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Asset Depletion Loans in Palmdale
Palmdale's housing market attracts retirees and investors who don't fit traditional income boxes. Asset depletion loans work well here because they don't require W-2s or pay stubs.
These loans calculate income by dividing your liquid assets by the loan term. A borrower with $600,000 in accounts qualifies based on $20,000 annual income over 30 years.
Non-QM programs like this give Palmdale buyers with substantial savings an alternative to conventional loans. Lenders look at what you have, not what you earn monthly.
Most asset depletion lenders require $500,000 minimum in qualifying accounts. Stocks, bonds, mutual funds, and retirement accounts typically count.
Credit scores start at 620, but 680+ gets better rates. Expect 20-30% down depending on property type and total assets.
Lenders divide your total qualifying assets by 360 months (30 years) or 180 months (15 years). That monthly figure becomes your income for debt-to-income calculations.
About 15-20 non-QM lenders in our network offer asset depletion programs. Each has different asset requirements and depletion formulas.
Some lenders allow 100% asset consideration. Others cap it at 70% of total liquid holdings. This variance creates a 0.5-1.5% rate spread between best and worst pricing.
Portfolio lenders move faster than warehouse lines on these deals. I've closed asset depletion loans in Palmdale in 21 days when documentation comes in clean.
Asset depletion works best for Palmdale buyers over 55 with retirement accounts but no pension. They have wealth but traditional lenders reject them for lack of income.
I always run both 30-year and 15-year depletion calculations. The 15-year formula doubles your qualifying income but increases the monthly payment.
Watch out for retirement account penalties. Some lenders require post-penalty values for IRA and 401k balances. This cuts qualifying power by 10-30% depending on age.
Bank statement loans need 12-24 months of deposits. Asset depletion needs one snapshot of your accounts. If you're not depositing regular income, depletion wins.
DSCR loans require rental property income to qualify. Asset depletion works for primary residences where you're not collecting rent.
Rates run 1-2% higher than conventional loans. You're paying for underwriting flexibility. Rates vary by borrower profile and market conditions.
Palmdale prices are lower than coastal LA County. This means the same asset pool qualifies buyers for more house here than in Santa Monica or Pasadena.
Many Palmdale buyers are relocating from higher-cost areas with equity to deploy. Asset depletion lets them buy without establishing California employment first.
Appraisals in Palmdale typically come in at contract price. This stability helps because asset depletion deals can't absorb appraisal gaps as easily with higher down payments already required.
Most lenders accept checking, savings, stocks, bonds, mutual funds, and retirement accounts. Real estate equity and crypto typically don't qualify.
Yes, but DSCR loans usually make more sense for rentals. Asset depletion works best for primary residences and second homes.
Expect 3-4 weeks total. Document collection takes longest since lenders need 60-90 day statements for all qualifying accounts.
Some do, typically 3 years at 3-2-1% declining. We screen for no-penalty options if you plan to refinance or sell early.
740+ credit scores access top-tier pricing. Each 20-point drop below that costs roughly 0.25% in rate.
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.