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Asset Depletion Loans in Hermosa Beach
Hermosa Beach attracts retirees and wealthy buyers who own substantial assets but lack W-2 income. Traditional lenders reject these borrowers despite seven-figure portfolios.
Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of paystubs. Lenders divide your liquid assets by 360 months to calculate qualifying income.
This works perfectly for tech executives cashing out, early retirees, and trust fund beneficiaries buying beachfront property. The loan treats your investment account like a monthly paycheck.
You need significant liquid assets to make this work. Most lenders want at least $500K in verifiable accounts after your down payment and reserves.
Credit minimums sit at 680, though some lenders go to 660 for larger asset pools. You'll put down 20-30% depending on property type and total assets.
Acceptable assets include checking, savings, stocks, bonds, and retirement accounts. Primary residence equity and illiquid holdings don't count toward qualification.
Only non-QM lenders offer asset depletion programs. Your neighborhood bank can't do this loan even if you've banked there for decades.
Different lenders use different depletion formulas. Some divide assets by 240 months, others by 360 or 480. That math drastically changes your qualifying power.
Portfolio lenders offer the most flexibility on property types and asset verification. They'll look at your full financial picture instead of running automated underwriting.
I structure these deals for Hermosa Beach buyers monthly. The trick is maximizing your asset calculation while keeping enough reserves post-closing.
Timing matters. Pull statements when account balances peak, not after market corrections. Lenders use a 60-90 day average, so recent deposits help.
Most borrowers don't realize 401(k)s and IRAs count. You're not withdrawing funds, just using account value for qualification. That opens this program to way more people.
Rates run 1.5-3% above conventional loans. You're paying for underwriting flexibility and the lender's portfolio risk.
Bank statement loans work better if you have business income but poor tax returns. Asset depletion fits retirees and trust fund situations.
Foreign national loans require different down payments but allow non-U.S. assets. DSCR loans only work for investment properties, not primary residences.
This program beats taking 401(k) withdrawals or liquidating investments. You preserve portfolio growth while securing financing.
Hermosa Beach properties start around $1.5M for condos and hit $10M+ for oceanfront houses. Asset depletion works at any price point if your portfolio supports it.
The city's appeal to early-retired tech workers and equity-rich executives makes this a natural fit. You sold your company or vested RSUs but show zero W-2 income.
Beachfront properties under $2M are rare. Most buyers here need jumbo financing, which combines naturally with asset-based qualification.
HOA dues in Hermosa Beach condos run $400-800 monthly. Lenders include these in debt ratios, so they affect your qualifying asset threshold.
After 25% down and six months reserves, you need roughly $1.2M in liquid assets. Exact amounts depend on lender depletion formulas and your other debt.
Yes, lenders count IRA balances for qualification without requiring withdrawals. You're not touching the money, just proving you own it.
Most lenders allow investment properties but prefer primary residences. Down payments increase to 30% for non-owner occupied properties.
Lenders average balances over 60-90 days. Minor fluctuations don't matter, but major corrections can affect qualification.
Expect 30-45 days from application to closing. Asset verification adds time versus conventional loans.
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.