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Asset Depletion Loans in San Joaquin
San Joaquin sits in Fresno County's ag corridor, where wealth doesn't always show up on a W-2. Retirees, landowners, and investors with significant assets but minimal reported income face constant loan denials from conventional lenders.
Asset depletion loans treat your portfolio as income. Lenders divide your liquid assets by 360 months, creating a qualifying income stream that gets you approved without explaining employment gaps or 1099 volatility.
You need substantial liquid assets—typically $500K minimum across stocks, bonds, retirement accounts, and savings. Lenders divide your total by 360, then use that monthly figure as your qualifying income.
Credit scores start at 620, though most approvals sit at 680+. Expect 20-30% down depending on asset levels and property type. Real estate holdings may qualify if properly documented and liquid.
Asset depletion sits squarely in non-QM territory. Traditional banks won't touch these loans—you need wholesale lenders who specialize in alternative documentation. Most require seasoned assets held for 60+ days to prevent manufactured qualification.
Rate pricing runs 1.5-3% above conventional programs. Rates vary by borrower profile and market conditions. The tradeoff: you qualify with zero tax returns, no employment letters, and no income documentation beyond asset statements.
I see three borrower types crush this program: retirees with investment portfolios, business owners who zero out taxable income, and trust fund beneficiaries. If your net worth doesn't match your tax return, asset depletion bridges that gap.
Common mistake: counting illiquid assets like art or collectibles. Lenders want statements from recognized institutions—Fidelity, Schwab, Chase. Cryptocurrency rarely qualifies unless converted to stable holdings 90 days pre-application.
Bank statement loans work better if you have revenue flowing through business accounts. DSCR loans beat asset depletion for pure investment properties. Asset depletion shines when your wealth sits idle in portfolios, not active businesses.
Foreign national loans overlap here—non-resident investors often combine asset depletion with visa documentation. The key difference: asset depletion focuses entirely on what you own, not where you earned it or how recently.
San Joaquin properties skew rural, which means fewer lenders approve asset depletion loans on acreage over 10 acres. Confirm your lender handles agricultural zoning before pulling credit. Appraisals take longer here—plan 3-4 weeks minimum.
Fresno County sees heavy ag investor activity. Many growers carry land equity but show minimal taxable income after depreciation and operating expenses. Asset depletion unlocks home purchases traditional underwriting would decline outright.
Checking, savings, stocks, bonds, mutual funds, and accessible retirement accounts like IRAs. Real estate equity doesn't count unless converted to a HELOC or sold and seasoned 60 days.
Yes, most lenders count 401(k) and IRA balances at 70% value to account for tax penalties. The funds stay invested—lenders just calculate what they'd generate as monthly income over 360 months.
Roughly $800K minimum. Lenders divide your assets by 360, then apply debt-to-income ratios. Your asset-derived income needs to cover the mortgage plus existing debts at 43-50% DTI.
Non-QM lenders can't sell these loans to Fannie or Freddie, so they hold the risk longer. Higher rates compensate for that portfolio risk and alternative underwriting.
Lenders require 60 days of seasoning to show funds weren't borrowed. Large deposits over $10K trigger sourcing requirements to prevent fraud or manufactured qualification.
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.