Loading
Asset Depletion Loans in Mill Valley
Mill Valley's high home values attract buyers with substantial assets but non-traditional income sources. Retirees, investors, and self-employed professionals often hold significant wealth in portfolios rather than W-2 income.
Asset depletion loans calculate qualifying income by dividing liquid assets by the loan term. A borrower with $2 million in stocks could qualify as if earning roughly $66,000 annually over a 30-year mortgage.
This financing approach suits Marin County's demographic of established professionals who've built wealth outside conventional employment structures.
Lenders typically require verified liquid assets worth at least 20-30% more than the loan amount. Qualifying assets include stocks, bonds, mutual funds, retirement accounts, and savings balances.
Credit scores generally need to reach 660-680 minimum, though some programs accept lower scores with larger asset reserves. Down payments usually start at 20-30% for primary residences.
Assets must be seasoned in accounts for at least two months. Lenders divide the asset total by the loan term (typically 360 months) to calculate monthly qualifying income.
Asset depletion programs come exclusively from non-QM lenders since they don't meet traditional qualified mortgage standards. Portfolio lenders and specialty finance companies dominate this space.
Interest rates typically run 1-3 percentage points above conventional mortgages. Rates vary by borrower profile and market conditions, with larger down payments securing better pricing.
Many lenders cap asset depletion loans at $2-3 million, though some extend to $5 million for well-qualified borrowers with substantial reserves.
Borrowers benefit most when their assets significantly exceed the minimum required. A $3 million portfolio qualifying for a $1 million loan demonstrates far stronger positioning than barely meeting thresholds.
Mixing asset types strengthens applications. Combining liquid stocks with vested retirement accounts and cash reserves shows diversification that lenders value during underwriting.
Tax-advantaged accounts like 401(k)s and IRAs count toward qualification, but lenders typically haircut these by 30% to account for withdrawal penalties and tax implications.
Bank statement loans work better for business owners with strong revenue but complex tax returns. Asset depletion suits retirees or investors living off portfolios rather than active income.
DSCR loans focus on rental property cash flow, while asset depletion qualifies borrowers for primary residences or second homes based solely on net worth.
Foreign national loans serve non-US citizens, whereas asset depletion helps American citizens and permanent residents who simply lack traditional employment documentation.
Mill Valley's walkable downtown and proximity to nature trails attract wealthy retirees who sold businesses or left corporate careers. These buyers often have seven-figure portfolios but no current employment.
Marin County property taxes and homeowners insurance costs run higher than state averages. Lenders factor these expenses into debt-to-income calculations alongside the mortgage payment.
The community's outdoor lifestyle and cultural amenities draw buyers planning early retirement or semi-retirement, making asset-based qualification increasingly relevant for local transactions.
Stocks, bonds, mutual funds, money market accounts, savings, CDs, and vested retirement accounts all qualify. Lenders typically exclude illiquid assets like real estate equity or unvested stock options.
Yes, if your spouse becomes a co-borrower on the loan. Assets from non-borrowing spouses generally don't count unless you're in a community property state and provide specific documentation.
Lenders use the balance on specific statement dates, not current market values. Most require assets to remain in accounts through closing and may reverify balances before funding.
No. Assets remain invested in your accounts. Lenders simply use their value to calculate theoretical income, then verify the accounts exist and meet seasoning requirements.
Most asset depletion programs cap at $2-3 million, though some lenders extend to $5 million. Your qualifying amount depends on your total verifiable liquid assets divided by the loan term.
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.