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Asset Depletion Loans in Tiburon
Tiburon attracts retirees, executives with stock compensation, and investors who don't fit conventional income documentation. Asset depletion loans let you qualify using liquid assets instead of W-2s or tax returns.
Many Tiburon buyers hold wealth in portfolios, retirement accounts, or trust funds that traditional underwriting ignores. This loan converts your asset base into qualifying income for properties most conventional loans won't touch.
Lenders calculate your qualifying income by dividing liquid assets by the loan term. A borrower with $3 million in assets applying for a 30-year loan shows $100,000 annual income on paper.
You typically need 20-30% down and reserves equaling 12-24 months of payments. Credit scores start at 660, though 700+ gets better pricing. The asset account must be liquid—retirement funds, brokerage accounts, and savings all count.
Asset depletion lives in the non-QM space, so you won't find these loans at Wells Fargo or Chase. Portfolio lenders and specialized non-QM shops dominate this market with vastly different terms.
One lender might require 70% asset depletion while another uses 100%. Rate spreads between lenders often hit 100-150 basis points on identical borrower profiles. Shopping multiple lenders matters more here than any conventional loan.
Most Tiburon buyers using asset depletion own multiple properties and understand leverage. The mistake is assuming all asset depletion programs treat your portfolio the same way. Some lenders haircut stock holdings 30% while others take full value.
I've closed deals where switching lenders added $400K in buying power using identical assets. Ask how each lender calculates depletion percentage, whether they haircut equities, and if retirement accounts require age-based restrictions.
Bank statement loans work better if you have business income flowing through accounts. Foreign national loans suit offshore buyers who keep assets abroad. DSCR loans make sense for pure investment properties where rent covers the note.
Asset depletion shines when you're retired, living off investments, or hold concentrated stock positions you don't want to liquidate. It's the only program that treats a $5 million portfolio as income without requiring you to sell a share.
Tiburon properties often exceed conforming limits, pushing buyers into jumbo territory where asset depletion becomes one of few non-QM options. Waterfront homes and lots on the peninsula command premium pricing that requires creative qualification.
Marin County buyers frequently include executives with unvested RSUs, retirees downsizing from larger Bay Area homes, and trust fund beneficiaries. Asset depletion handles all three scenarios conventional underwriting rejects.
Stocks, bonds, mutual funds, savings, CDs, and retirement accounts all count. Most lenders require assets remain liquid and verifiable through recent statements.
No, you keep your investments. Lenders use the account balance to calculate income mathematically without requiring you to sell anything.
Expect 1-2% above conforming rates. Rates vary by borrower profile and market conditions, with stronger credit and lower LTV improving pricing.
Yes, though DSCR loans often offer better terms for pure rentals. Asset depletion works best for primary or second homes.
Minimum 20% down, with 25-30% more common on higher loan amounts. Larger down payments improve rates and approval odds significantly.
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.