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Asset Depletion Loans in La Canada Flintridge
La Cañada Flintridge attracts retirees and high-net-worth buyers with significant assets but minimal W-2 income. Asset depletion loans let you qualify using investment accounts instead of paystubs.
This foothill community's premium housing stock appeals to buyers who've built wealth through equity, retirement funds, or portfolios. Traditional income verification doesn't capture their actual financial strength.
Asset depletion works by dividing your liquid assets by 360 months to create a qualifying income stream. A $2M portfolio becomes roughly $5,500 monthly income for qualification purposes.
You'll need $500K minimum in liquid assets across accessible accounts. Retirement funds, brokerage accounts, and cash reserves all count toward qualification.
Most lenders require 640-680 credit scores and 20-30% down payment. The larger your asset base, the more aggressive lenders get with terms and rates.
Assets must be documented with recent statements showing account balances. Funds earmarked for down payment don't count toward the depletion calculation.
Only non-QM lenders offer asset depletion programs. Each has different asset multipliers and acceptable account types, making broker access to multiple lenders critical.
Some lenders divide by 360 months while others use 240 or 120. That math difference dramatically changes your qualifying income on the same asset base.
Interest rates run 1-2% above conventional conforming loans. Borrowers with $3M+ in assets often get better pricing than those at the $500K minimum threshold.
La Cañada buyers often don't realize they can use retirement accounts for qualification without withdrawing funds. The accounts just need to be accessible, not liquidated.
I've seen borrowers with $4M in assets get declined by their bank, then easily approved through a non-QM lender with proper documentation. Banks don't understand this product.
Timing matters—get asset statements dated within 60 days of application. Market volatility can affect your qualifying income if accounts fluctuate significantly between statement dates.
Bank statement loans work better if you run business income through accounts with consistent deposits. Asset depletion suits retirees or trust fund beneficiaries with minimal cashflow.
Foreign national loans require similar down payments but don't provide the income calculation flexibility. DSCR loans only work for investment properties, not primary residences.
If you have both W-2 income and substantial assets, conventional financing gives better rates. Asset depletion makes sense when traditional income verification fails to capture your financial picture.
La Cañada's housing stock starts around $1.5M, requiring substantial assets even with maximum leverage. Most deals here need $2M+ in documented accounts for comfortable qualification.
The city's retiree demographic makes asset depletion particularly relevant. Former executives with pension income often have significant portfolios but reduced W-2 earnings that don't reflect actual wealth.
Proximity to Pasadena and Glendale means competitive market conditions. Asset depletion loans process in 30-45 days, longer than conventional but fast enough for most negotiations.
Stocks, bonds, mutual funds, money market accounts, and accessible retirement accounts all qualify. Funds allocated for down payment and closing costs don't count toward qualifying income.
Yes, the account just needs to be accessible for qualification purposes. You don't liquidate anything—lenders calculate hypothetical monthly income based on the balance divided by loan term.
Expect rates 1-2 percentage points above conventional conforming loans. Borrowers with larger asset bases and higher credit scores get better pricing within that range.
Most put down 25-30% to improve rates and reduce monthly payments. Larger down payments also strengthen your qualification when assets are near minimum thresholds.
Yes, lenders typically require 6-12 months of reserves beyond your down payment. These reserves must remain in accounts post-closing and can't be included in depletion calculations.
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.