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Asset Depletion Loans in Santa Monica
Santa Monica real estate runs $1.5M+ for single-family homes. Traditional income verification falls apart for retirees, trust fund recipients, and investors living off dividends.
Asset depletion lets lenders count 70% of your liquid assets as monthly income. A $2M portfolio becomes $11,600/month in qualifying income without touching employment history.
You need $500K minimum in liquid assets — stocks, bonds, mutual funds, or retirement accounts. Cash in checking counts but lenders prefer diversified holdings.
Credit scores start at 680. Expect 20-30% down depending on asset strength. The larger your portfolio relative to loan amount, the easier approval gets.
Most banks won't touch asset depletion. You need non-QM specialists who understand portfolio-based underwriting and won't panic over missing W-2s.
We work with 15+ lenders offering asset depletion across varying tiers. Rate spreads run 1-2% above conventional, but approval odds beat trying to force-fit traditional docs.
Santa Monica buyers using asset depletion usually fall into three buckets: early retirees from tech, trust fund beneficiaries, or investors parking money in real estate.
The math matters more than you think. Lenders divide assets by 360 months, then apply 70% haircut. A $1.8M portfolio yields $3,500/month — not enough for a $2M home without serious down payment.
Bank statement loans work better if you own a business with healthy deposits. DSCR loans beat asset depletion for investment properties that rent well.
Asset depletion shines when you're asset-rich but income-light — no business to document, no rental income to calculate. Just portfolio statements and credit score.
Santa Monica's luxury condo market sees heavy asset depletion use. Buyers downsizing from $5M homes in Pacific Palisades often have portfolios but no W-2 income.
HOA fees run $800-1,500/month in beachfront buildings. Lenders count those against your debt ratio, so factor that into portfolio size calculations early.
Stocks, bonds, mutual funds, and retirement accounts all count. Real estate equity and business assets don't. Lenders verify through recent brokerage statements.
Yes, lenders count 70% of IRA and 401(k) balances as qualifying assets. You don't withdraw the money — they just calculate it as monthly income.
With 25% down, you'd need roughly $2.4M in assets after down payment to qualify. The exact amount depends on credit score and debt load.
Sometimes. Lenders price on loan-to-value and credit more than portfolio size. But stronger asset position can unlock better LTV options.
Most lenders allow it. Social security, pensions, and rental income stack on top of calculated asset depletion to boost qualifying power.
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.