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Ross buyers typically carry substantial liquid assets but don't fit traditional income documentation. Retirees, trust beneficiaries, and recently exited founders dominate this market.
Asset depletion loans calculate qualifying income by dividing your liquid holdings by the loan term. A $3 million portfolio becomes $100,000 annual qualifying income on a 30-year note.
Most Ross properties command prices where conventional lending caps out. Asset depletion solves both the income documentation gap and the jumbo loan requirement in one program.
Asset Depletion Loans in Ross
Lenders require $500,000 minimum in liquid assets after down payment and reserves. Stocks, bonds, mutual funds, and retirement accounts all count toward your total.
Credit scores start at 680, though 720+ opens better pricing. You'll need 20-30% down depending on loan size and property type.
The asset calculation divides your portfolio value by 360 months for a 30-year loan or 180 months for a 15-year term. That monthly number becomes your qualifying income.
Lenders hold back reserves equal to 12-24 months of payments. The remaining assets feed the income calculation used for debt-to-income ratios.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Ross.
Ross buyers typically carry substantial liquid assets but don't fit traditional income documentation. Retirees, trust beneficiaries, and recently exited founders dominate this market.
Asset depletion loans calculate qualifying income by dividing your liquid holdings by the loan term. A $3 million portfolio becomes $100,000 annual qualifying income on a 30-year note.
Most Ross properties command prices where conventional lending caps out. Asset depletion solves both the income documentation gap and the jumbo loan requirement in one program.
Asset depletion sits in the non-QM space, meaning fewer lenders offer it compared to conventional programs. We access 40+ non-QM lenders with varying asset calculation methods.
Some lenders discount retirement accounts to 70% of value while counting taxable accounts at 100%. Others blend all assets at a single percentage regardless of account type.
Rate spreads between lenders hit 0.75-1.25% on identical borrower profiles. Shopping across our network matters more here than on conventional deals.
Underwriting timelines run 30-45 days due to asset verification requirements. Lenders need statements covering 2-3 months on every account used for qualification.
Most Ross buyers who need asset depletion have the down payment but come up short on calculated income. The DTI ratio kills the deal, not the assets themselves.
I run asset depletion alongside bank statement and DSCR options for every high-net-worth client. One program usually prices 0.5% better depending on your specific asset mix.
Retirees under 59.5 face penalties accessing retirement funds, but asset depletion counts those accounts without requiring withdrawals. The calculation works even on restricted assets.
Foreign nationals with US investment accounts qualify under this program when they can't get bank statement loans due to offshore employment. It's cleaner documentation than most alternatives.
Bank statement loans work better if you have business income flow but limited liquid assets. Asset depletion flips that—strong balance sheet, minimal income documentation.
DSCR loans beat asset depletion on investment properties where rental income covers the payment. Pure asset plays make sense for primary residences or properties you'll occupy.
Conventional loans still win on rate if you can document W-2 or 1099 income. Asset depletion typically prices 1.5-2.5% higher than conforming products.
Ross properties often sit on large lots with guest houses or ADUs. Lenders appraise these as single-family homes, which helps with loan-to-value calculations versus true multi-unit properties.
Marin's limited inventory means accepted offers often waive appraisal contingencies. Asset depletion underwriting handles value disputes better than conventional loans due to larger down payments.
Most Ross purchases involve estate planning or trust structures. Asset depletion lenders work with vested beneficiaries and irrevocable trusts more readily than conventional underwriters.
Properties here rarely need jumbo conforming limits since most exceed $1.5 million. Asset depletion handles loan amounts to $4 million with established lenders in our network.
No. Lenders calculate income from your portfolio balance without requiring withdrawals. Your assets stay invested throughout the loan term.
Yes. Asset depletion counts 401(k) and IRA balances without triggering early withdrawal penalties. The calculation works on paper only.
They require 2-3 months of statements from each account. Balances must remain consistent across the statement period to validate the asset total.
You control them completely. Lenders don't monitor your portfolio or restrict how you invest after closing. Only the closing date balance matters.
Most lenders allow 10-20% of down payment from gift funds. The remaining assets must be seasoned in your accounts for 60+ days.