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Asset Depletion Loans in Rosemead
Rosemead has substantial populations of retirees and business owners who hold significant assets but don't draw traditional salaries. Asset depletion loans let you convert liquid holdings into qualifying income.
This program works well for buyers downsizing from larger LA County properties or investors liquidating portfolios. You're using what you have, not what you earn monthly.
Lenders divide your total liquid assets by 360 months to create a monthly income figure for qualification. You need substantial holdings—typically $500K minimum in stocks, bonds, savings, or retirement accounts.
Most programs require 20-30% down and credit scores above 680. The assets used for qualification must remain liquid through closing and can't be tied up in real estate or business equity.
Asset depletion lives in the non-QM space, so you're working with private lenders, not Fannie Mae or FHA. Rates typically run 1-2% higher than conventional loans because these lenders hold more risk.
Every lender calculates depletion differently. Some divide by 360 months, others by 240 or even 120. The calculation method dramatically changes how much home you can afford, so shopping multiple lenders matters here.
I see two common scenarios in Rosemead: recent retirees with pension lump sums and business owners who paid themselves minimally for tax reasons. Both have money but can't prove traditional income.
The biggest mistake is not planning ahead. If you're thinking asset depletion, don't move money between accounts 90 days before applying. Lenders need clean paper trails showing those assets have been yours for months, not days.
Bank statement loans work better if you have business revenue flowing through accounts. Asset depletion makes sense when your wealth sits static in investments, not moving as monthly deposits.
Foreign national loans require similar down payments but don't need US credit history. If you're choosing between them, asset depletion typically offers better rates for US citizens with established credit.
Rosemead sits near the 10 freeway with properties ranging from older single-family homes to newer townhomes. Asset depletion works across all property types here, though condos may face additional lender restrictions.
The San Gabriel Valley sees many multi-generational households where older family members with assets purchase homes. Asset depletion fits these situations better than trying to document complex family income arrangements.
Yes, most lenders count 401(k)s and IRAs, typically using 70% of the balance. You don't need to withdraw funds, just prove the assets exist.
Expect 20-30% down minimum. Higher down payments may get better rates since you're already showing substantial liquid reserves.
Asset depletion rates run 1-2% higher than conventional. Rates vary by borrower profile and market conditions.
Yes, though some lenders restrict it to primary residence or second homes. DSCR loans often work better for pure investment properties.
Most lenders require US-based accounts with statements in English. Foreign accounts add complexity and may require currency conversion 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.