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Asset Depletion Loans in Maricopa
Maricopa attracts retirees, self-employed professionals, and investors who have significant assets but non-traditional income streams. Asset depletion loans let you qualify based on your liquid savings and investments rather than W-2 income.
This loan type works well for borrowers with substantial retirement accounts, investment portfolios, or cash reserves who don't fit traditional employment verification requirements. Your assets become your qualifying income source.
Kern County's affordable property values make Maricopa an attractive market for asset-based financing. Borrowers can access mortgage approval by demonstrating financial strength through their accumulated wealth rather than monthly paychecks.
Lenders typically require at least $200,000 in liquid, verifiable assets to consider asset depletion financing. These assets include checking accounts, savings, stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs.
The lender divides your total liquid assets by a set number of months (usually 60-360 months) to calculate your qualifying income. Credit scores typically need to be 680 or higher, though requirements vary by lender.
Down payment requirements usually start at 20% for primary residences and 25-30% for investment properties. Rates vary by borrower profile and market conditions based on your asset levels and overall financial picture.
Asset depletion loans are specialty non-QM products not offered by traditional banks or credit unions. You'll need to work with mortgage brokers or non-QM lenders who understand these unique programs and their underwriting guidelines.
Each lender uses different formulas to calculate qualifying income from your assets. Some divide by 60 months, others by 120 or even 360 months, which significantly impacts your approved loan amount.
Documentation requirements focus on proving asset ownership and liquidity rather than employment history. You'll provide bank statements, investment account statements, and retirement account documentation instead of tax returns or W-2s.
The asset calculation formula makes a huge difference in your buying power. A lender using a 60-month depletion schedule will qualify you for much more than one using 360 months with the same asset base.
Don't drain your assets for a larger down payment if it reduces your qualifying income. Sometimes maintaining more reserves while making a smaller down payment results in higher approval amounts.
Retirement account assets can be used for qualification even if you're under 59.5 years old. Lenders typically apply a 70% discount to retirement accounts to account for potential early withdrawal penalties and taxes.
Bank statement loans work better if you have business income but irregular deposits. Asset depletion makes sense when you have substantial savings but minimal cash flow from work or business operations.
DSCR loans are the better choice for pure investment properties where rental income covers the mortgage. Asset depletion works best for primary residences or second homes where you're not generating rental income.
Foreign national loans require less documentation but typically need larger down payments. If you're a U.S. citizen or permanent resident with strong assets, asset depletion often provides better terms and lower rates.
Maricopa's lower property values compared to coastal California markets mean your assets stretch further here. A $500,000 portfolio that might not qualify you in San Diego could work well for Maricopa properties.
The city's growing retirement community makes asset depletion loans increasingly common. Local real estate agents and title companies are familiar with these transactions and their unique requirements.
Kern County property taxes and insurance costs factor into your total housing payment calculation. Lenders will verify you have sufficient assets to cover not just the mortgage but all housing expenses divided over the depletion period.
You can use checking and savings accounts, stocks, bonds, mutual funds, 401(k)s, IRAs, and other liquid investments. Retirement accounts are typically valued at 70% to account for taxes and penalties.
No, you keep your assets invested. Lenders simply use your total asset value divided by a set number of months to calculate your qualifying income for mortgage purposes.
It depends on the lender's depletion formula. With a 60-month calculation, that's $5,000 monthly income. With 120 months, it's $2,500. Your approval amount varies significantly based on the calculation method used.
Yes, though down payment requirements are typically higher for investment properties, usually 25-30%. DSCR loans might offer better terms if the property generates rental income.
Most lenders require minimum credit scores of 680-700 for asset depletion loans. Higher scores above 720 typically qualify for better rates and terms.
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.