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