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Asset Depletion Loans in Chowchilla
Chowchilla's agricultural economy creates unusual lending situations. Farmers, land investors, and business owners often hold substantial assets without traditional W-2 income.
Asset depletion loans fit borrowers who built wealth through property sales, inheritance, or business exits. Your bank balance becomes your income proof.
This program works particularly well in Madera County's rural areas. Traditional lenders reject qualified buyers simply because their money doesn't come from a weekly paycheck.
Lenders divide your total liquid assets by 360 months to create a monthly income figure. A borrower with $720,000 qualifies as if earning $2,000 monthly.
You need significant assets to make the math work. Most deals require $500,000+ in verified funds across bank accounts, stocks, bonds, or retirement accounts.
Credit minimums sit around 640, though some lenders go to 620. You'll put down at least 20% on primary residences and 30% on investment properties.
Asset depletion is a niche product. Only specialized non-QM lenders offer it, which means you won't find it at Wells Fargo or Bank of America.
Each lender counts assets differently. Some accept 70% of retirement account balances, others only 60%. Stocks might count at 70% of current value due to volatility.
We access 200+ wholesale lenders and know which ones actually close these deals. The spread between best and worst pricing can exceed 1.5% in rate.
Most Chowchilla buyers using asset depletion are over 55. They sold farmland, retired from ag businesses, or inherited property and keep wealth in savings.
The fatal mistake is touching those assets before closing. Withdraw $50,000 for a tractor and your qualifying income drops $139 monthly in lender calculations.
We often layer this with Bank Statement Loans when buyers have some income but not enough. Asset depletion fills the gap without requiring more business documentation.
Rates run 1-2% above conventional mortgages. On a $400,000 loan, expect rates around 8-9% versus 6.5-7% for standard programs. Rates vary by borrower profile and market conditions.
Bank Statement Loans work better if you're still operating a business. Asset depletion suits fully retired borrowers or those living off investments.
Foreign National Loans require zero US income verification but need larger down payments. Asset depletion gets you lower rates with the same asset base.
DSCR Loans make sense for investment properties generating rent. Asset depletion works for any property type when you lack traditional income documentation.
Chowchilla property values create accessible entry points for asset depletion buyers. A $300,000 home needs $450,000-500,000 in verified assets to qualify.
Madera County appraisers sometimes struggle with rural properties. Allow extra time for valuations on parcels with ag improvements or unusual features.
Many borrowers here hold assets in agricultural credit unions or small regional banks. Those statements work fine if they show 60-90 days of consistent balances.
Title searches in this area occasionally reveal old mineral rights or water easements. Budget an extra week for closing compared to urban California markets.
Yes, but lenders typically count only 60-70% of retirement account values. A $500,000 401(k) might qualify you for $1,000 monthly income after the haircut and 360-month division.
Lenders verify balances at closing, not just application. A 15% drop could kill your approval if it pushes debt-to-income ratios too high.
Yes, as long as it's residential. Pure farmland or commercial ag operations won't qualify under standard asset depletion programs.
Expect $70,000 down plus $525,000-600,000 in total verified assets. The assets prove your ability to make payments over 30 years.
Yes. Once you close, those assets are yours to use however you want. Lenders only care about the balance through funding.
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.