lenders require at least $500,000 in qualifying accounts after down payment and reserves to generate enough monthly income.
Credit scores typically need to hit 680 minimum. Down payments start at 20% for primary residences and climb to 30% for investment properties in Fresno.
Qualifying assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity and business assets don't count in most programs.
Asset depletion sits in the non-QM lending space. Only specialized lenders offer these programs, and each has different asset calculation methods and reserve requirements.
Rates run 1-2% higher than conventional loans. Expect 7-9% range depending on credit profile and loan-to-value ratio. Rates vary by borrower profile and market conditions.
Some lenders discount retirement account values by 30% to account for early withdrawal penalties. Others accept full balances if you're over 59½ and penalty-free.
Most Fresno borrowers using asset depletion are recent retirees buying investment properties or downsizing. They have seven-figure retirement accounts but no steady paycheck.
The biggest mistake is not accounting for reserves. If you need $600K to generate qualifying income, you still need 12 months reserves on top of that amount plus your down payment.
I've seen deals where borrowers had $800K in assets but couldn't qualify because they needed $250K for down payment, $600K for income calculation, and $100K for reserves. The math needs to work across all three buckets.
Bank statement loans often beat asset depletion if you have business income. They use 12-24 months of deposits to qualify you and typically require less cash to close.
DSCR loans make more sense for Fresno rental properties. They ignore your personal income entirely and qualify on the property's rent instead of depleting your investment accounts.
Asset depletion wins when you're fully retired with no business activity and substantial liquid net worth. It's a narrow use case but powerful when it fits.
Fresno's lower home prices compared to coastal California mean asset depletion works at lower net worth levels here. A $700K portfolio might qualify you for a $400K home in Fresno but wouldn't generate enough income in San Francisco.
The ag economy creates seasonal income patterns that conventional lenders reject. Asset depletion sidesteps this by ignoring income timing entirely and focusing on accumulated wealth.
Many Fresno buyers using this program are relocating from expensive markets with substantial home equity. They're asset-rich but newly retired without traditional income documentation.
Most deals require $500K-$1M+ depending on purchase price. You need enough to cover down payment, generate qualifying income when divided by 360, and meet reserve requirements.
Yes, but treatment varies by lender. Some discount accounts by 30% for penalties while others accept full value if you're penalty-free on withdrawals.
Rates typically run 1-2% above conventional loans, generally in the 7-9% range. Rates vary by borrower profile and market conditions.
Yes, but expect higher down payments around 30% and larger reserve requirements. DSCR loans often work better for pure investment purchases.
They divide your total qualifying liquid assets by 360 months. A $720K portfolio creates $2,000/month qualifying income for debt-to-income calculations.
Real estate equity, business ownership stakes, and non-liquid investments are excluded. Only cash, stocks, bonds, and retirement accounts typically qualify.
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.