Loading
Pico Rivera homebuyers with substantial savings but irregular income hit a wall with traditional mortgages. Asset depletion loans let you qualify using liquid assets—stocks, bonds, retirement accounts—instead of W-2s.
This program makes sense here because many Pico Rivera residents are self-employed, own rental properties, or are retired with investment portfolios. Lenders divide your assets by 360 months to calculate qualifying income.
You need significant liquidity to make the math work. A $500,000 loan typically requires $1.5-2 million in verified assets after your down payment.
Most lenders want 620+ credit and 20-30% down for asset depletion programs. You'll need bank statements showing liquid assets in accounts you've held for 60+ days.
Retirement accounts count but get discounted 30% for early withdrawal penalties. Non-retirement accounts like brokerage statements count at full value.
The property can be your primary residence, second home, or investment property. Lenders verify assets are yours and calculate monthly income by dividing total assets by 360.
Asset depletion is a niche non-QM product. Only about 20% of wholesale lenders on our platform offer it, and each has different asset calculation methods.
Some lenders let you combine asset depletion with other income sources. Others only count 70% of stock portfolios due to volatility concerns.
Rates run 0.5-1.5% higher than conventional loans. Rates vary by borrower profile and market conditions. Expect 30-45 day closing timelines while underwriters verify asset documentation.
We see asset depletion work best for three borrower types in Pico Rivera: retirees selling Bay Area homes, business owners who shelter income in S-corps, and investors with rental portfolios who show low taxable income.
The biggest mistake is not planning for reserve requirements. Lenders want 6-12 months reserves remaining after they calculate your qualifying assets.
If you're close to making the numbers work, consider a co-borrower with additional assets or a slightly smaller loan amount. A 10% reduction in loan size can make the difference between approval and denial.
If you have business income, bank statement loans might be simpler. They look at 12-24 months of deposits instead of requiring millions in assets.
For investment properties, DSCR loans qualify you on rental income alone—no personal assets needed. That works if the property cash flows well.
Asset depletion makes sense when you're truly income-poor but asset-rich. If you file tax returns showing any decent income, conventional or bank statement loans will get you better rates.
Pico Rivera home prices make asset depletion feasible for more buyers than in coastal LA neighborhoods. You're not trying to qualify for a $2 million purchase.
Many local residents bought rental properties decades ago and now have equity but low reported income. Asset depletion lets you tap home equity or buy additional properties.
Appraisals come in smoothly here—lenders know the market. The challenge is documentation. Gather 60 days of statements for every account you'll use before applying.
Yes, but lenders discount retirement accounts 30% for early withdrawal penalties. A $1 million 401(k) counts as $700,000 in qualifying assets.
Most lenders want 20-30% down. Higher down payments sometimes offset lower credit scores or marginal asset calculations.
No. Lenders verify you have the assets but don't require liquidation. They calculate theoretical income based on your holdings.
Expect 30-45 days. Asset verification takes longer than income documentation since underwriters review multiple account statements.
Some lenders allow it. If you have part-time W-2 income or rental income, certain programs let you stack income sources to qualify.
Asset Depletion Loans in Pico Rivera