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Asset Depletion Loans in Parlier
Parlier's affordability attracts retirees, entrepreneurs, and investors who hold substantial assets but lack traditional paychecks. Asset depletion loans let you qualify based on liquid holdings in retirement accounts, brokerage portfolios, or savings.
This program works well in Fresno County's agricultural economy where seasonal income and business ownership create non-standard pay structures. Lenders divide your total liquid assets by 360 months to calculate qualifying income.
Most lenders require $500,000+ in liquid assets after your down payment and reserves. Credit scores typically need to hit 680 minimum, though some portfolio lenders accept 660 with compensating factors.
Qualifying assets include stocks, bonds, mutual funds, money market accounts, and retirement accounts. Real estate equity and business assets don't count toward your depletion calculation.
Asset depletion sits firmly in non-QM territory. Your local credit union won't offer this program. We access specialized lenders who underwrite based on asset strength rather than employment history.
Rates typically run 1.5-3% higher than conventional loans, reflecting the non-standard documentation. Lender overlays vary significantly on asset types accepted and depletion formulas used.
I've closed these loans for Parlier clients sitting on $2M in IRAs but drawing minimal Social Security. The mistake borrowers make is counting home equity or business value in their asset total—those don't qualify.
Parlier's lower property values actually help here. A $350K home purchase becomes achievable when lenders calculate $100K-$150K annual income from a $1.5M portfolio. Document everything meticulously—two months of recent account statements are mandatory.
Bank statement loans work better if you run income through business accounts. Asset depletion makes sense when your money sits in investments or retirement accounts generating minimal reported income.
Foreign national loans might fit if citizenship complicates tax documentation. DSCR loans work for investment properties where rental income matters more than personal assets.
Parlier's agricultural economy creates unique borrower profiles—farm owners with equipment equity but irregular income, or families who've sold operations and hold proceeds in investment accounts. Asset depletion handles both situations.
Fresno County appraisers process these loans routinely despite the non-QM structure. Property values remain straightforward to document, keeping the asset side of underwriting simple even when income calculations get complex.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts like IRAs and 401(k)s qualify. Real estate equity and business assets don't count toward your income calculation.
Lenders divide your total liquid assets by 360 months to determine monthly income. A $1.8M portfolio generates $5,000 monthly qualifying income using this formula.
Most lenders restrict asset depletion to primary residences and second homes. Investment properties typically require DSCR loans based on rental income instead.
Rates vary by borrower profile and market conditions. Expect premiums of 1.5-3% above conventional rates due to non-QM underwriting and documentation requirements.
Provide two months of recent statements for every account used in your qualification. Statements must show account holder name, account number, and current balance clearly.
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.