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Los Angeles draws retirees, trust beneficiaries, and investors with substantial assets but irregular W-2 income. Asset depletion loans let you qualify based on liquid reserves instead of employment history.
Lenders divide your total liquid assets by 360 months to create a fictional monthly income stream. A $2 million portfolio generates roughly $5,556 monthly qualifying income—enough for most LA properties.
Most lenders require 680+ credit and at least $500,000 in liquid assets after closing. Stocks, bonds, retirement accounts, and cash reserves all count toward your total.
Expect 20-30% down payment minimums. Loan amounts typically cap at $3-4 million depending on asset totals and property type.
Only non-QM lenders offer asset depletion programs—you won't find this at Wells Fargo or Chase. Each lender applies different asset calculation formulas and discount rates.
Some lenders count 70% of retirement account values, others allow 100% of liquid brokerage accounts. Shopping multiple lenders can swing your qualifying income by $1,500+ monthly.
LA buyers using asset depletion typically fall into three camps: early retirees with IRAs, tech employees with stock-heavy comp, and trust fund recipients. All share the same problem—low reported income relative to assets.
We see best pricing when borrowers put 25%+ down and keep 18+ months reserves post-closing. One percentage point in rate differences is common between lenders on these loans.
Bank statement loans work better if you have business income or 1099 earnings. Asset depletion makes sense when your wealth sits in investments, not operating accounts.
Foreign national loans require different documentation but allow non-US citizens to buy. DSCR loans use rental income instead of assets—better for pure investment properties.
LA's high property values mean you need serious asset depth. A $1.5M Westside condo requires roughly $2.5-3M in liquid assets to qualify comfortably with standard ratios.
Many LA buyers combine asset depletion with investment property income or spousal W-2 earnings. Lenders allow layering income sources to reach higher loan amounts.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts all qualify. Most lenders discount retirement accounts by 30% since they're less liquid.
Yes, but DSCR loans usually offer better terms for rentals. Asset depletion works best for primary residences or second homes where rental income doesn't apply.
Expect 1.5-2.5% higher rates than conventional loans. The spread narrows with larger down payments and stronger credit profiles above 740.
Yes. You'll provide 2-3 months statements showing consistent balances. Recent large deposits require gift letters or source documentation.
Most lenders accept trust assets if you're the beneficiary with withdrawal rights. You'll need trust documents proving access to funds.
Asset Depletion Loans in Los Angeles