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Asset Depletion Loans in South Pasadena
South Pasadena attracts high-net-worth buyers who need mortgages but lack W-2 income. Asset depletion loans convert your liquid investments into qualifying income for mortgage approval.
We see these loans used by early retirees, trust fund recipients, and investors who live off portfolio returns. Your assets do the talking instead of paystubs.
Lenders divide your liquid assets by 360 months to calculate monthly qualifying income. A borrower with $1.8 million in assets generates $5,000 monthly income for qualification purposes.
Most lenders require 20-30% down and credit scores above 680. You keep your assets invested while the lender uses them for income calculation only.
Only non-QM lenders offer asset depletion programs. Each lender accepts different asset types and uses different divisor formulas ranging from 60 to 360 months.
Some count retirement accounts at 70% value due to early withdrawal penalties. Others accept only post-tax brokerage accounts at full value. Shopping lenders matters significantly here.
Asset depletion works best when borrowers have $1 million+ in liquid assets but irregular income patterns. We run scenarios across multiple lenders because asset treatment varies wildly.
The math changes if you're pulling from IRAs versus brokerage accounts. Lenders who discount retirement assets by 30% can kill deals that work fine elsewhere.
Bank statement loans make sense if you run business income through accounts but have substantial assets too. DSCR loans work better for pure rental property investors.
Asset depletion fits when you have wealth but zero traditional income documentation. Rates run 0.5-1.5% higher than conventional loans but approval odds beat any W-2 program.
South Pasadena's Craftsman homes and established neighborhoods attract buyers downsizing from larger LA properties. Many carry significant investment portfolios from prior home sales or careers.
Property values here support loan amounts where asset depletion makes financial sense. Borrowing $800k-$1.5M against a $2M+ portfolio keeps loan-to-asset ratios conservative.
Most lenders accept stocks, bonds, mutual funds, and money market accounts at full value. Retirement accounts like IRAs and 401ks typically count at 60-70% due to withdrawal penalties.
No. Lenders calculate income based on asset value but don't require you to sell anything. Your investments stay in your accounts throughout the loan term.
For a $5,000 monthly payment, you need roughly $1.8 million in qualifying assets using a 360-month divisor. Different lenders use different formulas affecting the requirement.
Most lenders require 680+ credit scores. Some approve down to 660 with larger down payments or stronger asset positions.
Expect rates 0.5-1.5% higher than conventional loans. The premium reflects non-QM lending risk and lower loan volumes in this niche program.
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.