Loading
Asset Depletion Loans in Monterey Park
Monterey Park's mix of retirees, business owners, and foreign investors creates steady demand for asset-based lending. Traditional income verification doesn't work when your wealth sits in stocks, bonds, or retirement accounts.
Asset depletion loans let you qualify by dividing your liquid assets by 360 months to create a hypothetical income stream. A borrower with $1.8 million in accounts shows $5,000 monthly qualifying income—no W-2 needed.
Most lenders require 620-660 minimum credit and 20-30% down payment. You'll need bank or brokerage statements showing assets aged at least 60 days—newer deposits typically don't count.
Qualifying assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity and business assets usually don't qualify. Lenders discount retirement accounts by 30-40% due to early withdrawal penalties.
Only non-QM lenders offer asset depletion—you won't find this at Wells Fargo or Chase. Rates run 1-2% above conventional loans because these don't meet Fannie Mae guidelines.
Shopping across lenders matters more here than conventional loans. One lender might discount your 401(k) by 30% while another uses 40%. That difference changes your qualifying income by thousands monthly.
I see two types of borrowers use asset depletion: early retirees with substantial portfolios and foreign nationals who keep wealth offshore. Both have money but no tax returns showing traditional income.
Borrowers often miscalculate by using their total net worth. Only liquid, documented accounts count. Your $2 million home equity doesn't help. Your $500K in a Vanguard account does.
If you have recent business income, bank statement loans usually beat asset depletion. They typically offer lower rates and require less cash reserves.
Asset depletion makes sense when you're truly retired or between business ventures. If you're still earning but income is inconsistent, explore bank statement or 1099 programs first.
Monterey Park's large Chinese-American community includes many buyers who accumulated wealth overseas. Asset depletion works when you can document foreign accounts with English translations.
Home prices here mean you'll need $1.2-2 million in liquid assets to qualify for typical purchases with 25% down. Most lenders cap loans at $2-3 million on asset depletion programs.
Yes, but lenders discount IRAs by 30-40% due to early withdrawal penalties. A $1 million IRA counts as $600-700K in qualifying assets depending on the lender.
Rates vary by borrower profile and market conditions. Typically 1-2% above conventional rates—currently that means mid-7% to low-8% range for most borrowers.
No. Lenders only need statements proving you own the assets. You keep your investments—they just calculate a hypothetical income from the total value.
With 25% down, you'd need roughly $1.4-1.6 million in liquid assets. That creates enough qualifying income to support a $600K loan at typical debt ratios.
Yes. Many lenders let you add Social Security, pensions, or rental income to the asset-derived income figure. This increases your buying power significantly.
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.