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Asset Depletion Loans 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.
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.
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.
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.