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Orange Cove sits in an agricultural heartland where traditional W-2 income doesn't tell the whole story. Retirees with substantial IRAs and farmers with land equity often get denied for conventional loans despite significant wealth.
Asset depletion loans solve this problem by converting liquid assets into qualifying income. A $500,000 portfolio becomes roughly $1,388 monthly income over 30 years, enough to qualify for most Orange Cove properties.
Asset Depletion Loans in Orange Cove
Lenders divide your liquid assets by 360 months to calculate qualifying income. $400,000 in accessible funds generates $1,111 monthly income. Most programs require 620+ credit and assets worth at least 12 months of payments.
You keep the assets—they're not depleted or seized. The calculation simply proves you can afford payments. Down payments typically start at 10-20% depending on credit profile and property type.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Orange Cove.
Orange Cove sits in an agricultural heartland where traditional W-2 income doesn't tell the whole story. Retirees with substantial IRAs and farmers with land equity often get denied for conventional loans despite significant wealth.
Asset depletion loans solve this problem by converting liquid assets into qualifying income. A $500,000 portfolio becomes roughly $1,388 monthly income over 30 years, enough to qualify for most Orange Cove properties.
Lenders divide your liquid assets by 360 months to calculate qualifying income. $400,000 in accessible funds generates $1,111 monthly income. Most programs require 620+ credit and assets worth at least 12 months of payments.
Asset depletion sits firmly in non-QM territory. Regional banks won't touch it. Credit unions can't offer it. You need a broker with access to specialized lenders who underwrite these manually.
We work with 12-15 lenders offering asset depletion programs. Each has different asset eligibility rules—some accept vested stock options, others won't. Pricing spreads 1-2% depending on which lender fits your situation.
Most Orange Cove borrowers using asset depletion are retirees with fat 401(k)s or citrus farmers with mineral rights and land holdings. The typical mistake? They apply at their local bank first and get rejected, damaging their credit with a hard pull.
Smart move: Preserve penalty-free retirement withdrawals by qualifying on paper value rather than liquidating for income verification. You avoid early withdrawal penalties and keep investments growing while securing the mortgage.
Bank statement loans require 12-24 months of deposits. Asset depletion only needs current account statements showing liquid value. If you're retired or your income is sporadic, asset depletion beats bank statements every time.
DSCR loans work for investment properties based on rental income. Asset depletion works for any property type—primary residence, second home, or rental—as long as you have the assets.
Orange Cove properties rarely break $400,000, which means smaller loan amounts work well with asset depletion minimums. A $350,000 purchase with 15% down needs $297,500 financed—comfortable territory for someone with $500,000 liquid.
Rural appraisals take 2-3 weeks here versus one week in Fresno. Non-QM lenders already price in longer timelines, but pad your escrow period. Agricultural properties with water rights or mineral leases may need specialized appraisers.
Yes. Lenders count the current balance divided by 360 months. You never touch the account and avoid early withdrawal penalties entirely.
Most lenders use a 70-90% discount on equities to account for volatility. A $500,000 portfolio might calculate as $350,000-$450,000 depending on holdings.
Yes. Expect to provide 60-90 days of statements showing consistent balances. Large recent deposits trigger sourcing requirements to prevent fraud.
Rates vary by borrower profile and market conditions. As of February 2026, expect 1.5-3% above conventional rates depending on credit and down payment.
Absolutely. Social Security, pensions, and rental income can supplement the asset calculation. We stack all sources to maximize your qualifying power.