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Monrovia attracts retirees and investors with significant liquid assets but no traditional paychecks. Asset depletion loans treat your investment accounts like income.
This foothill city draws buyers who sold coastal properties or cashed out stock options. Your 401(k) or brokerage account becomes your qualifying income source.
If you're asset-rich but paycheck-light, this loan type makes sense here. Banks won't ask for tax returns or employment letters.
Asset Depletion Loans in Monrovia
You need substantial liquid assets to qualify. Most lenders want $500k minimum in retirement accounts, brokerage accounts, or bank savings.
Lenders divide your total assets by 360 months to create monthly qualifying income. With $1 million in assets, you show roughly $2,778 monthly income.
Credit scores start at 660 for most programs. Higher assets can sometimes offset lower credit. You'll still need 20-30% down payment.
Real estate equity doesn't count here. Only liquid, verified accounts work for asset depletion calculations.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Monrovia.
Monrovia attracts retirees and investors with significant liquid assets but no traditional paychecks. Asset depletion loans treat your investment accounts like income.
This foothill city draws buyers who sold coastal properties or cashed out stock options. Your 401(k) or brokerage account becomes your qualifying income source.
If you're asset-rich but paycheck-light, this loan type makes sense here. Banks won't ask for tax returns or employment letters.
Asset depletion isn't offered by every lender. Most big banks won't touch it. You need non-QM specialists who understand this underwriting.
We work with 20+ wholesale lenders who price these loans differently. Rate spreads can vary 0.75% between lenders on identical borrower profiles.
Documentation is lighter than traditional loans but still thorough. Expect 60 days of statements for every account you use to qualify.
Some lenders let you combine multiple account types. Others restrict you to retirement funds only. Program rules vary significantly.
Most Monrovia buyers don't know this loan exists until they get rejected for conventional financing. Early retirees get caught off guard constantly.
Your CPA probably told you minimizing taxable income saves money. That tax strategy kills mortgage applications. Asset depletion solves it.
Rates run 1-2% higher than conventional loans. You're paying for the flexibility. Borrowers with $2 million liquid aren't usually rate-sensitive.
I see this work best for 55-70 year olds downsizing from bigger LA County homes. They have seven-figure portfolios but zero salary.
Bank statement loans work better if you're self-employed with business income. Asset depletion fits pure investors or retirees.
DSCR loans make sense for rental properties. Asset depletion works for primary residences and second homes in Monrovia's foothill neighborhoods.
If you have both business income and assets, we can shop both programs. Sometimes combining income sources gets better terms than asset depletion alone.
Foreign national loans require bigger down payments. Asset depletion needs less cash upfront if you're a U.S. citizen with liquid assets.
Monrovia's housing stock skews older with character properties. These homes sometimes need renovation work that affects loan-to-value ratios.
Foothill location means some properties sit on larger lots. Higher home values in certain pockets require bigger asset balances to qualify.
Property insurance costs have climbed in fire-adjacent areas. Lenders factor monthly insurance into debt ratios even on asset depletion loans.
Being 25 miles from downtown LA means prices stay reasonable compared to Pasadena. Your assets stretch further here than in coastal markets.
Retirement accounts, brokerage accounts, stocks, bonds, and money market funds qualify. Real estate equity and business assets don't count toward the calculation.
Most deals need $500k minimum in liquid assets, but higher home prices require more. Lenders divide assets by 360 to create monthly income for qualification.
Yes, retirement accounts are the most common asset type used. You don't withdraw the money; lenders just count it as qualifying income.
Rates run 1-2% higher than conventional loans. You're paying for flexibility that traditional underwriting can't provide.
No penalties apply because you're not withdrawing funds. Lenders calculate theoretical income from your account balances only.
Yes, but bank statement loans often work better for active business owners. Asset depletion fits retirees and investors without business income.