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Inglewood's diverse real estate market serves many high-net-worth individuals and retirees who hold substantial assets but lack W-2 income. Asset depletion loans provide a path to homeownership by converting liquid assets into qualifying income.
This loan type particularly benefits Los Angeles County residents with investment portfolios, business owners with significant holdings, and those transitioning between careers. Inglewood's proximity to LAX and major employment centers makes it attractive for these borrowers.
Asset depletion financing allows lenders to calculate monthly income by dividing your liquid assets by a set number of months, typically 60-360 depending on the program. This creates qualifying income without requiring pay stubs or tax returns.
Asset Depletion Loans in Inglewood
Borrowers typically need $100,000 to several million in verified liquid assets to qualify. Acceptable assets include stocks, bonds, mutual funds, retirement accounts, and money market funds. Most programs require credit scores of 680 or higher.
Down payment requirements usually start at 20% for primary residences and 25-30% for investment properties. The lender divides your total liquid assets by a specified term to calculate monthly qualifying income.
Asset documentation must be recent, typically within 60 days. You'll provide statements for all accounts used in the calculation. Some programs allow borrowers to keep assets in their accounts while using them for qualification.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Inglewood.
Inglewood's diverse real estate market serves many high-net-worth individuals and retirees who hold substantial assets but lack W-2 income. Asset depletion loans provide a path to homeownership by converting liquid assets into qualifying income.
This loan type particularly benefits Los Angeles County residents with investment portfolios, business owners with significant holdings, and those transitioning between careers. Inglewood's proximity to LAX and major employment centers makes it attractive for these borrowers.
Asset depletion financing allows lenders to calculate monthly income by dividing your liquid assets by a set number of months, typically 60-360 depending on the program. This creates qualifying income without requiring pay stubs or tax returns.
Asset depletion loans fall under non-QM lending, meaning fewer institutions offer them compared to conventional mortgages. Most major banks don't provide these programs, making mortgage brokers valuable for accessing specialized lenders.
California has numerous non-QM lenders serving Los Angeles County, but programs vary significantly in terms, asset calculation methods, and rate structures. Some lenders are more aggressive with asset types they'll accept.
Interest rates on asset depletion loans typically run 1-3% higher than conventional mortgages. Rates vary by borrower profile and market conditions, with better terms available for larger down payments and higher credit scores.
The calculation method matters significantly for borrowers. Some lenders use a 60-month divisor while others stretch to 120 or 360 months, dramatically changing your qualifying income amount from the same asset pool.
Many Inglewood buyers overlook which assets qualify. While most lenders accept taxable investment accounts, some also consider 70% of retirement account balances or annuity values. Knowing these nuances maximizes your purchasing power.
Documentation preparation makes the difference between smooth approval and delays. Organize all asset statements, provide clear paper trails for large deposits, and have explanations ready for unusual account activity.
Bank Statement Loans work better for self-employed borrowers with consistent business revenue but fewer liquid assets. Asset depletion loans suit those with substantial savings but irregular or minimal current income.
DSCR Loans make sense for investors buying rental properties, as they qualify based on property cash flow rather than borrower income. Asset depletion loans remain the better choice for primary residences or when investment income is limited.
1099 Loans benefit independent contractors with documented contract income. If you have both significant assets and 1099 income, comparing both programs often reveals which provides better loan terms for your situation.
Inglewood's real estate market includes everything from condos near SoFi Stadium to single-family homes in established neighborhoods. Asset depletion loans work across all property types, though condo financing may require additional HOA documentation.
Los Angeles County transfer taxes and closing costs can be substantial. With asset depletion loans requiring larger down payments, ensure you maintain sufficient liquid reserves beyond your down payment and closing costs.
The city's ongoing development near major sports venues attracts investors and professionals relocating from other states. Asset depletion financing helps these buyers qualify quickly without establishing California employment history first.
Most lenders accept stocks, bonds, mutual funds, and money market accounts at full value. Retirement accounts like 401(k)s and IRAs typically count at 70% of their balance. Some programs also consider annuities and trust accounts.
Lenders divide your total qualified assets by a set number of months, typically 60 to 360. For example, $600,000 in assets divided by 120 months equals $5,000 monthly qualifying income. Each lender uses different divisors.
Yes, asset depletion loans work for investment properties, though down payment requirements increase to 25-30%. Some lenders also require higher asset balances and credit scores for non-owner-occupied properties.
No, assets remain in your accounts. Lenders verify balances through recent statements and use them to calculate qualifying income. You keep full control of your investments throughout the loan term.
Most programs require minimum credit scores of 680-700. Some lenders offer programs down to 660 with compensating factors like larger down payments or higher asset reserves. Better scores secure more favorable rates.