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Commerce sits in the heart of Los Angeles County with diverse real estate opportunities. The city attracts investors and business owners seeking flexible financing options.
Asset depletion loans serve borrowers who have substantial liquid assets but lack traditional income documentation. This non-QM solution opens doors for retirees, entrepreneurs, and high-net-worth individuals.
Commerce's strategic location near major transportation corridors makes it attractive for commercial and residential investment. Asset-based financing helps qualified buyers compete in this dynamic market.
Asset Depletion Loans in Commerce
Lenders calculate your qualifying income by dividing your liquid assets by a set number of months, typically 60 to 360. The larger your asset base, the higher your qualifying income becomes.
Eligible assets usually include checking accounts, savings, money market funds, stocks, bonds, and retirement accounts. Real estate equity and business assets generally don't qualify for asset depletion calculations.
Most programs require at least 20% down payment and credit scores above 620. Rates vary by borrower profile and market conditions, with pricing reflecting the non-traditional qualification method.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Commerce.
Commerce sits in the heart of Los Angeles County with diverse real estate opportunities. The city attracts investors and business owners seeking flexible financing options.
Asset depletion loans serve borrowers who have substantial liquid assets but lack traditional income documentation. This non-QM solution opens doors for retirees, entrepreneurs, and high-net-worth individuals.
Commerce's strategic location near major transportation corridors makes it attractive for commercial and residential investment. Asset-based financing helps qualified buyers compete in this dynamic market.
Asset depletion loans come from specialized non-QM lenders who understand alternative documentation. These lenders focus on the complete financial picture rather than traditional employment verification.
Working with an experienced mortgage broker provides access to multiple lenders with varying asset depletion guidelines. Different lenders offer different divisor periods and asset inclusion rules, affecting your qualifying amount.
Commerce borrowers benefit from broker relationships that match specific asset profiles with appropriate lenders. This personalized approach ensures the strongest possible loan terms for your situation.
Asset depletion loans work exceptionally well for borrowers transitioning between career phases or managing wealth outside traditional employment. The key is presenting your assets in the most favorable light to underwriters.
Documentation requirements include recent bank statements, investment account statements, and retirement account statements. Expect lenders to verify asset seasoning and require reserves after closing.
Strategic timing matters when applying for asset depletion financing. Large asset transfers or withdrawals shortly before application can raise questions and delay approval.
Asset depletion loans differ from bank statement loans, which use deposits to prove income. They also contrast with DSCR loans that rely on rental property cash flow rather than borrower income.
Related loan options include 1099 loans for independent contractors and foreign national loans for non-U.S. citizens. Each program serves different borrower profiles with unique qualification paths.
The right loan type depends on your specific financial situation and documentation availability. Asset depletion shines when you have substantial savings but minimal reportable income.
Commerce features a mix of industrial, commercial, and residential properties that attract diverse buyer types. The city's proximity to downtown Los Angeles and major freeways enhances property values.
Local buyers include business owners from Commerce's thriving industrial sector who prefer asset-based qualification. The city's business-friendly environment creates natural demand for flexible financing solutions.
Understanding Los Angeles County transfer taxes and local lending practices helps streamline the loan process. Working with a broker familiar with Commerce transactions provides distinct advantages.
Lenders divide your liquid assets by a set number of months to create qualifying income. This allows you to purchase Commerce property without traditional income documentation.
Checking, savings, money market accounts, stocks, bonds, and retirement accounts typically qualify. Real estate equity and business assets usually don't count toward the calculation.
Most lenders require at least 20% down payment for asset depletion loans. Higher down payments may improve your rate and terms.
Yes, asset depletion loans are ideal for retirees with substantial savings but limited monthly income. Your accumulated wealth becomes your qualifying income.
Processing typically takes 30-45 days, similar to other non-QM loans. Complete asset documentation and clear statements expedite approval.