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Asset Depletion Loans in Santa Clarita
Santa Clarita draws retirees, high-net-worth investors, and business owners who don't show traditional W-2 income. Asset depletion loans convert liquid assets like stocks, bonds, and retirement accounts into qualifying income.
Most conventional lenders reject borrowers with substantial assets but minimal documented income. Asset depletion programs bridge that gap by treating your portfolio as an income stream.
These loans work best for buyers with significant liquidity purchasing in Santa Clarita's diverse housing market. The program calculates monthly income by dividing assets by the loan term, typically 360 months.
Most lenders require 620-680 minimum credit score for asset depletion programs. You'll need substantial liquid assets — typically $500K minimum after down payment and reserves.
Lenders divide your total eligible assets by the loan term to determine monthly qualifying income. A $1.5M portfolio divided by 360 months yields $4,166 monthly qualifying income.
You'll still need 10-20% down payment depending on loan amount and property type. Lenders also require 6-12 months reserves after closing to cover future payments.
Asset depletion sits in the non-QM space, which means fewer lenders and higher rates than conventional loans. Not every wholesale lender offers these programs, even within non-QM.
Rate premiums run 1-2.5% above conventional mortgages depending on loan size and asset profile. Rates vary by borrower profile and market conditions.
Some lenders count 100% of liquid assets while others discount retirement accounts to 70-80% to account for tax implications. This variation makes shopping lenders critical for maximizing qualifying power.
Most asset depletion borrowers I see could technically qualify for bank statement or 1099 loans but prefer not to share business financials. The trade-off is higher rates for privacy and simplicity.
Lenders differ significantly on which assets count at full value. Some exclude real estate holdings entirely while others count them at 60-70% of appraised value after existing liens.
If you're 59.5 or older and have substantial retirement accounts, this program often beats bank statement loans. You avoid the tax return complexity and get cleaner underwriting.
Watch out for lenders that require full asset liquidation documentation going back 60-90 days. Some accept recent statements while others want complete sourcing of every deposit.
Bank statement loans analyze cash flow while asset depletion ignores income entirely. If your business shows minimal profit but you've accumulated wealth, asset depletion wins.
Foreign national loans also skip U.S. income verification but typically require 30-40% down. Asset depletion offers better leverage if you have citizenship or permanent residency.
DSCR loans work for rental properties using property income, not personal assets. Asset depletion handles primary residences and second homes where rental income doesn't apply.
Santa Clarita's housing stock includes everything from Valencia condos to rural horse properties in Canyon Country. Asset depletion programs handle all property types, though some lenders restrict rural parcels.
Los Angeles County transfer taxes and Santa Clarita's HOA-heavy communities add closing costs. Make sure your reserve calculations account for these expenses beyond standard PITI.
The city's distance from coastal LA means better property values for your asset depletion leverage. You'll qualify for more home per dollar of assets compared to buying in West LA or Santa Monica.
Stocks, bonds, mutual funds, and savings typically count at 100%. Retirement accounts often discount to 70-80%. Each lender treats assets differently.
Most asset depletion programs limit to primary residence and second homes. Investment properties require DSCR or other non-QM programs.
Expect 1-2.5% higher rates than conventional mortgages. Rates vary by borrower profile and market conditions based on your specific asset mix.
No. Lenders verify assets exist but don't require liquidation. You maintain your investment portfolio throughout the loan.
Most lenders want $500K minimum after down payment and reserves. Exact requirements depend on purchase price and loan amount.
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.