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San Fernando's housing market attracts retirees and high-net-worth buyers who keep wealth in stocks, bonds, and savings. Asset depletion loans let you qualify without W-2s or tax returns.
This loan converts your liquid assets into qualifying income. Lenders divide your account balances by 360 months to calculate monthly income for approval.
Asset Depletion Loans in San Fernando
Most lenders require $500,000 minimum in liquid assets to consider asset depletion. Credit scores start at 680, though some programs accept 660 with larger down payments.
You'll need 10-30% down depending on property type and asset levels. Higher reserves strengthen your file and can unlock better rates.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in San Fernando.
San Fernando's housing market attracts retirees and high-net-worth buyers who keep wealth in stocks, bonds, and savings. Asset depletion loans let you qualify without W-2s or tax returns.
This loan converts your liquid assets into qualifying income. Lenders divide your account balances by 360 months to calculate monthly income for approval.
Most lenders require $500,000 minimum in liquid assets to consider asset depletion. Credit scores start at 680, though some programs accept 660 with larger down payments.
Only non-QM lenders offer asset depletion programs. These aren't available through Chase, Wells Fargo, or other retail banks.
Each lender handles asset calculations differently. Some count 100% of liquid accounts, others discount retirement funds by 30-40%. Shopping multiple lenders matters here.
Clients mess this up by not disclosing all accounts upfront. More assets mean stronger qualification. Show everything liquid in your name.
Timing matters. Asset values fluctuate daily. Lenders use a snapshot date, so market volatility can affect your qualifying income during underwriting.
Asset depletion works best when you have significant savings but irregular income. Bank statement loans make more sense if you're self-employed with steady deposits.
DSCR loans fit investment properties better since they ignore personal income entirely. Asset depletion shines for primary residences and second homes.
San Fernando homes typically run lower than nearby Burbank or Glendale. Your asset base goes further here, qualifying for more house per dollar in reserves.
Many buyers in this area transition from rental income to retirement. Asset depletion bridges that gap when pension income alone won't qualify you.
Stocks, bonds, mutual funds, savings, money markets, and retirement accounts all count. Most lenders discount retirement funds by 30-40% to account for early withdrawal penalties.
They divide your total liquid assets by 360 months. A borrower with $720,000 in accounts shows $2,000 monthly qualifying income.
Some lenders allow it, but DSCR loans work better for rentals. Asset depletion programs primarily serve primary residences and second homes.
Most programs start at 680. Some lenders go to 660 with 25-30% down and strong asset reserves.
Expect 30-45 days from application to closing. Asset verification adds time compared to standard loans but moves faster than complex business income reviews.