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Kerman's agricultural economy creates unique income patterns that confuse traditional underwriters. Farmers, business owners, and retirees with significant savings often hold substantial wealth that W-2 documentation can't capture.
Asset depletion loans convert your liquid assets into qualifying income. The calculation divides your total assets by 360 months to create a monthly income figure that lenders use for approval.
Asset Depletion Loans in Kerman
You need substantial liquid assets to make these loans work. Most lenders require at least $500,000 in verified accounts after your down payment and reserves. Credit scores typically start at 680.
Bank accounts, stocks, bonds, and retirement accounts all count. Real estate equity doesn't qualify. Lenders verify every dollar through statements going back 60-90 days to confirm the money isn't borrowed.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Kerman.
Kerman's agricultural economy creates unique income patterns that confuse traditional underwriters. Farmers, business owners, and retirees with significant savings often hold substantial wealth that W-2 documentation can't capture.
Asset depletion loans convert your liquid assets into qualifying income. The calculation divides your total assets by 360 months to create a monthly income figure that lenders use for approval.
You need substantial liquid assets to make these loans work. Most lenders require at least $500,000 in verified accounts after your down payment and reserves. Credit scores typically start at 680.
This is pure non-QM territory. Your local bank won't touch it. We work with specialized lenders who fund these loans daily and understand the underwriting nuances that sink amateur brokers.
Rates run 1-2% above conventional loans as of February 2026. Expect 20-25% down payment requirements. Some lenders cap loan amounts at $3 million while others go higher for qualified borrowers.
The asset calculation makes or breaks these deals. One lender might exclude 401(k) balances while another counts 70% of it. We shop this across lenders who apply the most favorable methodology to your specific asset mix.
Kerman buyers often combine this with other non-QM options. Someone with $600K in assets plus business bank statements might qualify better under a bank statement program. We run both scenarios before you commit.
Bank statement loans require 12-24 months of statements and work better for operating businesses with consistent deposits. Asset depletion suits retirees, investors, and those who've liquidated businesses.
Foreign national loans serve non-residents buying U.S. property. DSCR loans work for pure investment properties where rental income covers payments. Each solves different documentation gaps.
Kerman's lower price points mean asset depletion borrowers often buy investment properties or second homes here. A $400K purchase needs roughly $650K in assets after down payment to clear underwriting.
Agricultural clients timing asset depletion around harvest proceeds need 60-day seasoning. Money hitting your account in December won't count for February closings. Plan asset positioning before you start shopping.
Roughly $650K minimum after your down payment and six months reserves. Lenders divide this by 360 months to create qualifying income, then apply standard debt ratios.
Yes, retirement accounts count at full or partial value depending on the lender. You never withdraw the money — it just qualifies you for the loan amount.
Expect 1-2% higher rates as of February 2026. A conventional loan at 6.5% might price at 7.5-8.5% under asset depletion. Rates vary by borrower profile and market conditions.
No PMI exists on non-QM loans. You avoid that cost but pay higher interest rates instead. The tradeoff usually favors borrowers planning shorter hold periods.
Borrowed funds, recently deposited cash without source documentation, and real estate equity don't count. Lenders trace every deposit over $1,000 in the seasoning period.