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Asset Depletion Loans 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.
You'll need 20-30% down depending on property type. Lenders verify assets through recent statements from banks, brokerages, and custodians.
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.
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.