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Asset Depletion Loans in Paramount
What assets count toward qualification?
Stocks, bonds, mutual funds, 401Ks, IRAs, and cash accounts count. Real estate equity and illiquid business assets don't unless converted to cash.
01
Paramount has retirees and business owners with savings who can't show W-2 income. Asset depletion loans convert your liquid assets into qualifying income.
Lenders divide your total liquid assets by 360 months to calculate monthly income. A $500,000 portfolio becomes $1,389 monthly qualifying income.
This works in Paramount's mixed housing market where move-down buyers have retirement accounts but no paycheck. Asset depletion bridges that gap.
02
You need $200,000 minimum in liquid assets after your down payment and reserves. Most lenders require 620+ credit and 20-30% down.
Qualifying assets include stocks, bonds, mutual funds, retirement accounts, and cash. Real estate equity doesn't count unless it's liquid.
Lenders verify assets through statements from the last 2-3 months. The math is simple: total assets ÷ 360 = monthly income for qualification.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Paramount.
Paramount has retirees and business owners with savings who can't show W-2 income. Asset depletion loans convert your liquid assets into qualifying income.
Lenders divide your total liquid assets by 360 months to calculate monthly income. A $500,000 portfolio becomes $1,389 monthly qualifying income.
This works in Paramount's mixed housing market where move-down buyers have retirement accounts but no paycheck. Asset depletion bridges that gap.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
03
Asset depletion is a non-QM product. You won't find it at Chase or Wells Fargo. Specialized lenders price these loans 1-2% above conventional rates.
Our network includes lenders who calculate depletion at 120, 240, or 360 months. Shorter timelines create higher qualifying income but stricter terms.
Some lenders count 70% of retirement account value to account for tax liability. Others use 100% if assets are in Roth accounts already taxed.
04
I see Paramount buyers with $800K in IRAs trying to buy $400K properties. They qualify easily but get shocked by 8-9% rates instead of 6.5%.
The biggest mistake is liquidating assets to show income tax returns. Keep assets liquid and use asset depletion instead of creating a taxable event.
If you have both assets and irregular income, we compare asset depletion against bank statement loans. Sometimes mixing documentation gets better terms.
05
Bank statement loans work better if you have business revenue but low assets. Asset depletion wins when you're asset-rich and income-light.
Foreign national loans require larger assets but allow non-US buyers. DSCR loans need rental property income, not personal assets.
1099 loans need documented contract income. If you're truly retired with no earnings, asset depletion is often your only non-QM option.
06
Paramount homes under $600K fit asset depletion well because you need less in liquid assets to qualify. A $450K purchase needs $90-135K down plus $200K liquid.
Los Angeles County has high property values but Paramount offers relative affordability. Your $750K portfolio stretches further here than in coastal areas.
Paramount's older housing stock attracts move-down buyers with paid-off homes and savings. Asset depletion lets them buy without creating W-2 income artificially.
FAQ
Stocks, bonds, mutual funds, 401Ks, IRAs, and cash accounts count. Real estate equity and illiquid business assets don't unless converted to cash.
Yes. Lenders count retirement assets even with withdrawal penalties. They typically apply a 70% haircut to account for taxes and penalties.
With 25% down ($100K), expect $200K minimum in liquid assets after closing. That creates $556-1,667 monthly income depending on depletion term used.
No. Asset depletion is just how lenders calculate qualifying income. You make mortgage payments from any source you choose after closing.
Yes. Expect 1-2% above conventional rates. This is a non-QM product priced for non-traditional borrowers. Trade-off is no income verification required.
We can layer documented income with asset depletion. Part-time W-2 plus assets often gets better terms than pure asset depletion alone.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
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Our team of licensed mortgage brokers works Los Angeles County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Los Angeles County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.