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Asset Depletion Loans in Orland
Orland's agricultural economy creates unique income patterns that don't fit traditional mortgage underwriting. Farm owners, retirees with significant savings, and business owners frequently have substantial assets but irregular W-2 income.
Asset depletion loans convert your liquid holdings into qualifying income. A $500k investment portfolio becomes roughly $2,778 monthly income over 180 months—enough to qualify for mortgages that paycheck-based programs reject.
This loan type works well in Glenn County where property values stay reasonable but income documentation can get complicated. You're not competing with Bay Area buyers using conventional financing, so pricing stays competitive.
Most lenders require $500k minimum in liquid assets, though some start at $250k. Stocks, bonds, retirement accounts, and cash all count—real estate equity typically doesn't.
Credit scores usually need to hit 680 minimum. You'll divide your total liquid assets by 180-360 months depending on the lender, and that monthly figure becomes your qualifying income.
Expect 20-30% down payment requirements. LTV caps at 80% for most programs, sometimes 85% with stronger credit and larger asset pools. No income verification, tax returns, or employment letters needed.
Only about 15% of our wholesale lenders offer asset depletion programs. Big banks won't touch these loans—you need specialized non-QM lenders comfortable with alternative documentation.
Each lender calculates the depletion period differently. Some use 60 months, others stretch to 360 months. A longer period creates higher monthly qualifying income from the same asset base.
Rate pricing runs 1.5-3 points above conventional rates. Rates vary by borrower profile and market conditions, but expect mid-7% to low-8% range currently for strong applicants.
I use asset depletion for three Orland profiles: retirees moving from expensive markets, agricultural business owners with equipment-heavy balance sheets, and early retirees under 59.5 accessing non-retirement accounts.
The math matters more than most borrowers realize. If you're right at the asset minimum, consider waiting to accumulate more or explore bank statement loans instead. Higher asset totals unlock better rates and terms.
Don't drain accounts to make down payments. Lenders verify assets after closing costs and reserves. You typically need 6-12 months reserves remaining after funding—roughly $15k-30k for Orland price points.
Bank statement loans work better if you have business revenue over $100k annually but complex write-offs. They typically offer slightly lower rates and require less down payment.
DSCR loans make more sense for pure investment properties where rental income covers the payment. Asset depletion shines for primary residences when you have savings but limited income documentation.
Foreign national loans overlap with asset depletion for international buyers, but typically require 30-40% down. If you're a US citizen or permanent resident with assets, depletion programs offer better pricing.
Orland's $300k-500k typical price range works perfectly for asset depletion math. A $400k purchase at 75% LTV needs about $600k in assets to qualify comfortably with reserves.
Glenn County appraisals happen quickly—usually under two weeks. The rural market means fewer comps, but appraisers know local values well. Agricultural properties with additional acreage may need specialized rural appraisers.
Title work moves fast here compared to metro markets. Budget 30-45 days total from application to closing. The main delay comes from asset verification if accounts sit at multiple institutions.
Yes, retirement accounts fully count toward your asset total. Most lenders apply a 30% penalty reduction to reflect early withdrawal taxes, so a $500k IRA becomes $350k for calculation purposes.
Lenders use the value at application for qualification. Small fluctuations don't matter, but drops over 10% may trigger re-verification and affect your approval if you're near minimum requirements.
No, you keep your investments. The loan uses asset value to calculate theoretical income, but you don't actually convert anything to cash except for down payment and closing costs.
Typically 5-10 business days. You'll need two months statements from each account, plus verification of current balances. Multiple institutions or international accounts add time.
Yes, most lenders allow you to add rental income from other properties. This reduces the asset requirement needed to qualify for your Orland purchase or refinance.
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.