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Reedley's agricultural economy creates unique income patterns. Retired farmers, land investors, and business owners often hold significant assets but lack W-2 income.
Asset depletion loans let you qualify using liquid assets instead of paystubs. Banks divide your total assets by 360 months to calculate monthly income.
This works well in Fresno County where property values stay reasonable. You need less capital to qualify than in coastal markets.
Asset Depletion Loans in Reedley
You need substantial liquid assets—typically $500K minimum. Lenders calculate income by dividing eligible assets by 360 (a 30-year term).
Credit scores start at 680. Most programs require 20-30% down payment. Retirement accounts like IRAs and 401(k)s count, but lenders apply a depletion factor.
Investment properties qualify using the same formula. Cash value in life insurance policies and non-retirement brokerage accounts work best.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Reedley.
Reedley's agricultural economy creates unique income patterns. Retired farmers, land investors, and business owners often hold significant assets but lack W-2 income.
Asset depletion loans let you qualify using liquid assets instead of paystubs. Banks divide your total assets by 360 months to calculate monthly income.
This works well in Fresno County where property values stay reasonable. You need less capital to qualify than in coastal markets.
Asset depletion is a Non-QM product. Regional banks won't touch it—you need specialty lenders who understand the underwriting.
Expect rates 1-2% above conventional loans. Most lenders cap at $3M, though some go higher for exceptional profiles.
Closing takes 30-45 days. Underwriters scrutinize asset statements and verify all accounts. Paper trails matter more than with traditional loans.
I've closed asset depletion loans for Reedley citrus growers who sold operations and retirees from out of state. The math works if you have at least $700K liquid.
Don't drain accounts for down payment. Lenders want to see assets remain after closing. A borrower with $1M in stocks making a $200K down payment still shows $800K post-close.
If you're under $500K in assets, bank statement loans often work better. They require less capital and sometimes offer lower rates.
Bank statement loans need 12-24 months of deposits but only $50K-$100K in assets. Asset depletion requires more capital but zero income documentation.
DSCR loans work for investment properties based on rent. Asset depletion covers primary residences and doesn't require tenants or lease agreements.
Foreign national loans serve non-US citizens. Asset depletion requires US bank accounts and serves citizens or permanent residents with unconventional income.
Reedley properties rarely exceed $800K. Your asset requirement stays manageable compared to Fresno or Clovis where prices run higher.
Many Fresno County borrowers have assets tied to farmland sales or equipment liquidations. Timing matters—get funds into liquid accounts 60 days before applying.
Property taxes in Reedley average 1.1% annually. Lenders factor this into debt ratios alongside your calculated asset-based income.
Most lenders require $500K minimum, but $700K gives you better rate options. The lender divides your total by 360 to calculate monthly qualifying income.
Yes, but lenders apply a 70% depletion factor to account for taxes and penalties. $100K in an IRA counts as $70K toward your total.
Yes, though DSCR loans often work better for rentals. Asset depletion shines for primary residences or second homes where DSCR doesn't apply.
Expect 1-2% higher than conventional rates. Rates vary by borrower profile and market conditions, but 7-9% is typical in current markets.
Plan for 30-45 days. Underwriters verify every account and trace fund sources, which takes longer than standard employment verification.
Some lenders allow it, but most treat this as an either/or scenario. If you have W-2 income, you probably don't need asset depletion.