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Long Beach attracts retirees, investors, and high-net-worth individuals who maintain substantial assets but lack traditional W-2 income. Asset depletion loans serve this demographic by converting liquid holdings into qualifying income.
This loan type works well for Long Beach's diverse housing stock, from waterfront condos to historic neighborhoods. Borrowers leverage investment accounts, retirement funds, and cash reserves instead of employment verification.
Non-QM financing like asset depletion has grown in California's coastal markets. These programs help qualified borrowers purchase or refinance when conventional documentation doesn't reflect their financial strength.
Asset Depletion Loans in Long Beach
Lenders typically require $500,000 to $1 million or more in liquid assets to qualify. They divide your total eligible assets by 360 months to calculate qualifying income, though specific formulas vary by lender.
Acceptable assets include checking accounts, savings, stocks, bonds, and retirement accounts like 401(k)s and IRAs. Properties and business assets generally don't count toward qualification.
Credit requirements typically start at 620 FICO, though many lenders prefer 680 or higher. Down payments range from 20% to 30%, depending on property type and total asset position.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Long Beach.
Long Beach attracts retirees, investors, and high-net-worth individuals who maintain substantial assets but lack traditional W-2 income. Asset depletion loans serve this demographic by converting liquid holdings into qualifying income.
This loan type works well for Long Beach's diverse housing stock, from waterfront condos to historic neighborhoods. Borrowers leverage investment accounts, retirement funds, and cash reserves instead of employment verification.
Non-QM financing like asset depletion has grown in California's coastal markets. These programs help qualified borrowers purchase or refinance when conventional documentation doesn't reflect their financial strength.
Asset depletion loans come from non-QM lenders and private institutions, not conventional mortgage channels. Each lender uses different asset calculation methods and acceptable asset types.
Rates vary by borrower profile and market conditions but typically run 1-3% higher than conventional mortgages. This premium reflects the specialized underwriting and portfolio lending nature of these products.
Shopping between lenders matters significantly with asset depletion programs. One lender might count 100% of retirement assets while another uses 70%, dramatically affecting your qualifying amount.
Asset depletion works exceptionally well for Long Beach buyers with portfolio income from stocks and bonds but limited reportable earnings. The key is comprehensive asset documentation showing stability and depth.
Many borrowers don't realize they qualify until they understand how lenders calculate asset-based income. A $1.8 million portfolio could generate $5,000 monthly qualifying income under standard formulas.
Timing matters with asset depletion loans. Lenders require recent statements, typically within 60-90 days. Market volatility affecting account values can impact qualification, so coordinate asset verification carefully.
Asset depletion differs from bank statement loans, which use business deposits to show income. If you're self-employed with revenue flowing through accounts, bank statement programs might offer better terms.
Foreign national loans serve non-U.S. citizens without domestic credit or income, while asset depletion helps Americans with unconventional income structures. DSCR loans work for investment properties based on rental income, not borrower assets.
The right program depends on your specific situation. Asset depletion suits retired or semi-retired buyers best, while active business owners often benefit more from bank statement or 1099 loan products.
Long Beach's position in Los Angeles County means higher property values than inland areas. Asset depletion borrowers here typically need larger portfolios to qualify for coastal real estate prices.
The city's appeal to retirees and second-home buyers makes asset depletion particularly relevant. Belmont Shore, Naples Island, and similar waterfront areas attract buyers who fit this lending profile perfectly.
California's housing regulations and coastal commission rules don't affect asset depletion qualification, but they do impact property selection. Work with experienced local representation who understands these layers.
Most lenders require $500,000 to $1 million minimum in liquid assets. The exact amount depends on the property price and how the lender calculates asset-based income, typically dividing total assets by 360 months.
Yes, retirement accounts typically qualify. However, lenders may apply a discount factor (often 70%) to account for penalties and taxes on early withdrawal, even though you won't actually withdraw the funds.
Rates vary by borrower profile and market conditions but generally run 1-3 percentage points above conventional mortgages. Your specific rate depends on credit score, down payment, and total asset position.
Higher property prices mean you need more qualifying income, which requires larger asset portfolios. Coastal Long Beach properties may require $1 million or more in assets depending on purchase price and down payment.
Processing typically takes 30-45 days, similar to conventional loans. The key is providing complete asset documentation upfront including all account statements for the past 60-90 days from qualified institutions.