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Baldwin Park borrowers with significant assets often hit walls with traditional lenders who demand W-2s. If you've built wealth through investments, inheritance, or business exits, asset depletion lets you qualify using those holdings.
This loan works when your balance sheet tells a better story than your tax returns. Los Angeles County has thousands of asset-rich buyers who can't show conventional income—retirees, trust beneficiaries, and entrepreneurs who reinvest everything.
Asset Depletion Loans in Baldwin Park
Lenders calculate your qualifying income by dividing liquid assets by the loan term. With $1.2M in stocks and a 30-year loan, that's $3,333 monthly income before deductions.
You need substantial holdings to make the math work. Most programs require $500K minimum in verifiable accounts—checking, savings, stocks, bonds, or mutual funds. Retirement accounts qualify but often get discounted 30-40%.
Credit requirements stay firm at 660-680 minimum. Asset depletion solves income documentation problems, not credit issues. Down payments start at 20% for primary homes, higher for investment properties.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Baldwin Park.
Baldwin Park borrowers with significant assets often hit walls with traditional lenders who demand W-2s. If you've built wealth through investments, inheritance, or business exits, asset depletion lets you qualify using those holdings.
This loan works when your balance sheet tells a better story than your tax returns. Los Angeles County has thousands of asset-rich buyers who can't show conventional income—retirees, trust beneficiaries, and entrepreneurs who reinvest everything.
Lenders calculate your qualifying income by dividing liquid assets by the loan term. With $1.2M in stocks and a 30-year loan, that's $3,333 monthly income before deductions.
Only non-QM lenders offer asset depletion programs. You won't find this at Chase or Bank of America. Each lender uses different formulas for calculating qualifying income and acceptable asset types.
Some lenders divide assets by 360 months, others use 240 or 180. That calculation difference changes your qualifying power dramatically. One lender might accept cryptocurrency holdings, another won't touch them.
Rates typically run 1-2% above conventional loans. Your asset depth affects pricing—more reserves mean better terms. Expect 30-60 day closings as underwriters verify every account statement.
I see asset depletion work best for two groups: retirees living off investments and business owners who write off everything. Both have money but zero qualifying income on paper.
The common mistake is assuming all assets count equally. Stocks and bonds work. Your paid-off Baldwin Park rental doesn't. Neither does equity in your business or art collection.
Shop lenders hard on this product. I've seen qualifying income calculations vary by $2,000 monthly between lenders using the same $800K portfolio. That difference determines if you qualify or not.
Bank statement loans cost less if you can show 12-24 months of deposits. Asset depletion makes sense when your money sits still in accounts rather than flowing through your business.
DSCR loans beat asset depletion for investment properties if the rent covers the payment. You avoid depleting assets altogether. But DSCR doesn't help with primary residences.
Some borrowers split strategies—use asset depletion for their Baldwin Park home purchase, then refinance to conventional once they show two years of retirement distributions as qualifying income.
Baldwin Park home values create realistic asset depletion scenarios. You're not financing $2M like coastal LA. A $650K purchase with 20% down needs roughly $900K in assets to qualify comfortably.
Los Angeles County property taxes run about 1.1% annually. That factors into your debt-to-income calculation even with asset-based qualifying. HOA fees in newer Baldwin Park developments add another layer.
Many Baldwin Park buyers using asset depletion come from multigenerational households pooling resources. The account holder must be on the loan, but family money concentrates qualifying power.
Plan on 2-3x the loan amount in liquid assets. For a $500K loan, expect $1M-$1.5M minimum to qualify and keep adequate reserves.
Yes, but lenders discount retirement accounts 30-40% for early withdrawal penalties. A $1M IRA counts as $600K-$700K in qualifying assets.
No. The assets stay in your accounts. Lenders just use the balance to calculate theoretical monthly income for qualifying purposes.
Most lenders accept foreign accounts with proper documentation. You'll need English translations of statements and verification the funds can transfer to the US.
Stated income loans no longer exist after 2008. Asset depletion requires full documentation of assets, just not employment income.