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Burbank's media and entertainment professionals often hold significant assets in portfolios, not paychecks. Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of W-2 income.
This program works particularly well for retirees, entrepreneurs with large exits, and industry workers with irregular pay structures. Lenders divide your liquid assets by 360 months to calculate qualifying income.
With Burbank's median home prices requiring substantial down payments, this loan type attracts buyers who have the wealth but lack traditional income documentation. You're leveraging what you've already built.
Most lenders require $500K to $2M in liquid assets depending on loan amount. Credit scores start at 660, though 700+ unlocks better rates.
Down payments run 20-30% for primary homes, higher for investment properties. Assets must be in stocks, bonds, mutual funds, or retirement accounts—not tied up in real estate or business equity.
Lenders won't count illiquid assets like property or restricted stock. They want accounts you could theoretically liquidate, even if you never plan to touch them.
Loan amounts top out around $3M with most lenders. A few portfolio lenders go higher, but expect tighter terms above that threshold.
Only about 30 of our 200+ lenders offer true asset depletion programs. The rest stopped during 2023's rate volatility when liquidity tightened.
Rates run 1.5-2.5% above conventional loans. You're paying a premium for underwriting flexibility and zero income verification.
Each lender calculates differently. Some use a 60-month depletion period instead of 360 months, dramatically increasing your qualifying income but requiring massive asset reserves.
Portfolio lenders dominate this space. They hold these loans instead of selling them, which means faster approvals but less rate shopping.
I see two borrower types blow deals. First: people who claim $3M in assets but it's all tied up in their business or real estate. That doesn't work here.
Second: borrowers who wait until the last minute to provide asset documentation. Three months of statements for every account takes time, especially with multiple brokerages.
The lenders who quote lowest rates often have the strictest asset requirements. A higher rate from a flexible lender beats a declined application from a picky one.
Burbank buyers forget about California's property tax and homeowners association fees. Your asset depletion calculation must cover PITI plus reserves—usually six months minimum.
Bank statement loans require two years of business deposits. Asset depletion needs no income proof at all—just account balances.
If you're self-employed with strong revenue, bank statement loans usually cost less. If you're retired or between ventures, asset depletion makes more sense.
DSCR loans work for investment properties using rental income. Asset depletion handles any property type but requires larger reserves.
Foreign national loans demand 30-40% down minimum. Asset depletion starts at 20% for U.S. citizens with the right asset mix.
Burbank's condo market creates problems with asset depletion lenders. Many won't touch units in complexes with pending litigation or less than 10% reserves.
The Magnolia Park and Rancho areas attract this loan type most. Buyers want the school districts but work freelance or consulting gigs that make traditional qualifying tough.
Entertainment industry residuals and deferred compensation don't count as liquid assets. You need straight investment accounts—IRAs, 401Ks, brokerage statements.
Burbank's proximity to studios means many buyers have significant stock compensation. That works if it's vested. If it's restricted or on a vesting schedule, lenders exclude it entirely.
Yes. Lenders count 401K balances without requiring withdrawals. They calculate qualifying income by dividing the balance by 360 months, leaving your retirement intact.
Lenders combine all qualifying accounts. You'll need three months of statements for each one, showing consistent balances without large unexplained deposits or withdrawals.
Expect $200K-$300K down payment plus $1.5M-$2M in liquid assets. Exact requirements vary by lender, credit score, and property type.
Higher asset balances relative to loan amount typically improve pricing. A borrower with $5M qualifying for $800K sees better rates than $1.5M for the same loan.
Yes, but expect 25-30% down minimum and higher rates. Some lenders require 30% reserves on top of standard six-month requirement for investment properties.
Plan for 30-45 days with complete documentation. Delays happen when borrowers have assets across multiple institutions or international accounts requiring verification.
Asset Depletion Loans in Burbank