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El Monte home prices sit below LA County's median, making this market accessible for asset-rich buyers. Retirees and investors with substantial savings often struggle with traditional income requirements here.
Asset depletion loans let you qualify using your bank and investment accounts. We divide your liquid assets by 360 months to create a qualifying income stream.
This works well for El Monte's growing population of early retirees and business owners who sold companies. Your portfolio becomes your income documentation.
Asset Depletion Loans in El Monte
You need $500,000 minimum in liquid assets for most asset depletion programs. That includes checking, savings, stocks, bonds, mutual funds, and retirement accounts.
Credit requirements start at 660, sometimes 680 for larger loans. Down payment typically runs 20-30% depending on your credit profile and asset depth.
Real estate holdings don't count toward your asset total. Only liquid or semi-liquid accounts that we can verify through statements work for qualification.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in El Monte.
El Monte home prices sit below LA County's median, making this market accessible for asset-rich buyers. Retirees and investors with substantial savings often struggle with traditional income requirements here.
Asset depletion loans let you qualify using your bank and investment accounts. We divide your liquid assets by 360 months to create a qualifying income stream.
This works well for El Monte's growing population of early retirees and business owners who sold companies. Your portfolio becomes your income documentation.
Only non-QM lenders offer asset depletion programs. Fannie Mae and Freddie Mac don't allow this qualification method, which means higher rates than conventional loans.
We work with about 15 lenders who price asset depletion deals. Rate spreads vary 75-150 basis points based on your asset-to-loan ratio and credit score.
Some lenders cap these loans at $2 million. Others go higher if you show 3-5 times the loan amount in qualifying assets.
Most buyers who think they need asset depletion actually qualify for bank statement loans with lower rates. We run both scenarios before you commit to a higher-rate product.
Your asset-to-loan ratio drives everything. Show $2 million in assets for a $600K loan and you'll get pricing a full point better than minimum qualifiers.
Mixing retirement and non-retirement accounts works, but some lenders haircut IRA balances by 20-30%. Front-load your application with taxable accounts when possible.
Bank statement loans work better if you have any business income at all. Asset depletion makes sense when you're truly retired or living off investments.
Foreign national loans require similar down payments but don't need US credit. DSCR loans work if you're buying rental property—they ignore personal income entirely.
1099 loans suit gig workers with recent tax returns. Asset depletion is your fallback when income documentation creates problems across all traditional programs.
El Monte's median price point means you need less total assets than coastal LA cities. A $700K purchase requires roughly $1.4 million in qualifying assets at 25% down.
Many El Monte buyers come from families who sold businesses or inherited property. This loan type fits that demographic better than traditional employment verification.
The city's proximity to downtown LA attracts retirees downsizing from pricier areas. Your Pasadena equity converts to El Monte purchasing power through asset depletion.
Checking, savings, money market, stocks, bonds, mutual funds, and retirement accounts all work. Real estate equity and business ownership don't qualify.
Yes, but lenders often discount the balance by 20-30% to account for early withdrawal penalties. Taxable accounts get full credit without haircuts.
Lender divides your total liquid assets by 360 to create monthly qualifying income. $1.8M in assets becomes $5,000 monthly income for qualification.
Yes, expect 0.75-1.50% above conventional rates. Higher asset multiples and stronger credit get you closer to the low end of that range.
Most lenders won't combine asset depletion with other income sources. If you have rental income, a DSCR loan might work better and cost less.
No, assets stay invested. You only need bank statements proving the balances exist and have been stable for 2-3 months before application.