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