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Huntington Park homebuyers with substantial liquid assets often hit a wall with traditional lending. Retirees, investors, and high-net-worth buyers who don't show W-2 income get declined despite having seven-figure portfolios.
Asset depletion loans solve this by converting your stocks, bonds, and cash into qualifying income. Your $600K portfolio becomes $2,500 monthly income using a 360-month drawdown calculation.
This program fits Huntington Park's diverse buyer pool—business owners liquidating companies, retirees relocating from expensive coastal markets, and foreign nationals maintaining US assets.
Asset Depletion Loans in Huntington Park
Lenders divide your total liquid assets by 360 months to determine monthly qualifying income. That calculation must cover your debt-to-income ratio along with the proposed mortgage payment.
Most asset depletion programs require 620+ credit and 20-30% down. The larger your asset pool, the higher the loan amount you qualify for without touching employment verification.
Retirement accounts like 401(k)s and IRAs count at 70% of value after early withdrawal penalties. Taxable brokerage accounts and cash reserves count at 100%.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Huntington Park.
Huntington Park homebuyers with substantial liquid assets often hit a wall with traditional lending. Retirees, investors, and high-net-worth buyers who don't show W-2 income get declined despite having seven-figure portfolios.
Asset depletion loans solve this by converting your stocks, bonds, and cash into qualifying income. Your $600K portfolio becomes $2,500 monthly income using a 360-month drawdown calculation.
This program fits Huntington Park's diverse buyer pool—business owners liquidating companies, retirees relocating from expensive coastal markets, and foreign nationals maintaining US assets.
Asset depletion sits in the non-QM lending space, so you won't find it at Wells Fargo or Chase. We access 40+ non-QM lenders who specialize in asset-based qualification.
Rate spreads run 1.5-3% above conventional depending on credit profile and loan-to-value. These aren't predatory rates—they reflect the risk of underwriting without income docs.
Some lenders cap asset depletion loans at $2M. Others go to $5M+ for jumbo buyers with substantial portfolios.
We see asset depletion work best for buyers age 55+ who sold businesses or downsized investment portfolios. The asset calculation favors large pools—$500K minimum makes sense for most purchases.
Clients mixing asset depletion with rental income get declined. Lenders want one clean qualification story. Pick assets or pick income documentation, not both.
Timing matters with asset statements. Lenders need 60-90 day seasoning on large deposits. Don't move $300K into your account two weeks before applying—it triggers sourcing requirements.
Bank statement loans cost less if you show 12-24 months of business deposits. Asset depletion makes sense when you have assets but inconsistent cash flow patterns.
DSCR loans work better for pure investment property. Asset depletion fits primary residences and second homes where you're living in the property.
Foreign national loans require 30-40% down and higher rates. If you're a US citizen or permanent resident with assets, asset depletion gives better terms.
Huntington Park's housing stock trends toward smaller single-family homes and duplexes under $700K. Asset depletion works at these price points with $200-300K portfolios.
Los Angeles County transfer taxes and HOA structures don't affect asset qualification, but they impact your debt-to-income calculation. Higher monthly obligations mean you need larger asset pools.
Proximity to Downtown LA and rail access keeps Huntington Park competitive for buyers relocating from Mexico or El Salvador with US-based investment accounts.
Checking, savings, money market accounts, stocks, bonds, mutual funds, and retirement accounts. Real estate equity and business valuations don't count.
No. Gifted funds need 60+ day seasoning and some lenders exclude them entirely from asset depletion calculations.
No. Asset depletion is a qualification method, not a funding requirement. You keep your investments intact and qualify based on their value.
Expect 1.5-3% higher rates. A 7% conventional loan becomes 8.5-10% with asset depletion depending on credit and down payment.
Some lenders allow it, others require asset-only qualification. Mixing income sources often triggers full documentation requirements, defeating the purpose.