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Asset Depletion Loans in Fort Bragg
Fort Bragg attracts retirees with significant nest eggs but no W-2 income. Asset depletion loans turn those savings into qualifying income.
Coastal Mendocino buyers often have portfolios from previous careers or property sales. These loans let assets do the talking instead of employment verification.
Lenders divide your liquid assets by 360 months to calculate monthly income. A $1M portfolio becomes $2,778 in qualifying income.
Most programs require 20-30% down and credit scores above 680. The asset accounts must be fully liquid and verified through recent statements.
Only specialized non-QM lenders offer asset depletion programs. Most conventional banks won't touch these deals.
Rate premiums run 1-2% above conventional loans. Expect closing costs similar to standard purchases but with appraisal scrutiny on coastal properties.
I close these regularly for Bay Area tech workers buying Fort Bragg retreats. They have stock compensation but irregular salary timing that confuses underwriters.
The 360-month calculation works against you on smaller balances. If you're borderline, combining this with a bank statement loan might deliver better leverage.
Bank statement loans use actual cash flow instead of dividing assets by 360. If you have business income, those often beat asset depletion rates.
Foreign national loans work similarly but don't require US credit. Asset depletion makes more sense for citizens with established credit profiles.
Fort Bragg's coastal location triggers stricter appraisal requirements. Lenders want detailed comps and may order second reviews on oceanfront homes.
Mendocino County's small buyer pool means fewer comparable sales. Underwriters scrutinize asset stability more when property resale looks uncertain.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts all qualify. Real estate equity and business ownership typically don't count.
Yes, but expect higher down payment requirements around 30%. Lenders view second homes as higher risk than primary residences.
Plan for 30-45 days total. Asset verification adds two weeks compared to standard loans, and coastal appraisals run slower.
No, lenders only verify the accounts exist. You keep assets invested throughout the process and after closing.
Both spouses' assets combine for qualification if both sign the loan. Individual accounts work only for solo borrowers.
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.