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South Gate buyers with substantial savings but irregular income face a qualification gap. Traditional lenders ignore your six-figure portfolio if you can't show W-2s.
Asset depletion programs solve this by converting your liquid assets into qualifying income. Your $600K in stocks becomes $2,500/month in calculated income for approval.
This matters in South Gate where many self-employed residents and immigrant families have built wealth outside traditional employment. Your balance sheet counts more than your pay stub.
Asset Depletion Loans in South Gate
You need at least $100K in liquid assets to start the conversation. Most lenders want to see $200K+ for properties in South Gate's price range.
Your assets get divided by 240 months to create qualifying income. That's a 20-year depletion schedule, though you never actually withdraw the money.
Credit scores need to hit 680 minimum. Many lenders require 700+ for asset depletion programs since there's no income documentation backstop.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in South Gate.
South Gate buyers with substantial savings but irregular income face a qualification gap. Traditional lenders ignore your six-figure portfolio if you can't show W-2s.
Asset depletion programs solve this by converting your liquid assets into qualifying income. Your $600K in stocks becomes $2,500/month in calculated income for approval.
This matters in South Gate where many self-employed residents and immigrant families have built wealth outside traditional employment. Your balance sheet counts more than your pay stub.
Asset depletion sits in the non-QM space, which means fewer lenders and higher rates than conventional loans. You're looking at 200-300 basis points above conforming rates.
Down payment requirements run 20-30% depending on credit score and total asset position. Stronger portfolios unlock better pricing and lower down payment options.
Not all non-QM lenders offer asset depletion. We access about 25 wholesale partners who write these programs, each with different asset calculation methods.
Here's what trips up most borrowers: not all assets count. Checking accounts and savings work. So do stocks, bonds, and mutual funds minus a 30% haircut for volatility.
Retirement accounts get discounted harder because of early withdrawal penalties. Figure 60-70% of IRA value counts toward your qualifying assets.
Timing matters. Market dips hurt your qualifying power since calculations use recent statements. Wait for your portfolio to recover before applying if you're borderline.
Bank statement loans beat asset depletion if you have business income to show. Those programs typically get better rates and need less down.
But asset depletion wins when your income is genuinely zero or when business deposits don't paint a clean picture. Retirees under 59.5 who can't tap IRAs without penalty use this constantly.
Foreign nationals with US assets also lean on this program since they can't produce domestic tax returns. Your asset base becomes the entire underwriting story.
South Gate properties cluster in the $500K-$700K range, which means you need roughly $150K-$200K in assets to qualify using depletion alone at 20% down.
Many South Gate buyers combine asset depletion with co-borrower income. One spouse uses W-2 income while the other qualifies through assets to boost buying power.
Appraisals come in tight here. Lenders want properties in good condition since they're taking income documentation risk. Plan for inspection repairs before appraisal if buying older South Gate housing stock.
No. The 240-month calculation is just for qualifying income. Your assets stay invested exactly as they are now.
Most lenders require US-based accounts for asset depletion. Some accept international accounts with extra documentation and exchange rate adjustments.
Lenders re-verify assets before funding. A 10-15% drop usually won't kill the deal, but major losses can derail approval.
Figure 30-45 days from application to clear-to-close. Asset verification adds time versus traditional income documentation.
Yes. Asset depletion works for purchases and rate-term refinances as long as you meet minimum asset thresholds.