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Asset Depletion Loans in Fairfax
Fairfax attracts retirees and early-exit tech workers who built wealth through stock options and investments. Asset depletion loans let you qualify based on what you've accumulated, not what you currently earn.
Marin County's high-value market makes these loans practical for borrowers with substantial portfolios. Your IRA, 401k, or investment accounts become your income source for qualification purposes.
Lenders divide your total liquid assets by 360 months to create a monthly income figure. A $2 million portfolio generates roughly $5,555 monthly qualifying income under this calculation.
Most programs require 20-25% down and 680+ credit. The assets used for qualification typically can't be the same funds you're using for your down payment and reserves.
Asset depletion sits in the non-QM space, so you won't find it at Wells Fargo or Chase. We access specialized lenders who actually underwrite these deals daily.
Rate premiums run 0.75-1.5% above conventional. That spread narrows considerably when your portfolio exceeds $1.5 million and you bring 25% down.
Most borrowers don't realize retirement accounts count. Your IRA, 401k, and taxable investment accounts all work. Some lenders apply a 70% haircut to stock portfolios to account for volatility.
We see this loan work best for Marin buyers over 55 who sold a business or tech equity but show minimal taxable income. The alternative is waiting two years to establish rental income or consulting revenue.
Bank statement loans make more sense if you run an active business with deposits to show. Asset depletion beats that option when your wealth sits in investment accounts, not checking.
DSCR loans work for pure investment properties. Asset depletion handles primary residences and second homes where rental income won't cover the mortgage.
Fairfax home prices make asset depletion viable with smaller portfolios than San Francisco requires. A $1.2 million purchase needs roughly $1.8 million in qualifying assets at 25% down.
Many Fairfax buyers already own property elsewhere and carry substantial home equity. That equity counts if you're willing to keep it liquid rather than roll it into your new purchase.
Yes. Lenders calculate income based on the balance, not withdrawals. The account stays invested while you qualify.
That's the point of the program. Lenders assume you'll draw from assets over 30 years at the calculated rate.
Approval locks based on the statement date you provide. Portfolio fluctuations after that don't change your qualification.
Expect 12-24 months of reserves. These must be separate from the assets you're using to calculate income.
Yes. Most lenders let you add pension, Social Security, or rental income to the asset depletion calculation.
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.