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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.
Asset Depletion Loans in El Segundo
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.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options 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.
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.