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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.
Asset Depletion Loans in Pomona
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.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options 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.
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.