Loading
Compton buyers with significant liquid assets but irregular income often hit walls with traditional lenders. Asset depletion loans treat your investment accounts as monthly income streams.
We're seeing these loans work for retirees, business owners with holdings in stocks or bonds, and foreign nationals parking wealth in U.S. real estate. Your bank balance becomes your qualification tool.
Lenders divide your total liquid assets by 360 months to calculate monthly qualifying income. A borrower with $1.8M in accounts shows $5,000 monthly income for qualification purposes.
You need at least $500K in liquid assets for most programs. Credit scores start at 660, though 700+ gets better pricing. Rates vary by borrower profile and market conditions.
Asset depletion sits in the non-QM space, so you won't find it at Chase or Wells Fargo. We work with specialized lenders who underwrite these daily and understand the nuances.
Each lender counts assets differently. Some accept retirement accounts at 70% value while others go full value on post-tax holdings. Shopping multiple programs matters significantly here.
Most Compton buyers don't need asset depletion loans, but for those who do, this program solves problems no conventional loan can touch. I've closed deals for business owners selling companies and retirees living off portfolios.
The mistake borrowers make is mixing liquid and illiquid assets. Real estate equity doesn't count. Retirement funds get discounted. Cash, stocks, and bonds in accessible accounts are what qualify you.
Bank statement loans make sense if you run a business with consistent deposits. Asset depletion works better when your wealth sits in investments, not operating accounts.
DSCR loans beat asset depletion for investment properties since rental income qualifies you. Save asset depletion for primary residences or scenarios where rental projections fall short.
Compton home prices create an interesting fit for asset depletion. You're not trying to finance a $3M coastal property where lenders get nervous about liquidity depth.
We see these loans work well for buyers who sold property elsewhere or received inheritance funds. The moderate price point means your asset balance goes further in qualification calculations.
Most lenders require $500K minimum in liquid assets. The exact amount depends on the purchase price and your debt obligations.
Yes, but most lenders discount them by 30%. A $1M IRA becomes $700K for qualification purposes.
Rates run 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions based on your credit and asset depth.
Yes. Some borrowers layer Social Security or pension income with asset depletion to strengthen their application.
Expect 30-45 days. Documentation is lighter than traditional loans but appraisal timelines still apply.
Asset Depletion Loans in Compton