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Asset Depletion Loans in Ukiah
Ukiah attracts retirees and early-exit entrepreneurs who built wealth but stopped W-2 work. Asset depletion loans let you leverage liquid accounts—brokerage, savings, money market—to qualify for financing.
This loan makes sense for Mendocino County buyers who sold businesses or tech equity. Your 401k or stock portfolio becomes your qualifying income stream.
Lenders calculate a monthly income figure by dividing your liquid assets by the loan term. A $1.2 million portfolio becomes $5,000/month over 20 years—enough to qualify for most Ukiah properties.
You need $500,000+ in liquid assets for most programs. Credit score minimums sit at 660-680 depending on the lender. Higher asset balances can offset lower credit scores.
Lenders divide your total liquid assets by loan term months—typically 240 or 360 months. That number becomes your qualifying income. You still need reserves covering 12-24 months of payments.
Asset depletion sits in the non-QM space. Not every wholesale lender offers it, and those who do apply different asset calculations. Some count 100% of stocks, others discount by 30%.
Retirement accounts face additional haircuts—many lenders only count 60-70% due to withdrawal penalties. We compare how each lender calculates your specific portfolio mix.
Rates run 1-2% above conventional loans. Expect 7.5-9% depending on profile. Larger down payments and higher credit push rates lower.
Asset depletion works best when you have $1 million+ in liquid accounts. Below that threshold, bank statement or DSCR loans often price better and qualify easier.
We see this loan close fastest when borrowers provide clean brokerage statements showing stable balances. Wild month-to-month swings create underwriting delays.
Ukiah's lower price points mean smaller loan amounts. That makes qualification easier—you need less asset depth than buyers targeting coastal Mendocino markets.
Bank statement loans work better if you run ongoing business income through accounts. Asset depletion makes sense when you're truly asset-rich but income-light.
DSCR loans beat asset depletion for investment properties. Foreign national loans apply if you lack U.S. credit history alongside your assets.
Think of asset depletion as the retirement-phase loan. Bank statements fit active business owners. Choose based on where your money actually sits.
Ukiah's median home prices stay below $600k for most properties. That price range means a $1 million portfolio qualifies you comfortably with 20% down.
Mendocino County sees seasonal population—retirees escaping Bay Area heat. Asset depletion loans close slower than conventional, so start 60-90 days before your target closing.
Rural property appraisals take longer here. Factor extra time for properties outside city limits or on larger parcels.
Stocks, bonds, mutual funds, savings, and money market accounts qualify. Retirement accounts count at discounted values—typically 60-70% of balance.
Expect 20-30% down minimum. Larger down payments improve rates and expand lender options significantly.
Some lenders allow it, but DSCR loans almost always work better for rentals. Asset depletion fits primary and second homes best.
Most programs start at 660-680 minimum. Higher scores unlock better rates and more flexible asset calculations.
Plan for 45-60 days from application to closing. Mendocino County appraisals and asset verification extend timelines beyond conventional loans.
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.