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Asset Depletion Loans in La Habra Heights
La Habra Heights attracts retirees and high-net-worth buyers with significant portfolios but limited W-2 income. Asset depletion loans let you qualify using retirement accounts, investment portfolios, and liquid assets instead of tax returns.
This hillside community sees buyers with unconventional income profiles — business owners who shelter income, early retirees with substantial savings, and investors managing multiple entities. Traditional underwriting rejects most of them despite strong financial positions.
Lenders calculate monthly income by dividing your liquid assets by a set period, typically 84-360 months depending on the program. A $2 million portfolio divided by 240 months creates $8,333 in qualifying income.
You need substantial reserves — most programs require $500K minimum in depletable assets after down payment and closing costs. Credit scores start at 660, with better rates at 700+. Down payments run 20-30% depending on asset strength.
Only non-QM lenders offer asset depletion, and each uses different depletion formulas. Some count only 70% of stock portfolios due to volatility. Others exclude IRAs entirely while some deplete them over longer periods.
We compare 15+ non-QM lenders who handle asset depletion differently. One might offer 6.5% on a 240-month depletion while another quotes 6.0% using 300 months. The formula directly impacts how much home you qualify for.
Most borrowers bring $1-5 million in assets but show minimal taxable income. They get rejected by Chase and Wells Fargo, then overpay with the first non-QM lender they find. We see rate spreads of 0.75% between best and worst lender matches.
Timing matters — update your account statements right before applying. A $2.1 million balance qualifies differently than $1.9 million. Also, consolidating scattered accounts into one statement simplifies underwriting and speeds approval.
Bank statement loans work better if you have business revenue flowing through accounts. Asset depletion wins when your wealth sits in investments rather than active income streams.
Foreign national loans require larger down payments but accept offshore assets. DSCR loans need rental property income. If you're buying a primary residence with a strong portfolio, asset depletion usually offers the cleanest path.
La Habra Heights properties often exceed $1 million, which requires stronger asset positions than entry-level markets. Buyers here typically bring $2-4 million in depletable assets for homes in the $1.2-1.8 million range.
The hillside location means appraisals take 10-14 days versus 7 in flatter areas. Limited comps can create valuation challenges. Strong assets help if you need to cover an appraisal gap without liquidating long-term investments.
Stocks, bonds, mutual funds, savings, CDs, and money market accounts all count. Most lenders include IRA and 401(k) balances but may use longer depletion periods for retirement accounts.
Yes — lenders use assets for qualification math only. You don't withdraw funds or liquidate investments. Your portfolio stays intact while generating qualifying income on paper.
Expect 1-2% higher than conventional rates. Strong credit and larger down payments reduce the spread. Rates vary by borrower profile and market conditions.
Use your most recent quarterly statement showing the highest balance. Some lenders average the last 2-3 months to smooth volatility. Lock your rate once you have strong statements.
Yes — most lenders require 12-24 months of principal, interest, taxes, and insurance in reserves after closing. These can overlap with assets used for income calculation.
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.