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Asset Depletion Loans in Sausalito
Sausalito attracts retirees, equity-rich buyers, and high-net-worth individuals who don't fit standard income documentation. Asset depletion loans convert liquid holdings into qualifying income.
This matters in Marin County, where many buyers have substantial portfolios but minimal reportable income. You qualify based on what you own, not what you earn on a paycheck.
Lenders divide your liquid assets by 360 months to create qualifying income. A borrower with $2M in accounts shows $5,556 monthly income for qualification purposes.
You typically need 620+ credit and significant reserves. Most deals require 20-25% down, though some programs accept 15% for strong profiles with deep reserves.
Eligible assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity and business holdings don't count under standard asset depletion guidelines.
Asset depletion sits in the non-QM space, not conventional or government lending. Rate premiums run 1-2% above conforming loans, reflecting the higher risk profile.
We work with specialized lenders who understand this product. Not every wholesale lender offers asset depletion, and underwriting standards vary significantly between institutions.
Some lenders discount retirement accounts by 30-40% to account for tax liability. Others apply full value. Shopping across our 200+ lender network captures these differences.
Most Sausalito buyers using asset depletion could qualify under bank statement programs if they show any self-employment income. Run both scenarios before committing to asset depletion.
Retirees with pension income often fare better combining partial pension documentation with asset depletion rather than going pure assets. We stack income sources to lower your rate.
The 360-month divisor hurts qualification power. A buyer with $1.5M qualifies for only $4,166 monthly income—that's a $900K loan at standard debt ratios, not the $2M+ many expect.
Bank statement loans work better if you have business income but messy tax returns. Foreign national loans suit international buyers with offshore assets that don't meet domestic asset depletion rules.
DSCR loans make sense for investment properties where rental income covers the mortgage. But for Sausalito primary residences with no rental component, asset depletion is the cleaner path.
1099 contractor income qualifies under stated income programs at similar rates. If you have any documented earnings stream, explore that before burning assets for qualification.
Sausalito's waterfront properties and hillside homes carry premium valuations. Asset depletion works well here because buyers typically have equity from prior sales or long-term investments.
Marin County properties don't fit starter-home profiles. If you're buying in Sausalito, you likely have assets—this loan type matches the local buyer demographic better than most Bay Area cities.
Appraisal complexities in Sausalito's unique housing stock sometimes extend timelines. Budget 45-60 days for closing rather than the 30-day standard on simpler loans.
For a $1.5M purchase, expect to show $2-3M in liquid assets after down payment. This creates enough qualifying income to support the loan at standard debt ratios.
Most lenders discount 401(k) and IRA balances by 30-40% for tax liability. Each lender treats retirement assets differently—we shop this across multiple options.
Yes, but lenders value them at the statement date, not peak values. Highly volatile holdings may face additional scrutiny or deeper discounts during underwriting.
Marin County tax rates reduce your qualifying power. Lenders include full PITI in debt ratios, and Sausalito's tax assessments consume more of your asset-derived income than inland counties.
Asset depletion requires 620+ credit in most programs. Recent late payments or collections need explanations, even with significant liquid holdings backing the loan.
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.