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La Puente buyers with substantial savings but irregular income hit a wall with traditional lenders. Asset depletion loans treat your investment accounts, retirement funds, and cash reserves as qualifying income.
This matters in Los Angeles County where self-employed business owners and retirees often hold significant wealth outside W-2 paychecks. Your portfolio becomes your approval path.
Asset Depletion Loans in La Puente
Lenders divide your liquid assets by 360 months to create a monthly income figure. A borrower with $1.8 million qualifies with $5,000 monthly income regardless of employment status.
Most programs require 10-20% down and credit scores above 660. The asset calculation excludes your down payment and reserves, so you need substantial liquidity beyond closing costs.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in La Puente.
La Puente buyers with substantial savings but irregular income hit a wall with traditional lenders. Asset depletion loans treat your investment accounts, retirement funds, and cash reserves as qualifying income.
This matters in Los Angeles County where self-employed business owners and retirees often hold significant wealth outside W-2 paychecks. Your portfolio becomes your approval path.
Lenders divide your liquid assets by 360 months to create a monthly income figure. A borrower with $1.8 million qualifies with $5,000 monthly income regardless of employment status.
Asset depletion sits in the non-QM space where lender overlays vary dramatically. Some accept 70% of asset value in the income calculation, others use 100%. These differences change your buying power by tens of thousands.
We compare asset depletion programs across 200+ wholesale lenders. Rate spreads run 1-2% based on how each lender structures the asset calculation and risk assessment.
Borrowers waste time with retail banks that don't understand asset depletion. Most portfolio lenders want to see diversified holdings, not everything in a single volatile stock.
The smartest move: get pre-approved before liquidating anything. Some lenders accept unrealized gains, others require cash positions. Know the rules before you trigger tax events selling assets.
Bank statement loans work better for business owners with strong cash flow but messy write-offs. Asset depletion fits retirees and investors living off portfolios, not operating income.
DSCR loans make sense for investment properties where rental income covers the payment. Asset depletion handles primary residences where your personal assets fund the mortgage.
La Puente's mix of single-family homes and established neighborhoods attracts buyers downsizing from pricier LA County areas. These buyers often hold substantial equity and retirement savings but lack traditional income.
Property values here support jumbo loan thresholds in some cases, though many deals fall into conforming territory. Either way, asset depletion works across loan sizes when income documentation creates barriers.
Most lenders accept stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs. Cash reserves and CDs qualify. Real estate equity and business assets typically don't count.
Yes. Lenders calculate income based on the account balance without requiring withdrawals. You keep your retirement intact while using it to qualify for the mortgage.
Most programs require $500K minimum in liquid assets after down payment and reserves. Higher balances improve approval odds and rate pricing significantly.
Asset depletion rates run 1-2% higher than conventional financing. Exact pricing depends on credit, down payment, and total assets. Rates vary by borrower profile and market conditions.
Expect 30-45 days from application to closing. Asset verification takes longer than income documentation, especially with multiple account types and institutions involved.