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Asset Depletion Loans in La Mirada
La Mirada sits between Orange and Los Angeles counties with home prices that make it attractive for retirees and investors with substantial liquid assets. The city's affordable single-family homes draw buyers who've sold properties elsewhere or built wealth through investments rather than W-2 jobs.
Asset depletion loans let you qualify based on bank accounts, retirement funds, and investment portfolios instead of paystubs. This matters in La Mirada where many buyers have seven-figure assets but minimal traditional income on tax returns.
Lenders divide your total liquid assets by a set number of months—typically 60 to 360 depending on the program. That monthly figure becomes your qualifying income. You'll need at least $500,000 in verified assets for most La Mirada purchases.
Credit requirements start at 680 for full documentation programs. Some lenders go down to 660 with larger down payments. The asset calculation excludes retirement account penalties, so your actual withdrawal cost doesn't matter for qualification.
Most retail banks won't touch asset depletion loans. You need access to specialized non-QM lenders who price these deals individually. Our network includes 15+ lenders actively funding asset depletion mortgages in California with different asset calculation methods.
Some lenders only count 70% of retirement accounts while others use 100% of non-retirement assets. The calculation method drastically changes your qualifying power. Shopping multiple lenders typically finds $50,000-$100,000 more in buying power.
I close these deals monthly for La Mirada buyers who've retired early or live off investment income. The biggest mistake is assuming all asset depletion programs work the same. One lender might count your Schwab account at 100% while another discounts it to 70%.
Request asset statements dated within 90 days of application. Volatile stock portfolios can work against you if markets drop during underwriting. The best submissions show 12+ months of stable or growing account balances across multiple statements.
Bank statement loans require 12-24 months of deposits showing business revenue. Asset depletion just needs current account values. If you're not self-employed but have substantial savings, asset depletion typically offers cleaner documentation and faster closing.
DSCR loans work better for pure investors buying rental properties. Asset depletion shines for primary residence purchases in La Mirada where you want to retire or semi-retire without landlord responsibilities.
La Mirada home prices run $200,000-$300,000 below neighboring Cerritos or Fullerton. That price gap means your asset portfolio stretches further here. A $1.5 million portfolio might not work in Palos Verdes but easily qualifies you for most La Mirada properties.
The city attracts Orange County workers seeking more affordable housing. If you're relocating from a pricier area with equity to invest, asset depletion lets you buy without establishing new employment income in the region.
Yes, most lenders count 401(k), IRA, and other retirement funds. They calculate based on gross balance without factoring early withdrawal penalties or taxes.
With 25% down, you'd need roughly $800,000-$1.2 million in liquid assets. The exact amount depends on the lender's depletion calculation and your other debts.
Yes, lenders verify balances before closing. Request statements during stable market periods and maintain cushion above minimum requirements throughout underwriting.
Asset depletion rates typically run 1.5-3% higher than conventional mortgages. Rates vary by borrower profile and market conditions based on your asset strength and credit.
Most lenders allow it. They'll use either your calculated asset income or W-2 income, whichever creates stronger qualification for the loan amount you need.
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.