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Asset Depletion Loans in Clearlake
Clearlake attracts retirees and investors who've accumulated wealth outside traditional W-2 jobs. Many have substantial portfolios but minimal reported income.
Asset depletion loans let you qualify using liquid assets—stocks, bonds, savings accounts. Lenders convert your account balances into theoretical monthly income.
This works well in Lake County's lower-cost market. A $500,000 portfolio can generate enough qualifying income for most Clearlake properties.
You need verifiable liquid assets—typically $200,000 minimum. Stocks, bonds, mutual funds, and savings all count. Retirement accounts like IRAs qualify too.
Lenders divide your total assets by 360 months to calculate monthly income. A $720,000 portfolio equals $2,000 per month in qualifying income.
Credit scores typically need to hit 680 minimum. You'll need 20-25% down on primary homes, higher for investment properties.
Loan amounts usually max around $2 million. The asset-to-income calculation limits how much most borrowers qualify for.
Only specialized non-QM lenders offer asset depletion programs. Your neighborhood bank won't touch these deals—they're not Fannie or Freddie eligible.
Rates run 1.5-2.5 points higher than conventional loans. That spread reflects the non-standard underwriting and increased lender risk.
Each lender calculates depletion differently. Some use straight division by 360. Others apply percentage factors based on asset volatility.
SRK Capital shops 200+ wholesale lenders to find programs that count retirement accounts at favorable rates. The math varies wildly between lenders.
Most Clearlake borrowers using asset depletion fall into two camps: retirees who sold businesses and crypto/tech investors who exited early.
The biggest mistake? Liquidating assets to show bank statements instead. Asset depletion preserves your portfolio while still qualifying you.
Timing matters with market volatility. Lenders use 70-90 day average balances. Apply when your accounts are up, not after a market correction.
We've closed deals where the monthly asset calculation exceeded what the borrower actually withdrew annually. The math works in your favor.
Bank statement loans work better if you have business income but messy tax returns. Asset depletion wins when you're truly retired or living off investments.
DSCR loans beat asset depletion for rental properties. They don't tap your personal assets—the rental income alone qualifies you.
Foreign national programs make more sense if you lack U.S. credit history. Asset depletion requires established domestic credit scores.
1099 loans suit gig workers with decent reported income. Asset depletion serves people who've stopped working entirely or barely show taxable income.
Clearlake's median prices sit well below Bay Area levels. This makes asset depletion extremely viable—you need less portfolio to qualify here.
Lake County sees strong second-home and retirement demand. Asset depletion fits that demographic perfectly since retirees often have assets but no paychecks.
Appraisals can lag in smaller markets. Have recent comps ready, especially on lakefront properties where valuations swing more widely.
Fire insurance costs hit Lake County hard after recent years. Factor those premiums into your debt-to-income calculations—they'll eat into qualifying ratios.
Stocks, bonds, mutual funds, money market accounts, savings, and CDs all qualify. Most lenders include IRA and 401(k) balances at 70% of their value.
Yes, but expect 25-30% down and higher rates. DSCR loans usually offer better terms for pure rental investments since they rely on property income.
Insurance costs factor into debt ratios but don't disqualify you. Get insurance quotes early—high premiums reduce how much home you can afford.
Most don't accept crypto directly. Convert to cash or traditional securities 90 days before applying to include those funds in your asset calculation.
Primary residences require 20-25% down. Second homes need 25-30%. Investment properties typically demand 30% minimum down payment.
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.