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Asset Depletion Loans in Torrance
Torrance draws retirees, executives with stock packages, and entrepreneurs who built wealth outside W-2 jobs. Asset depletion loans convert your investment accounts into qualifying income without liquidating them.
This program works across Torrance's housing spectrum—from coastal condos near Redondo Beach to single-family homes in Hollywood Riviera. You need substantial liquid assets, not traditional income documentation.
Lenders divide your total liquid assets by 360 months to calculate qualifying income. A $2M portfolio creates roughly $5,500 monthly income for qualification purposes.
You need 20-30% down and a 620+ credit score minimum. Most borrowers I work with have 700+ scores and larger asset pools to offset the monthly depletion calculation.
About 15-20 of our wholesale lenders offer asset depletion programs. Each has different asset type rules—some count retirement accounts at 70% value, others at 100%.
Rate spreads vary 0.5-1.5% between lenders for identical borrower profiles. This non-QM space requires true shopping because every lender prices their risk differently.
Most borrowers assume they need income. They don't—they need assets that translate into income under lender formulas. I've closed deals for retired Boeing engineers and real estate investors who haven't filed a tax return showing significant income in years.
The biggest mistake is pulling money out before talking to a broker. Keep assets liquid through closing. Once funded, do what you want—but touching those accounts early kills your qualifying income.
Bank statement loans require 12-24 months of deposits showing business cash flow. Asset depletion just needs current account statements—no waiting, no deposit patterns to analyze.
DSCR loans work for rental properties where rent covers the mortgage. If you're buying a primary residence in Torrance without traditional income, asset depletion is often your cleanest path.
Torrance median home prices require substantial assets to hit lender minimums. A $1.2M purchase with 25% down means you need roughly $1.5M+ in liquid assets to qualify comfortably.
South Bay properties appraise well, which helps non-QM lenders price competitively. Proximity to aerospace employers and beach cities makes Torrance a stable market even for portfolio lenders.
Yes. Lenders count retirement accounts in your asset calculation without requiring withdrawals. You keep the money invested while it qualifies you for the mortgage.
Both spouses' assets combine if both are on the loan. Solo borrowers can only use assets in their name or jointly held accounts.
Typically 25-35 days. No tax return review speeds things up compared to traditional mortgages, but appraisals and title work still take normal timeframes.
No. Lenders use the total account value divided by 360, not actual distributions. Investment income doesn't factor into asset depletion calculations.
620 is the floor, but I rarely see approvals below 680 with decent rates. Higher scores unlock better pricing tiers across most lenders.
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.