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Hidden Hills attracts high-net-worth buyers who don't fit traditional income boxes. Retired executives, business owners with significant liquidity, and investors often have millions in assets but minimal reportable income.
Asset depletion loans let you qualify using your portfolio instead of pay stubs. Lenders divide your liquid assets by 360 months to calculate qualifying income—perfect for Hidden Hills' gated community where traditional employment is the exception.
Asset Depletion Loans in Hidden Hills
You need substantial liquid assets—typically $500k minimum to make the math work. Lenders count cash, stocks, bonds, and retirement accounts at 70% value for IRAs and 401ks.
Credit requirements sit around 680 minimum. Some lenders want 12+ months reserves after closing. The formula is simple: total liquid assets divided by 360 equals your monthly qualifying income.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Hidden Hills.
Hidden Hills attracts high-net-worth buyers who don't fit traditional income boxes. Retired executives, business owners with significant liquidity, and investors often have millions in assets but minimal reportable income.
Asset depletion loans let you qualify using your portfolio instead of pay stubs. Lenders divide your liquid assets by 360 months to calculate qualifying income—perfect for Hidden Hills' gated community where traditional employment is the exception.
You need substantial liquid assets—typically $500k minimum to make the math work. Lenders count cash, stocks, bonds, and retirement accounts at 70% value for IRAs and 401ks.
Only non-QM lenders offer asset depletion programs. We work with 15-20 who specialize in these loans—each has different asset calculation methods and maximum loan amounts.
Some lenders cap loans at $2 million. Others go to $4 million for borrowers with exceptional profiles. Rate spreads vary by 0.5-1.0% depending on how aggressively each lender discounts retirement accounts.
Most Hidden Hills buyers using asset depletion have $2-5 million in portfolios. They're shocked when a $3 million portfolio only qualifies them for $800k in loan—the 360-month divisor is conservative by design.
Smart move: deplete assets for qualification, then pay down the mortgage after closing if you want. The loan doesn't restrict what you do with your money post-funding. We also layer this with bridge loans when clients are mid-liquidity event.
Bank statement loans work better if you have business income flowing through accounts. DSCR loans beat asset depletion for investment properties where rent covers the payment.
Asset depletion shines when you're fully retired or living off dividends. No tax returns, no bank statements, no rent rolls—just proof of liquid holdings. Rates run 0.25-0.75% higher than bank statement programs.
Hidden Hills properties sit on large lots with premium valuations. Appraisers lean on comps from Calabasas and the western San Fernando Valley—sometimes creating valuation challenges for unique estates.
HOA approval timelines matter here since it's a gated community. Build 45-60 days into your closing timeline. We coordinate with listing agents early to avoid delays that trigger rate lock extensions.
No. Lenders verify you own the assets—you don't touch them. The depletion calculation is just math to create qualifying income on paper.
Cash, stocks, bonds, and mutual funds at 100%. IRAs and 401ks at 70%. Real estate equity and business assets don't count for most lenders.
Most lenders require the down payment to come from your own verified assets. Gifted funds typically don't work with asset depletion programs.
Asset depletion gets you a purchase mortgage. If you already own free and clear, a HELOC or cash-out refi might be simpler and cheaper.
Depends on the lender and your asset level. We've closed $3-4 million loans for borrowers with $8-10 million portfolios.