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Asset Depletion Loans in Corte Madera
Corte Madera's premium real estate attracts buyers with substantial assets but non-traditional income. Asset depletion loans let you qualify using investment accounts, not pay stubs.
Marin County sellers expect clean offers and fast closes. When your portfolio holds seven figures but your tax returns show minimal income, asset depletion bridges the gap.
This town sits between Mill Valley and Larkspur, drawing retirees, tech executives with stock compensation, and investors. Traditional underwriting misses these profiles completely.
You need verifiable liquid assets like stocks, bonds, mutual funds, or retirement accounts. Lenders divide your total balance by 360 months to create qualifying income.
Most programs require 20-30% down and minimum FICO scores around 680. The asset account must be seasoned for at least 60 days before you apply.
Real estate holdings don't count unless they're in liquid REITs. Physical properties fall under DSCR loans instead, which use rental income math.
Asset depletion sits in non-QM territory, meaning Fannie and Freddie won't touch these files. You're working with private lenders who price for the added documentation complexity.
Each lender treats retirement accounts differently. Some apply 70% haircuts to IRA balances, while others count full amounts if you're over 59½.
Rates typically run 0.75-1.5% above conventional pricing. That premium buys flexibility most W-2 lenders can't offer, especially in Marin's competitive market.
I see three main profiles in Corte Madera using asset depletion: retirees with million-dollar portfolios, tech execs holding unvested stock, and foreign nationals parking US investments. All have money but minimal taxable income.
The asset calculation matters more than you'd think. A $2M portfolio yields roughly $5,555 monthly qualifying income. That supports about $900K in borrowing power at current rates.
If you're still working part-time or have 1099 income, some lenders blend asset depletion with that cash flow. It's not either-or, which helps on bigger purchases.
Bank statement loans require 12-24 months of statements and complex income calculations. Asset depletion just needs current account balances, making underwriting cleaner.
DSCR loans work when you're buying rental property and want the rent to cover the mortgage. Asset depletion fits primary residences where you're living off investments.
Foreign national loans require 30-40% down and exclude certain visa types. If you've got a green card and liquid assets, asset depletion offers better terms.
Corte Madera properties move fast when priced right, especially near Town Center or The Village. Asset depletion pre-approvals carry weight because sellers know the money exists in verified accounts.
Marin County sees property tax bills that shock out-of-area buyers. Make sure your asset calculation accounts for ongoing costs, not just the mortgage payment.
HOA fees at waterfront condos can hit $800-1,200 monthly. Lenders include those in debt ratios, which chips away at how much house your assets will support.
Stocks, bonds, mutual funds, and money market accounts count at full value. Most lenders apply haircuts to retirement accounts based on your age and early withdrawal penalties.
Yes, but lenders typically discount the balance by 30-40% if you're under 59½ to account for penalties. Over 59½, you'll see better treatment with some lenders counting full balances.
Stated income loans are dead post-2008. Asset depletion requires full documentation of your accounts, just not employment income. It's legitimate non-QM, not no-doc lending.
Most lenders want 680 minimum, though some go to 660 with larger down payments. Higher scores unlock better rates, especially on jumbo amounts common in Marin County.
Yes, though expect higher rates and bigger down payments than primary residences. DSCR loans often make more sense for pure investment plays with rental income.
Faster than bank statement loans since you're not analyzing two years of deposits. Expect 15-25 days from application to clear-to-close with complete documentation upfront.
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.