Loading
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.
Asset Depletion Loans in Rolling Hills
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.