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Asset Depletion Loans in Rancho Palos Verdes
Rancho Palos Verdes draws retirees and high-net-worth buyers who hold wealth in portfolios, not W-2s. Asset depletion loans let you qualify using liquid assets like stocks, bonds, and cash accounts.
This coastal enclave sees many buyers transition from corporate careers into retirement or consulting. Traditional lenders reject these borrowers despite millions in investable assets. Asset depletion fixes that disconnect.
Most Palos Verdes buyers choose this loan after selling a business or reaching retirement age. You prove ability to pay by dividing assets over the loan term, creating qualifying income on paper.
Lenders divide your liquid assets by 360 months to calculate qualifying income. A borrower with $2 million in stocks creates $5,555 monthly income for qualification purposes.
You need 20-30% down and credit scores above 680 for most programs. Reserves matter more than employment history—expect lenders to require 12-24 months of mortgage payments in liquid accounts.
Retirement accounts like IRAs count, but lenders apply penalties for early withdrawal in their calculations. Stocks and money market accounts work better than restricted 401(k) funds.
Asset depletion sits in the non-QM space where portfolio lenders set their own guidelines. Rates run 1-2% higher than conventional loans because these are niche products with manual underwriting.
We access 200+ wholesale lenders, but only 15-20 offer true asset depletion programs. Each lender treats asset types differently—some count discounted stock portfolios while others take full value.
Most lenders cap these loans at $3 million, though a few go higher for jumbo coastal properties. Speed matters less than structure—expect 30-45 days to close while underwriters verify account statements.
Rancho Palos Verdes buyers often hit this scenario: sold a medical practice or tech startup, now sitting on $5 million in Schwab accounts but zero W-2 income. Banks reject them instantly.
The trick is mixing asset types strategically. Lenders give full credit to money markets but discount volatile stocks by 30-40%. We structure portfolios to maximize qualifying income before submitting files.
Borrowers waste time at Chase or Wells Fargo before finding us. Those banks can't do asset depletion even when branch managers promise otherwise. You need a broker with non-QM lender access from day one.
Bank statement loans work better if you run an active business with monthly deposits. Asset depletion makes sense when wealth sits idle in investment accounts.
Foreign national loans require similar documentation but focus on international buyers. Asset depletion targets U.S. residents and citizens who transitioned away from traditional employment.
DSCR loans beat asset depletion for investment properties since rental income covers the mortgage. For primary homes in Palos Verdes, asset depletion gives you the cleanest path to approval.
Rancho Palos Verdes sits on the Palos Verdes Peninsula where ocean-view homes start at $2 million. Most buyers here carry investment portfolios that dwarf annual income—classic asset depletion candidates.
The Portuguese Bend landslide area creates unique challenges. Some properties require larger down payments regardless of loan type. Asset depletion lenders sometimes add overlays for homes in active slide zones.
Golf course communities and ocean-facing estates dominate local inventory. Buyers expect privacy and space, often downsizing from larger metros while maintaining substantial liquid wealth in retirement accounts.
With 25% down, you'd need roughly $2.5-3 million in liquid assets. Lenders divide this by 360 months to create qualifying income while maintaining required reserves.
Yes, but lenders deduct early withdrawal penalties from the calculation. IRAs and taxable accounts work better since they create more qualifying income per dollar.
Expect 30-45 days for full approval. Manual underwriting requires account verification across multiple institutions, which takes longer than automated conventional loans.
Some lenders include 3-5 year prepayment penalties on non-QM loans. We find no-penalty options, though rates may run slightly higher.
Scores above 740 unlock the lowest tier pricing. You can qualify at 680, but expect rates to increase 0.5-1% compared to higher credit borrowers.
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.