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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.
Asset Depletion Loans in South Pasadena
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.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options 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.
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.