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Asset Depletion Loans in Glendale
Glendale has serious money sitting in brokerage accounts. A city full of entertainment executives, studio owners, and tech consultants who look broke on tax returns but sit on seven figures in liquid assets.
Asset depletion loans let you qualify using those investment accounts instead of W-2s or tax returns. Lenders divide your liquid assets by 360 months and treat that as monthly income for qualification purposes.
This works well for Glendale's demographics—professionals who defer income, retirees with substantial portfolios, and business owners who minimize taxable earnings. The area's $800k+ median price range means most buyers here have wealth, just not traditional paystubs.
You need significant liquid assets—typically $500k minimum after down payment and reserves. Credit standards sit around 680-700 depending on the lender and loan-to-value ratio.
Qualifying assets include retirement accounts, stocks, bonds, mutual funds, and cash savings. Real estate equity doesn't count unless you're liquidating it. Lenders want to see seasoned funds, not sudden deposits.
Down payments start at 20% for single-family homes. The bigger your asset base relative to loan amount, the better your rate and terms become.
Asset depletion sits in the non-QM space, which means fewer lenders and wider rate spreads. Not every wholesale partner offers this program, and the ones that do have different asset calculation methods.
Some lenders discount retirement account values by 30% for early withdrawal penalties. Others accept full value if you're 59½ or older. These differences matter when you're qualifying for a $900k Glendale purchase.
Rate pricing runs 0.75% to 1.5% above conventional rates. Rates vary by borrower profile and market conditions, but expect the premium when you're avoiding income documentation.
Most Glendale buyers using asset depletion have $2M+ portfolios and are buying $1.2M properties. The math works cleanly. When assets barely exceed the qualification threshold, approvals get dicey.
Time your application carefully if you hold volatile stocks. Lenders require updated statements at closing, and a 15% market drop can kill your approval if you're borderline on ratios.
I've seen three deals fall apart because borrowers assumed IRAs counted at full value. Check penalty calculations before you commit to a purchase price. The difference between 70% and 100% asset valuation changes your buying power by $200k.
Bank statement loans work better if you have business revenue but messy deductions. Asset depletion suits retirees and investors with no income flow at all.
DSCR loans make sense for rental properties where the asset is the investment. Asset depletion handles primary residences when your portfolio sits in stocks, not real estate.
1099 loans require demonstrating income consistency. Asset depletion ignores income entirely—you're qualifying purely on net worth.
Glendale's hillside properties often appraise conservatively, which matters when you're putting 20% down and need the LTV to hit targets. Confirm appraiser expectations before you go hard on a Verdugo Woodlands purchase.
Los Angeles County transfer taxes add cost at closing. Factor those into your liquid asset requirements—lenders want to see reserves after you've paid all fees and taxes.
The city's condo market includes older buildings that some non-QM lenders won't touch. If you're buying a unit built before 1980, confirm your asset depletion lender approves the project first.
Stocks, bonds, mutual funds, money market accounts, CDs, and retirement accounts. Real estate equity doesn't count unless you're in the process of liquidating it.
No, you don't liquidate the assets. Lenders just divide the balance by 360 months to calculate theoretical monthly income for debt-to-income ratios.
Most lenders discount active 401k balances by 30% for early withdrawal penalties. IRAs and accounts you control fully get better treatment depending on your age.
Most lenders require 680-700 minimum. Higher scores above 720 unlock better rates and lower down payment requirements in some programs.
Plan for 30-45 days. Non-QM loans take longer than conventional because fewer lenders handle them and underwriting is more manual and detailed.
Some lenders allow it, but most use asset depletion only when traditional income documentation doesn't work. Mixing methods complicates underwriting unnecessarily.
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.