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Asset Depletion Loans 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.
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.
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.
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.