Loading
Loading
Signal Hill's compact 2.2 square miles pack high-value properties where retirees and investors often hold substantial assets but limited W-2 income.
Asset depletion loans let you convert liquid holdings into qualifying income. Lenders divide your portfolio balance by 360 months to create a monthly income figure.
This works well for Signal Hill buyers with retirement accounts, investment portfolios, or sale proceeds who don't fit traditional income boxes.
The program requires significant reserves. Most lenders want 20-30% down and six months of payments in liquid assets after closing.
Asset Depletion Loans in Signal Hill
You need $500,000+ in liquid assets to make this work. Stocks, bonds, retirement accounts, and cash reserves all count toward your qualification total.
Credit scores start at 660 for most lenders. Expect better rates above 700 and more program options above 740.
Lenders exclude 30% of stock portfolios for volatility. They discount retirement accounts if you're under 59½ due to early withdrawal penalties.
Your debt-to-income ratio still matters. The asset-derived income must cover your proposed payment plus existing debts below 43-50% DTI.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Signal Hill.
Signal Hill's compact 2.2 square miles pack high-value properties where retirees and investors often hold substantial assets but limited W-2 income.
Asset depletion loans let you convert liquid holdings into qualifying income. Lenders divide your portfolio balance by 360 months to create a monthly income figure.
This works well for Signal Hill buyers with retirement accounts, investment portfolios, or sale proceeds who don't fit traditional income boxes.
Asset depletion sits in the non-QM space. You won't find this at Wells Fargo or Chase. Specialty lenders run these programs with portfolio money.
Each lender treats assets differently. Some accept only post-tax accounts. Others allow 401(k) balances with penalties baked into the calculation.
Rate pricing runs 1-2% above conventional mortgages. You're paying for underwriting flexibility and portfolio risk the lender holds.
We shop 40+ non-QM lenders who offer asset depletion. Their qualification formulas, asset treatment, and pricing vary enough to swing your approval.
Most borrowers discover asset depletion after getting denied for conventional loans. Retirees with $2 million portfolios can't qualify on Social Security alone.
The math works if you've got $750K+ in assets. Below that, the derived income rarely covers Signal Hill payment amounts unless you're buying under $600K.
We see this used for primary residences, second homes, and investment properties. DSCR loans often beat asset depletion for pure rental plays.
Your accountant might hate this program. Drawing from retirement accounts or liquidating positions for closing costs creates tax events they'll need to plan around.
Bank statement loans work better if you run business income through your accounts. Asset depletion shines when your money sits invested, not flowing monthly.
Foreign national loans require asset verification too, but those programs don't convert assets to income. You'll need actual cash flow documentation there.
DSCR loans ignore your income entirely and qualify on rental revenue. That's cleaner for investment properties where your personal balance sheet doesn't matter.
1099 contractor loans still need income documentation. Asset depletion skips that entirely and looks only at your portfolio balance and credit profile.
Signal Hill properties sit on a premium above surrounding Long Beach areas. That elevated pricing means higher loan amounts where asset depletion math gets tight.
The city's proximity to aerospace and oil industry creates buyers who took early retirement packages. They're sitting on buyout proceeds but lack current employment.
HOA fees run high in Signal Hill's hillside communities. Those monthly costs hit your DTI calculation even when using asset-derived income for qualification.
Appraisals move fast here due to limited inventory and comparable sales. Your asset statements need current dates within 60-90 days of application.
Most deals need $750K+ in liquid assets to generate enough qualifying income for Signal Hill price points. Minimum $500K to get any lender interested.
No. Lenders verify balances but don't require selling. You need liquidity for your down payment and reserves, which might require some liquidation.
Yes, but lenders apply penalties if you're under 59½. They reduce the balance to account for taxes and early withdrawal fees you'd face accessing the money.
Rates run 1-2% above conventional mortgages. Exact pricing depends on credit score, down payment, and asset type in your portfolio.
Bank statement works if you run business income through accounts. Asset depletion is better when your wealth sits invested with minimal monthly cash flow.
Yes. You maintain control of your investments. Lenders only verify balances and don't restrict trading or repositioning during underwriting.