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South El Monte attracts retirees and high-net-worth buyers who hold significant assets but show minimal taxable income. Asset depletion loans convert your investment accounts into qualifying income.
This loan fits borrowers with stock portfolios, retirement accounts, or cash reserves who don't need traditional employment. South El Monte's stable residential market works well for asset-based qualification.
Asset Depletion Loans in South El Monte
Lenders divide your total liquid assets by 360 months to calculate monthly income. A borrower with $1.8 million in verified accounts shows $5,000 monthly qualifying income.
You need 620+ credit and typically 20-30% down. Acceptable assets include stocks, bonds, IRAs, 401(k)s, and cash accounts. Real estate and business holdings don't count.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in South El Monte.
South El Monte attracts retirees and high-net-worth buyers who hold significant assets but show minimal taxable income. Asset depletion loans convert your investment accounts into qualifying income.
This loan fits borrowers with stock portfolios, retirement accounts, or cash reserves who don't need traditional employment. South El Monte's stable residential market works well for asset-based qualification.
Lenders divide your total liquid assets by 360 months to calculate monthly income. A borrower with $1.8 million in verified accounts shows $5,000 monthly qualifying income.
Only non-QM lenders offer asset depletion programs. Each lender sets their own asset calculation method and some discount retirement account values by 30% for early withdrawal penalties.
Rates run 1-2% higher than conventional loans. Shop carefully because asset treatment varies widely across lenders in our network.
Most South El Monte buyers using asset depletion are either recently retired or sold a business. They have money but their tax returns show low income by design.
Don't drain your accounts for a larger down payment. Lenders want to see reserves remaining after closing. Keep 12+ months of payments liquid post-funding.
Bank statement loans work better if you have business income flowing through accounts. Asset depletion makes sense when your money sits idle in investments.
Foreign national loans require different documentation but accept similar asset profiles. DSCR loans skip personal income entirely for investment properties.
South El Monte properties typically fall below jumbo limits, keeping loan amounts manageable for asset depletion qualification. Lower home prices mean you need less in liquid assets to qualify.
Property taxes and insurance in Los Angeles County add to your qualifying ratios. Budget for full PITI when calculating if your assets generate enough monthly income.
Divide your target monthly payment by 0.0028 to estimate required assets. A $3,000 payment needs roughly $1,080,000 in liquid accounts.
Yes, but lenders often discount it by 30% to account for early withdrawal penalties. A $500,000 IRA might count as $350,000 qualifying assets.
No. Lenders verify your accounts but don't require you to sell anything. Assets stay invested throughout the loan term.
Stocks, bonds, mutual funds, money market accounts, CDs, and retirement accounts. Real estate equity and business ownership don't qualify.
Typically 25-35 days. Document gathering takes longer than traditional loans since lenders verify multiple account statements and balances.