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Asset Depletion Loans in Santa Fe Springs
Santa Fe Springs sits in a manufacturing and industrial corridor where business owners and retirees often have significant assets but minimal W-2 income. Asset depletion loans let you qualify based on investment accounts, not paystubs.
This loan works when you have substantial liquid assets—typically $500K+ in stocks, bonds, or cash. Lenders divide your total assets by 360 months to create a qualifying income stream.
Most Santa Fe Springs buyers using asset depletion are either selling a business, receiving inheritance, or retired with large portfolios. Traditional income verification won't capture their ability to pay.
You need at least $500K in liquid assets across checking, savings, stocks, bonds, or money market accounts. Retirement accounts like 401(k)s and IRAs qualify but get discounted 30-40% due to withdrawal penalties.
Credit scores start at 620, though most lenders prefer 680+ for competitive rates. Loan-to-value caps at 80% for purchases, 75% for cash-out refinances.
Lenders verify assets through 60 days of statements showing stable balances. Sudden deposits raise red flags unless you can source them through documented transfers or sales.
Asset depletion is a niche non-QM product. Maybe 15 of our 200+ lenders offer it, and each has different asset eligibility rules. Some count retirement accounts at full value, others won't touch them.
Rates run 1.5-2.5% higher than conventional loans because you're outside agency guidelines. Expect 7.5-9% depending on credit, LTV, and asset composition.
Most lenders won't combine asset depletion with other income sources. If you have $300K in assets and $5K monthly W-2 income, you typically pick one qualification method.
The biggest mistake I see: borrowers assume all assets count equally. They don't. One lender might accept your vested stock options at 70% value, another won't count them at all.
Asset depletion makes sense if you have $1M+ sitting liquid and hate liquidating to buy a $600K property. You preserve investment growth while still qualifying for a mortgage.
This loan rarely works for first-time buyers. You need either a windfall event or decades of wealth accumulation. Most of my Santa Fe Springs asset depletion clients are over 55.
Bank statement loans work better if you have business income but erratic deposits. Asset depletion ignores cash flow entirely—you just need a big balance sheet.
DSCR loans are cheaper if you're buying investment property. They qualify on rental income, not your assets, and typically price 0.5-1% lower than asset depletion.
Foreign national loans also use asset depletion qualifying, but add visa and currency conversion complexity. Pure asset depletion is simpler if you're a U.S. citizen or permanent resident.
Santa Fe Springs has industrial-zoned properties mixed with residential. If you're buying near refineries or warehouses, appraisers scrutinize environmental reports. That can delay closing 10-15 days.
The city sits in southeast LA County where home prices vary wildly by pocket. Asset depletion works across all price points here since it's purely balance-sheet driven.
Many Santa Fe Springs properties are older single-family homes or small industrial conversions. Lenders require full appraisals with clear residential use confirmation before funding asset depletion loans.
Most lenders require $500K minimum in liquid assets. The more you have relative to loan size, the easier approval gets and the better your rate.
Yes, but lenders discount retirement accounts 30-40% due to early withdrawal penalties. A $1M IRA counts as $600K-700K for qualifying purposes.
Rates typically run 7.5-9% depending on credit score, LTV, and asset composition. That's 1.5-2.5% higher than conventional loans.
No. Lenders verify you have the assets but don't require you to sell them. You keep investments intact while qualifying based on their value.
Expect 20-30 days. Lenders need 60 days of asset statements and time to verify account balances directly with custodians.
Most lenders make you pick one qualification method. You can't blend $300K in assets with $5K monthly wages for a higher 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.