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Asset Depletion Loans in Walnut
Walnut attracts retirees and high-net-worth buyers who hold significant assets but lack W-2 income. Asset depletion loans let you qualify using liquid accounts—not employment verification.
This program works well in a community known for strong schools and family-oriented buyers. Many applicants have sold businesses or accumulated investment portfolios that traditional underwriting ignores.
Lenders divide your liquid assets by 360 months to create qualifying income. A $1.8M portfolio generates $5,000 monthly income for qualification purposes.
You'll need 640+ credit and at least 20% down. Eligible assets include stocks, bonds, mutual funds, and retirement accounts minus early withdrawal penalties.
Only specialized non-QM lenders offer asset depletion programs. Banks won't touch this—they require employment income.
Each lender calculates depletion differently. Some use 84 months, others 360 months. That spread changes your qualifying income dramatically and affects which price range you can afford.
I see this loan work best for recent business exits and early retirees in Walnut. The buyers who struggle most are those mixing liquid assets with illiquid real estate holdings—only cash-equivalent accounts count.
Don't assume your largest portfolio wins approval. We've placed borrowers with $2M in stocks who couldn't use $5M in rental properties. Liquidity matters more than total net worth.
Bank statement loans require 12-24 months of deposits to prove income flow. Asset depletion skips that entirely—your portfolio balance is the only income evidence needed.
DSCR loans work for investment properties using rental income. Asset depletion covers primary residences when you have wealth but no paycheck.
Walnut's median home prices mean you'll need roughly $1.5M-$2M in liquid assets to qualify for most properties at 20% down. Higher-priced homes require proportionally larger portfolios.
The local buyer pool includes many Asian American families who structure wealth in investments rather than traditional employment. Asset depletion fits that financial profile better than conventional programs.
Stocks, bonds, mutual funds, and retirement accounts count. Real estate equity, business interests, and restricted stock don't qualify as liquid assets.
You'll provide 2-3 months of account statements showing balances and holdings. Lenders verify the accounts are liquid and penalty-free for withdrawal.
Yes, if your spouse is on the loan application. All borrowers' liquid assets combine for the depletion calculation.
Rates vary by borrower profile and market conditions. Larger asset portfolios and lower LTVs typically earn better pricing than minimum qualifications.
No, assets stay invested. Lenders only require proof of balance and liquidity—you don't actually withdraw the funds.
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.