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Asset Depletion Loans in Rolling Hills
Rolling Hills attracts retirees and high-net-worth buyers who've accumulated wealth outside traditional employment. Asset depletion loans fit this demographic perfectly.
When you have $2M in liquid assets but minimal W-2 income, conventional underwriting rejects you. Asset depletion treats your portfolio as income stream—the money's there, just structured differently.
Lenders calculate monthly income by dividing your liquid assets by 360 months (or sometimes 240). With $1.8M in accounts, that's $5,000/month in qualifying income—enough for a $900K loan.
You need 20-30% down and 660+ credit score. Retirement accounts qualify if accessible without penalty. Stock portfolios, mutual funds, and savings all count—real estate equity doesn't.
Three types of lenders offer asset depletion: specialized non-QM shops, private banks, and portfolio lenders. Each prices differently based on your asset profile and down payment.
Rates run 1-3% above conventional mortgages. Stronger profiles—40% down, 720+ credit, $3M+ in assets—land closer to that 1% premium. Minimal reserves push you toward the 3% range.
Most retirees discover asset depletion after getting denied for conventional loans. They're shocked that $3M in investments doesn't count like a $100K salary does—different underwriting worlds entirely.
The 360-month calculation hurts borrowers with $500K-$1M in assets. You need substantial portfolios to generate meaningful qualifying income. Below $1M, bank statement or DSCR loans often work better if you have rental income or 1099 activity.
Bank statement loans require business activity and tax returns. Asset depletion needs neither—just prove you have the money. Foreign national loans work similarly but require larger down payments.
DSCR loans fit rental property buyers. 1099 loans suit self-employed borrowers who can show income. Asset depletion targets the truly retired: no business, no rentals, just accumulated wealth.
Rolling Hills estates often exceed conforming loan limits, pushing buyers into jumbo territory. Asset depletion combines with jumbo pricing—expect rates reflecting both complexities.
The city's gated communities and custom homes mean appraisals take 2-3 weeks. Unique properties sometimes require second appraisals. Budget 45-60 days for closing, not the standard 30.
Yes, if accessible without penalty. IRAs and 401(k)s work for borrowers over 59½. Lenders discount the value by 30% for potential taxes.
Realistically $1.5M minimum in liquid assets. Lower amounts don't generate enough qualifying income for typical home prices in this market.
Yes, if they're a co-borrower. All applicants' assets combine for qualification calculations. Both incomes and credit profiles matter.
Plan for 2-3 weeks of back-and-forth. Lenders verify every account, trace large deposits, and confirm no recent debt-funded transfers.
No, assets stay invested. Lenders verify balances and accessibility. You only liquidate what's needed for down payment and closing costs.
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.