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Asset Depletion Loans in El Segundo
El Segundo's proximity to LAX and aerospace employers attracts retired executives and entrepreneurs with substantial liquid assets. These buyers often lack traditional W-2 income but maintain significant investment portfolios.
Asset depletion loans let lenders count your stocks, bonds, and retirement accounts as qualifying income. This works well in El Segundo where buyers frequently shift from high salaries to wealth preservation mode.
Lenders divide your liquid assets by 360 months to calculate monthly qualifying income. A borrower with $2 million in stocks generates $5,556 monthly income for qualification purposes.
You'll need 620+ credit and significant reserves after closing. Most programs require keeping 20-30% of assets untouched as post-close reserves, not counting toward income calculation.
Retirement accounts like 401(k)s and IRAs qualify, though lenders typically discount them by 30% due to early withdrawal penalties. Taxable brokerage accounts and savings count at full value.
Asset depletion falls under non-QM lending, which means fewer lenders and higher rates than conventional loans. Rates typically run 1.5-3% above agency conforming rates.
SRK Capital works with 15+ asset depletion lenders who vary significantly on asset calculation methods. Some accept stocks at 70% value due to market volatility while others count them at 100%.
Portfolio lenders change programs frequently based on their appetite for this product. What's available this month may shift by next quarter, making broker access to multiple lenders essential.
Most borrowers using asset depletion in El Segundo are buying $1M-$2M homes after cashing out of aerospace positions or selling businesses. They're asset-rich but income-poor on paper.
We structure these deals to minimize the asset draw. Larger down payments reduce loan amounts, which means less monthly income needed from your portfolio. A 40% down buyer needs half the qualifying assets of someone putting 20% down.
The documentation process takes longer than conventional loans. Expect to provide 2-3 months of statements for every account used for qualification, plus proof of asset sourcing if funds moved recently.
Bank statement loans work better if you're self-employed with business revenue flowing through accounts. Asset depletion makes sense when you're truly retired or living off investments without business operations.
Foreign national loans suit non-US citizens, but asset depletion serves US citizens and permanent residents with domestic assets. If you have both income and assets, conventional loans will cost less.
El Segundo's aerospace concentration means many buyers transitioning from Lockheed Martin, Raytheon, or Boeing have substantial 401(k) balances. These retirement accounts work for asset depletion despite early withdrawal penalties reducing their calculated value.
The city's small residential footprint and proximity to beaches drive property values up. Higher home prices mean you'll need more assets to qualify compared to inland LA County cities.
With 25% down, you'd need roughly $1.5-$2M in liquid assets after reserves. Lenders calculate your loan payment needs, divide by the monthly income generated from your portfolio, and require adequate reserves.
Yes, but lenders discount retirement accounts by 30% due to potential penalties. A $1M 401(k) counts as $700K toward your asset calculation, generating about $1,944 in monthly qualifying income.
Real estate equity, business interests, and illiquid investments don't count. Lenders want assets you can access within 30 days: stocks, bonds, mutual funds, savings, CDs, and money market accounts.
Rates run 1.5-3% higher than conventional financing. This reflects the non-QM nature of asset depletion lending and the perceived risk of portfolio-based income versus steady employment.
Expect 45-60 days from application to close. Every asset account needs documentation, and underwriters verify asset stability over 2-3 months of statements before approval.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.