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Asset Depletion Loans in Pomona
Pomona's housing market attracts retirees and investors who don't fit traditional W-2 income boxes. Asset depletion loans let you qualify using your portfolio, not employment verification.
This loan works when you have significant liquid assets but limited monthly income on paper. Lenders divide your total assets by 360 months to create a qualifying income figure.
Most lenders require $500,000+ in liquid assets after your down payment and reserves. Credit scores typically start at 660, though some programs accept 620.
You'll need 20-30% down depending on property type and total assets. The lender counts stocks, bonds, retirement accounts, and liquid investment accounts toward your qualifying number.
Asset depletion isn't offered by conventional lenders or government programs. You need a non-QM lender willing to underwrite outside Fannie Mae guidelines.
Rates run 1-2% higher than conventional loans because of the alternative documentation. Expect rates between 7.5-9.5% depending on your profile and asset depth.
I see this loan work best for early retirees buying in Pomona's established neighborhoods. You sold a business or inherited wealth but show minimal taxable income.
The math is simple: $1M in assets creates $2,778 monthly qualifying income. Add your actual income sources and you can often qualify for $400K-$600K purchase prices in Pomona's market.
Bank statement loans need business income history you can document. Asset depletion doesn't care about income at all—just what's sitting in your accounts.
If you're self-employed with cash flow, bank statement loans usually cost less. If you're truly retired or between business ventures, asset depletion is your best path.
Pomona properties in the $400K-$700K range align well with what asset depletion borrowers can qualify for. You're not competing with conventional buyers on tight budgets.
Los Angeles County's property taxes add to your monthly obligations, which affects debt-to-income even with asset-based qualifying. Plan for 1.1-1.2% annual tax rates when calculating affordability.
Yes, most lenders count 70-80% of retirement account balances like IRAs and 401Ks. They apply a discount because of early withdrawal penalties and tax implications.
Plan for $1.2M-$1.5M in liquid assets after your down payment. This covers the 360-month calculation plus reserves lenders require for approval.
Yes, but you'll need 25-30% down for non-owner occupied properties. Some lenders also require higher asset balances for investment purchases versus primary residence.
Most programs start at 660, though a few lenders go to 620 with compensating factors. Higher credit scores get better rates and more flexible terms.
Expect 30-45 days from application to closing. Asset verification takes longer than standard income docs since lenders verify multiple account statements and balances.
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.