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San Gabriel's established neighborhoods attract retirees and high-net-worth buyers who don't show traditional income. Asset depletion loans let you qualify based on liquid accounts instead of W-2s or tax returns.
This loan type works well for buyers with substantial portfolios but low reported income. Think early retirees, trust beneficiaries, or investors who shelter earnings through write-offs.
Asset Depletion Loans in San Gabriel
Lenders divide your liquid assets by the loan term to calculate qualifying income. A $1.2M portfolio becomes $4,000 monthly income over 25 years. You need verified accounts worth enough to cover the division.
Credit minimums run 640-680 depending on down payment and asset levels. Higher scores and larger portfolios unlock better rates. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in San Gabriel.
San Gabriel's established neighborhoods attract retirees and high-net-worth buyers who don't show traditional income. Asset depletion loans let you qualify based on liquid accounts instead of W-2s or tax returns.
This loan type works well for buyers with substantial portfolios but low reported income. Think early retirees, trust beneficiaries, or investors who shelter earnings through write-offs.
Lenders divide your liquid assets by the loan term to calculate qualifying income. A $1.2M portfolio becomes $4,000 monthly income over 25 years. You need verified accounts worth enough to cover the division.
Asset depletion sits in the non-QM space, meaning no Fannie or Freddie backing. You're working with portfolio lenders and private capital sources. Not every lender offers this product.
We shop across 200+ wholesale lenders to find who accepts your specific asset mix. Some lenders count retirement accounts at 70%, others exclude them entirely. The underwriting differences matter significantly.
Most San Gabriel buyers stumble into asset depletion after getting declined for conventional loans. They have money but minimal reported income. We position this loan upfront when tax returns show business losses or low AGI.
The biggest mistake is liquidating assets to show higher bank balances. Keep funds where they sit. Lenders verify seasoning and source. Moving money around creates documentation headaches and delays closing.
Bank statement loans work better if you have business income but don't want to use tax returns. Asset depletion suits retirees or trust beneficiaries with no income stream at all.
DSCR loans make sense for investment properties where rental income covers the payment. Asset depletion handles primary residences and second homes where you need personal qualification but lack traditional income.
San Gabriel's older housing stock near Mission and downtown attracts downsizers with accumulated wealth. These buyers often qualify easily through asset depletion after selling larger properties in Arcadia or San Marino.
Property values here support non-QM lending without requiring jumbo loan amounts. The stable market and low turnover appeal to lenders underwriting portfolio-based deals.
Stocks, bonds, and savings accounts typically count at 100%. Retirement accounts often count at 60-70% depending on lender. Real estate equity doesn't qualify.
It depends on the loan amount and term. A $600K loan over 30 years needs roughly $2.2M in liquid assets after down payment to generate enough calculated income.
Yes, this loan works for primary residences, second homes, and investment properties. Guidelines tighten slightly for non-primary use but the core qualification stays the same.
No, lenders only require proof of asset ownership and value. The portfolio stays invested. You maintain your existing investment strategy throughout the process.
Expect rates 1-2% higher than conforming loans due to non-QM risk pricing. Larger down payments and stronger credit scores reduce the premium. Rates vary by borrower profile.