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Calabasas attracts high-net-worth individuals who may not fit traditional lending criteria. Many homeowners here have significant assets but irregular income patterns.
Asset depletion loans serve this unique market well. They let borrowers qualify based on liquid assets rather than W-2 income or tax returns.
This loan type works particularly well in upscale Los Angeles County communities. Entrepreneurs, retirees, and investors find this option ideal for their financial situations.
Lenders calculate your qualifying income by dividing total liquid assets by the loan term. Common terms range from 60 to 360 months, affecting your monthly income calculation.
Eligible assets typically include stocks, bonds, mutual funds, and savings accounts. Some lenders also accept retirement accounts like 401(k)s and IRAs with certain restrictions.
Most programs require substantial liquid assets, often $500,000 or more. Credit scores usually need to be 680 or higher, though requirements vary by lender.
Asset depletion loans fall under the non-QM mortgage category. They offer flexibility that conventional loans cannot provide to asset-rich borrowers.
Rates vary by borrower profile and market conditions. Expect rates higher than conventional mortgages due to the specialized underwriting involved.
Down payments typically start at 20% but may be higher based on loan amount. Larger down payments often secure better terms and interest rates.
Working with an experienced mortgage broker is crucial for asset depletion loans. These programs require specialized knowledge of documentation and lender requirements.
Different lenders count assets differently and use varying calculation methods. A broker can match your specific situation to the most favorable lender program.
Proper asset documentation is essential for smooth processing. Bank statements, brokerage statements, and retirement account statements must be current and complete.
Asset depletion loans complement other non-QM options available in Calabasas. Bank statement loans work better if you have strong business income but complex tax returns.
DSCR loans suit investment properties where rental income covers the mortgage. Foreign national loans serve non-U.S. citizens purchasing property here.
1099 loans benefit self-employed borrowers with consistent contractor income. Each program serves different borrower profiles and financial situations.
Calabasas real estate often carries premium price tags. Asset depletion loans help qualified buyers access these properties without traditional income documentation.
The city's affluent demographic includes many business owners and entertainment industry professionals. These individuals often have substantial assets but non-traditional income streams.
Los Angeles County's diverse lending landscape offers numerous asset depletion programs. Local brokers understand the specific needs of Calabasas homebuyers and investors.
Qualifying assets typically include checking and savings accounts, stocks, bonds, and mutual funds. Many lenders also accept retirement accounts like 401(k)s and IRAs, though some apply discounts to these balances.
Lenders divide your total liquid assets by the loan term in months. This creates a monthly income figure used for qualification. Longer terms create higher qualifying income amounts.
Yes, many lenders offer asset depletion loans for investment properties. However, DSCR loans may be better suited if the property generates strong rental income.
Most lenders require credit scores of 680 or higher. Some programs accept scores as low as 660 with larger down payments or stronger asset positions.
Yes, rates are typically higher due to the specialized underwriting. Rates vary by borrower profile and market conditions. Stronger assets and credit often secure better terms.
Asset Depletion Loans in Calabasas