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Asset Depletion Loans in Malibu
Malibu's coastal real estate attracts retirees, investors, and high-net-worth buyers who don't fit traditional income models. Asset depletion loans let you qualify using liquid assets instead of W-2s or tax returns.
This loan type works well in markets where buyers have significant portfolios but irregular income. Lenders calculate a monthly income equivalent by dividing your assets over the loan term.
Most lenders require $500,000 minimum in liquid assets, though amounts vary by loan size. They'll divide your total assets by the number of months in your loan term to create a monthly income figure.
Expect 620+ credit scores for approval, with better rates at 700+. Down payments start at 20% for primary homes, 25-30% for second homes and investment properties.
Asset depletion falls under non-QM lending, which means fewer lenders and more variation in guidelines. Some lenders count 100% of liquid assets, others use 70-80% to build in a cushion.
Retirement accounts get treated differently — many lenders only count 70% of IRA or 401k balances since early withdrawals trigger penalties. Shopping lenders matters because asset treatment rules directly affect how much you qualify for.
I've closed several Malibu deals where buyers had $2-5 million in brokerage accounts but minimal reportable income. Asset depletion beat bank statement loans because they didn't need to show 12-24 months of deposits.
The calculation is straightforward: $1.2 million in assets divided by 360 months equals $3,333 monthly income. That qualifies you for roughly $750K in loan amount at typical debt ratios, before adding actual income if you have any.
Asset depletion competes with bank statement and DSCR loans in Malibu's market. Bank statement loans work better if you have business income flowing through accounts but lower liquid assets.
DSCR loans fit investment properties where rental income covers the mortgage. Asset depletion wins when you're asset-rich but don't want to document business operations or rental history.
Malibu's high property values mean you need substantial assets to make the math work. A $2 million purchase at 25% down requires qualifying for $1.5 million — that typically needs $2-3 million in verifiable liquid assets.
Second home buyers dominate Malibu's coastal market. Lenders typically require larger down payments (25-30%) and reserve requirements (6-12 months PITI) for non-primary residences, which increases the total asset threshold.
Stocks, bonds, mutual funds, CDs, money market accounts, and retirement accounts all count. Lenders verify balances through recent statements — usually 60-90 days old.
Yes, though expect 25-30% down payments and higher rates than primary homes. Some lenders cap investment property loans at $2-3 million for asset depletion programs.
They require 2-3 months of account statements showing consistent balances. Large recent deposits get questioned — lenders want to see seasoned funds, not borrowed money.
Expect 1-2% higher than conventional rates. A conventional 30-year at 7% would price around 8-9% for asset depletion, varying by credit score and loan size.
No. Lenders calculate a theoretical monthly income from your assets — you don't actually withdraw them. Assets stay invested while you make normal mortgage payments.
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.