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Asset Depletion Loans in San Rafael
San Rafael's affluent buyers often hold wealth in investments, not W-2s. Asset depletion loans let you qualify using retirement accounts, stock portfolios, or cash reserves instead of employment income.
Marin County attracts retirees, entrepreneurs, and high-net-worth buyers who don't fit traditional lending boxes. This program converts liquid assets into qualifying income by dividing total holdings by 60-360 months.
We see this loan work well for buyers purchasing second homes in San Rafael or downsizing from larger Marin properties. Lenders view your portfolio as proof of ability to pay.
You need $500,000+ in liquid assets to make this program viable in San Rafael's market. Lenders divide your total assets by loan term (usually 60-120 months) to calculate monthly qualifying income.
Credit scores start at 620, but most approvals come at 680+. Expect 20-30% down payment requirements depending on property type and asset levels.
Qualifying assets include IRAs, 401(k)s, stocks, bonds, and savings accounts. Real estate equity and business holdings typically don't count unless they're liquidated or publicly traded.
Fewer than 30 of our 200+ lenders offer asset depletion programs. Each calculates qualifying income differently—some use 60-month depletion, others allow 120-360 months for larger portfolios.
Rate pricing runs 1-2.5% above conventional loans. The shorter your depletion period, the higher your calculated income and the better your rate.
We shop across portfolio lenders who keep these loans in-house. They set their own guidelines, which means flexibility on things like property type, loan amount, and seasoning requirements.
Most borrowers overpay by choosing the wrong depletion period. A 60-month calculation maximizes qualifying income but implies faster asset drawdown, which spooks some underwriters on larger loans.
We run three scenarios before submitting: 60-month for maximum income, 120-month for balanced qualification, and full-term depletion for conservative underwriting. The right choice depends on your asset level and loan amount.
San Rafael buyers often combine multiple asset types. We've closed deals using IRA + brokerage + savings to hit required thresholds. Diversified holdings actually strengthen the file.
Bank statement loans work better if you have business revenue but low tax returns. Asset depletion shines when you have wealth but minimal income flow—retirees, trust fund recipients, stock traders.
DSCR loans beat asset depletion for investment properties where rental income covers the payment. Foreign national loans fit better for non-US citizens without domestic asset history.
The trade-off is rate vs. documentation. Asset depletion costs more than conventional but requires zero income verification—just account statements showing balances.
San Rafael's median home prices mean you need substantial assets to qualify. A $1.5M purchase with 25% down requires roughly $800K-1.2M in liquid assets depending on depletion term and debt ratios.
Marin County properties often require larger reserves. Lenders want 12-24 months PITI in liquid assets after closing, on top of down payment and closing costs.
We see this loan used frequently for downsizers moving from Ross or Tiburon into San Rafael condos. They've sold a primary residence and hold proceeds in investments while shopping for the next home.
IRAs, 401(k)s, stocks, bonds, mutual funds, and savings accounts qualify. Lenders take 70% of retirement account values to account for early withdrawal penalties.
Expect to need 2-3x your loan amount in liquid assets. For a $1.2M loan, you'd need $2.4M-3.6M depending on depletion term and lender guidelines.
Yes, this program works for primary residences and second homes. Investment properties typically require DSCR loans instead.
No, this is just a calculation method. You never touch the assets—lenders use the formula to create qualifying income for approval purposes only.
Minimum 620, but 680+ gets better rates and terms. Higher scores offset the non-traditional income documentation in underwriting.
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.