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Temple City attracts retirees and business owners with significant liquid assets but minimal W-2 income. Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of paychecks.
This loan works when you've built wealth through investments or business sales. Lenders convert your asset balance into qualifying income by dividing it over the loan term.
Asset Depletion Loans in Temple City
Most lenders require 620-680 minimum credit and at least $500,000 in liquid assets. They divide your total assets by 360 months to calculate monthly qualifying income.
You'll need 20-30% down depending on property type. Lenders verify assets through recent statements from banks, brokerages, and custodians.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Temple City.
Temple City attracts retirees and business owners with significant liquid assets but minimal W-2 income. Asset depletion loans let you qualify using stocks, bonds, and retirement accounts instead of paychecks.
This loan works when you've built wealth through investments or business sales. Lenders convert your asset balance into qualifying income by dividing it over the loan term.
Most lenders require 620-680 minimum credit and at least $500,000 in liquid assets. They divide your total assets by 360 months to calculate monthly qualifying income.
Asset depletion isn't offered by Chase or Wells Fargo. You need a non-QM lender who specializes in alternative documentation.
Rate spreads vary widely between lenders on this product. We've seen differences of 1.5% on identical borrower profiles depending on which lender prices it.
Most borrowers don't realize retirement accounts count, even with early withdrawal penalties. Lenders typically apply a 30% haircut to IRAs and 401(k)s to account for taxes and penalties.
We see Temple City buyers get tripped up mixing asset types. Keep documentation clean—don't combine checking accounts with brokerage statements in one verification package.
Bank statement loans work better if you have ongoing business income. Asset depletion makes sense when you're truly retired or living off investments.
DSCR loans beat asset depletion for rental properties since they ignore your personal finances entirely. Use asset depletion for primary residences or second homes.
Temple City's single-family homes typically run $800K-$1.2M. At those prices, you'd need roughly $2M in assets to qualify for median-priced homes using depletion alone.
Many Temple City buyers combine asset depletion with other income sources. Lenders will layer pension income or Social Security on top of your asset calculation.
Stocks, bonds, mutual funds, savings, CDs, and retirement accounts all qualify. Lenders apply discounts to retirement accounts to cover tax implications.
Yes, lenders calculate qualifying income from the balance without requiring actual withdrawals. They just verify the account exists and has sufficient funds.
Expect 20-30 days from application to closing. Asset verification adds time compared to standard loans since lenders scrutinize multiple account statements.
No liquidation required for qualification. You only need assets for down payment and reserves, which typically means keeping most of your portfolio intact.
Rates vary by borrower profile and market conditions. Asset depletion typically prices 1.5-3% above conventional rates depending on credit and loan amount.