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Asset Depletion Loans in Redondo Beach
Redondo Beach attracts retirees, tech exits, and investors with substantial portfolios but irregular income. Asset depletion loans turn those liquid holdings into qualifying income.
Coastal properties here command premium prices. Traditional income verification won't work for borrowers sitting on stock portfolios or retirement accounts.
Most lenders divide your assets by 360 months to calculate monthly income. A $2M portfolio becomes $5,556 monthly qualifying income.
You need significant liquid assets—typically $500K minimum after down payment and reserves. Stocks, bonds, retirement accounts, and cash all count.
Credit requirements start at 680, though some lenders go to 660. Higher asset balances can offset lower credit scores.
Expect to put down 20-30% and keep 6-12 months reserves. The more assets you have, the better your rate.
Only non-QM lenders offer asset depletion programs. Your neighborhood bank won't touch these deals.
Each lender treats assets differently. Some exclude retirement accounts under 59½. Others apply haircuts to volatile holdings.
Rate spreads vary wildly—shopping across our 200+ lenders typically saves 0.5-1% on rate. That's $200-400 monthly on a $1M loan.
Redondo Beach buyers using asset depletion usually fall into three camps: early retirees with IRAs, tech professionals post-exit, or foreign nationals parking US dollars.
The calculation matters more than the asset total. A lender using 360-month depletion versus 240-month changes your qualifying income by 50%.
Document everything upfront. Two months of statements for all accounts, plus letters explaining any large deposits. Underwriters scrutinize asset sources heavily.
Bank statement loans work better if you run business income through personal accounts. Asset depletion shines when you're truly income-light but cash-heavy.
DSCR loans make sense for investment properties. Asset depletion targets primary residences where you can't show rental income.
Rates typically run 0.5-1% higher than bank statement programs. You're paying for the privilege of zero income documentation.
Redondo Beach's beach-close properties often exceed conforming limits. Asset depletion works on any loan amount—we've closed deals from $800K to $4M here.
Property insurance runs high this close to the ocean. Lenders factor those costs into debt ratios, so budget $4K-8K annually for hazard coverage.
Many Redondo buyers are relocating from out of state with equity from previous sales. That lump sum fits perfectly into asset depletion qualification.
Plan on $500K minimum in liquid assets after your down payment and reserves. Higher balances unlock better rates and terms.
Yes, but treatment varies by lender. Some apply penalties if you're under 59½, while others accept full balance at face value.
Expect rates 1-2% higher than conventional programs. Asset depletion compensates for no income verification with higher pricing.
No. Lenders calculate theoretical income from your portfolio balance. Your assets stay invested throughout the loan.
Count on 45-60 days to close. Asset verification takes longer than standard income documentation.
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.