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Claremont attracts retirees, business owners, and high-net-worth buyers who don't fit traditional income models. Asset depletion loans let you qualify based on investment accounts, not W-2s.
This college town has steady demand from buyers downsizing from larger estates or relocating for proximity to the Claremont Colleges. Many have significant assets but irregular earned income.
Asset depletion works by dividing your liquid assets by 360 months to create a qualifying income stream. A $2 million portfolio generates roughly $5,500 monthly income for qualification purposes.
Most asset depletion programs require 20-30% down and credit scores above 680. Lenders want to see stable asset balances over several months, not recent deposits.
You can use stocks, bonds, mutual funds, and retirement accounts. Most lenders count 70-100% of liquid assets depending on account type. Real estate equity doesn't count.
Expect rates 1-2 points higher than conventional loans. You're paying for flexibility. Recent volatility in your portfolio won't disqualify you if your statements show sufficient depth.
Asset depletion sits in the non-QM space. Not every lender offers it. We work with about 15 wholesale lenders who actively fund these deals in California.
Pricing varies significantly by lender. Some cap loan amounts at $2 million. Others go higher but require larger reserves. Rate quotes mean nothing without seeing the full underwriting matrix.
Underwriting takes 3-4 weeks typically. These aren't automated approvals. A human reviews your asset statements and calculates qualifying income manually.
I see two borrower types use asset depletion in Claremont: retirees selling larger homes in Pasadena or San Marino, and business owners who shelter income through entities. Both have money but can't document traditional income.
The biggest mistake is liquidating assets to make a larger down payment. Keep your portfolio intact. That $500K in stocks qualifies you for more loan than converting it to cash for down payment.
If you have rental properties producing income, DSCR loans usually beat asset depletion on pricing. If you're 1099 with erratic deposits, bank statement loans work better. Asset depletion shines when you're truly retired or living off investments.
Bank statement loans require 12-24 months of business deposits. Asset depletion needs zero income documentation. If your accounts show steady six-figure balances, asset depletion gets you approved faster.
Foreign national loans work for non-citizens but require 30-40% down. Asset depletion accepts US citizens with just 20% down and better rates. If you have citizenship and assets, this costs less.
Conventional loans cap at $1,249,125 in Los Angeles County for 2026. Asset depletion goes higher with no conforming limits. You're shopping in Claremont's nicer neighborhoods where homes exceed conventional caps.
Claremont's housing stock skews older with many properties needing updates. Asset depletion lenders scrutinize property condition more than conventional lenders. Factor renovation costs into your asset calculations.
Properties near the colleges have steady rental demand if you decide to convert to investment later. Starting with asset depletion as primary residence, then converting, works if your lender allows it.
HOA properties in planned communities like Claraboya or Vive get cleaner appraisals than vintage homes on tree streets. Cleaner appraisals mean fewer conditions and faster closings on non-QM deals.
With 25% down, you need roughly $1.8-2M in liquid assets to qualify for the $1.125M loan. Lenders divide assets by 360 months to create qualifying income.
Yes, most lenders count 70-100% of retirement account balances. You don't need to withdraw funds, just show the balance on statements.
Expect rates 1-2 percentage points higher. You're paying for the flexibility to qualify without income documentation or employment verification.
No post-closing requirements exist. Once you close, you control your assets freely without lender restrictions.
Lenders look at recent average balances, not daily fluctuations. A portfolio that bounces between $1.8-2.2M still qualifies consistently.
Asset Depletion Loans in Claremont