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Asset Depletion Loans in Whittier
Whittier attracts retirees and high-net-worth buyers who don't fit traditional income boxes. Asset depletion loans let you qualify using investment accounts, not W-2s.
These programs work well for business owners cashing out, early retirees with liquid portfolios, and families using inheritance. Lenders convert your assets into qualifying income using a set formula.
You need substantial liquid reserves to make these loans pencil. Most lenders require 30-50% down and enough assets to cover both the down payment and future monthly payments.
Lenders divide your total liquid assets by the loan term (usually 360 months) to create qualifying income. A borrower with $1.8M in assets generates $5,000 monthly income for qualification purposes.
You still need solid credit, typically 680 minimum. The asset calculation excludes retirement accounts in most programs unless you're penalty-free age. Cash, stocks, bonds, and mutual funds all count.
Expect 30-40% down payment requirements. Lenders want skin in the game when you're qualifying without traditional income documentation.
Asset depletion sits in the Non-QM space. Not every lender offers it, and those who do price it differently based on their appetite for portfolio-based underwriting.
Rate spreads vary 1-2 points above conventional depending on down payment and asset depth. Shopping multiple Non-QM lenders matters here because one might count your specific asset mix while another won't.
Underwriting takes 30-45 days. Lenders verify asset statements going back 60-90 days and confirm funds are liquid and yours, not borrowed or gifted recently.
Most borrowers exploring asset depletion have other Non-QM options worth comparing. Bank statement loans often deliver better rates if you have business deposits showing consistent cash flow.
The sweet spot: retirees under 59½ with substantial brokerage accounts who can't tap retirement funds penalty-free. They have wealth but no traditional income proof.
Watch asset volatility during underwriting. If your portfolio drops 15% between application and closing, it can blow up your qualification. Some lenders will re-verify right before funding.
Bank statement loans beat asset depletion on rate if you run income through business accounts. Foreign national loans work if you're a non-resident buying with large down payments.
DSCR loans make sense if you're buying investment property—qualification uses rental income, not your assets. 1099 loans help contractors with tax write-offs reducing reported income.
Asset depletion shines when you have significant liquid wealth but irregular or undocumented income streams. It's often the only path for young retirees with portfolio wealth.
Whittier's housing stock spans $600K-$1.5M in desirable neighborhoods. Asset depletion borrowers typically target $800K-$1M homes where 35% down means $280K-$350K cash at closing.
Los Angeles County transfer taxes and fees add 1-1.5% to closing costs. Factor that into your liquid asset planning—you need down payment, closing costs, and post-close reserves.
Local appraisers know Whittier's pocket neighborhoods well. Properties in established areas near Uptown Whittier appraise cleanly, while edge-of-city homes sometimes require secondary reviews that slow closing.
Most deals require $500K-$1M minimum in liquid assets after your down payment. You need enough to qualify and still show 6-12 months reserves post-closing.
Depends on the lender and your age. Some allow penalty-free retirement accounts if you're 59½ or older. Most require taxable investment accounts for borrowers under that age.
Expect 1-2 percentage points higher. Rates vary by borrower profile and market conditions. Larger down payments and deeper asset reserves get better pricing.
No. Lenders verify you own the assets, not that you sell them. They calculate theoretical income by dividing total assets by loan term (typically 360 months).
Plan for 30-45 days. Lenders verify 60-90 days of account statements and confirm asset ownership. Market volatility can extend timelines if re-verification is needed.
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.