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Asset Depletion Loans in Avenal
Avenal's rural Kings County location means limited traditional employment options. Retirees, landowners, and self-employed borrowers here often have significant assets but irregular paychecks.
Asset depletion loans treat liquid accounts as income streams. A $500,000 portfolio becomes qualifying income when divided over the loan term, no job verification needed.
This program fits borrowers who sold businesses, inherited wealth, or built substantial savings. Traditional underwriting rejects these profiles despite strong financial positions.
Most lenders require $500,000 minimum in qualifying liquid assets. Stocks, bonds, retirement accounts, and savings count. Real estate equity and illiquid holdings typically don't.
Credit scores start at 620, though 680+ gets better pricing. Lenders divide your total assets by 360 months (30-year term) to calculate monthly qualifying income.
Down payments run 20-30% depending on property type and credit profile. The larger your asset base relative to loan amount, the better your terms.
Asset depletion sits in non-QM territory. You won't find this at Wells Fargo or Chase. Specialized portfolio lenders and private money sources dominate.
Rates typically run 1-3% above conventional loans. Rates vary by borrower profile and market conditions, but expect 8-10% in current environments.
Prepayment penalties are common for the first 1-3 years. Lenders price these loans for portfolio hold, not immediate resale to Fannie Mae.
Only about 30% of mortgage lenders offer true asset depletion programs. Broker access to multiple non-QM lenders matters significantly here.
I see two Avenal profiles who win with asset depletion: retirees relocating from expensive markets and agricultural business owners with seasonal income. Both have money but look terrible on standard applications.
The calculation matters enormously. A borrower with $600,000 liquid qualifying for a $200,000 loan gets treated differently than someone with the same assets seeking $500,000.
Timing is critical with retirement accounts. Taking distributions to verify liquidity can trigger tax events and penalties. We structure around statement dates and account accessibility.
Most borrowers refinance out within 2-3 years once they establish residence or qualify conventionally. Build this into your cost analysis from day one.
Bank statement loans work better if you have business income to document. Asset depletion makes sense when you genuinely don't have recurring revenue streams.
Foreign national loans require different documentation but accept offshore assets. If your money sits outside the US, explore that route first.
DSCR loans beat asset depletion for investment properties. Rental income qualifies you without touching personal assets or employment history.
1099 loans suit independent contractors with client relationships. Asset depletion is the last resort when you have wealth but zero employment documentation.
Avenal's state prison employment creates steady W-2 income for some residents. Those borrowers should use conventional financing and save the premium rates.
Agricultural land values in Kings County fluctuate with water rights and crop prices. Lenders scrutinize rural property types more carefully in asset depletion scenarios.
Limited comparable sales in Avenal means appraisals take longer and sometimes come in conservative. Budget extra time for underwriting and property valuation.
The small market size means fewer local loan officers understand non-QM products. Broker access to California-wide lender networks becomes essential.
Stocks, bonds, mutual funds, savings accounts, and sometimes retirement accounts qualify. Real estate equity and business interests typically don't count as liquid assets.
Yes, most lenders accept retirement account statements for qualification. You don't need to liquidate, just prove the accounts exist and show their value.
Expect rates 1-3% higher than conventional loans. Closing costs run similar, but prepayment penalties in the first 1-3 years add significant cost if you refinance early.
Most lenders require 1-2 years of returns to verify assets and ensure no tax liens exist. They're not underwriting your income, just confirming asset ownership and tax compliance.
Minimum 20% for primary residences, often 25-30% for rural properties or lower credit scores. Larger down payments improve rates and approval odds significantly.
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.