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Asset Depletion Loans in Lomita
Lomita sits between Harbor Gateway and Rolling Hills Estates, attracting retirees and high-net-worth buyers who don't fit traditional income boxes. Asset depletion loans let you qualify using liquid assets instead of W-2s or tax returns.
This program converts your investment accounts into qualifying income by dividing the total balance by 360 months. A $2 million portfolio becomes $5,555 monthly income for qualification purposes.
Most Lomita buyers using asset depletion are early retirees, business owners with complex tax returns, or investors managing multiple properties. They have cash but show low taxable income.
You need $500,000 minimum in liquid assets to make the math work for most Lomita properties. Credit score floors vary by lender but expect 660-680 minimums with 20-30% down.
Eligible assets include stocks, bonds, retirement accounts, and CDs. Real estate equity doesn't count. Your lender calculates monthly income by taking 70% of the asset value and dividing by 360.
The 70% haircut accounts for market volatility and potential penalties on retirement withdrawals. If you have $1 million in assets, your qualifying income is roughly $1,944 per month.
Asset depletion is a non-QM product with fewer lenders than conventional programs. We work with 15-20 wholesale lenders offering competitive variations of this program.
Some lenders allow gift funds for down payment, others don't. Some accept foreign assets, most won't. Rate spreads between lenders can hit 75 basis points on identical borrower profiles.
Most asset depletion lenders price these as investor loans regardless of occupancy. Expect rates 1-2% above conventional conforming loans with similar credit and LTV.
This loan makes sense when you have significant assets but minimal taxable income. It doesn't work if you're trying to maximize buying power with limited savings.
The biggest mistake is not shopping lenders. One lender might count 100% of retirement accounts while another applies the 70% haircut. That difference changes your qualification amount dramatically.
We also see borrowers miss opportunities to combine asset depletion with other income sources. Some lenders let you add Social Security or pension income on top of asset calculations.
Bank statement loans often beat asset depletion for self-employed borrowers with business income. You'll qualify for more house using 12-24 months of deposits versus portfolio division.
DSCR loans work better for Lomita investment properties since they ignore personal income entirely. Asset depletion makes sense for primary residences or when rental income won't cover the note.
Foreign national loans handle non-resident buyers who may have offshore assets. Asset depletion requires US-based accounts and typically demands citizenship or permanent residency.
Lomita home prices vary from older single-family homes to newer construction near Lomita Boulevard. The asset depletion calculation matters more in higher price ranges where conventional conforming loans hit limits.
South Bay attracts aerospace retirees and business owners who've sold companies. Many have $2-5 million in investments but show $50,000 in taxable income on returns.
Proximity to ports and aerospace employers creates steady demand from buyers transitioning from high-income careers to retirement. Asset depletion bridges that income documentation gap perfectly.
Lenders use the value at application or a recent statement. Market fluctuations during your 30-45 day close rarely cause issues unless you liquidate accounts.
Yes, most lenders count retirement accounts at 70% of value. Some allow 100% if you're past penalty-free withdrawal age but policies vary by lender.
Stated income loans no longer exist post-2008. Asset depletion provides actual documentation through account statements rather than unsupported income claims.
No, assets stay invested. Lenders verify balances through statements but don't require you to sell or move funds except for down payment and closing costs.
Most lenders require 20-30% down. Higher LTV options exist but add rate premiums and may require larger asset reserves beyond the qualification amount.
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.