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Asset Depletion Loans 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.
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%.
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.
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.