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Asset Depletion Loans in Willits
Willits draws retirees and entrepreneurs who've built wealth outside traditional W-2 jobs. Asset depletion loans let you qualify using stocks, bonds, or cash instead of employment income.
This Mendocino County town sees buyers who sold businesses, inherited assets, or retired early. Asset depletion converts your investment accounts into qualifying income for mortgage approval.
Lenders divide your liquid assets by 360 months to create monthly income. A $1.8M portfolio generates $5,000 monthly for qualification purposes.
You need 20-30% down and credit above 680. Post-closing reserves matter—lenders want to see assets remain after your down payment and closing costs.
Most portfolio lenders and Non-QM specialists offer asset depletion. Banks like Chase and Wells Fargo run similar programs but with stricter asset requirements.
Rate pricing runs 1-2% above conventional loans. Expect 7-9% depending on your down payment and credit profile. Rates vary by borrower profile and market conditions.
I've closed these for Willits buyers with Schwab accounts worth $2M+ who show zero tax return income. The calculation is simple but documentation matters—statements need 60-90 days of history.
Retirement accounts work differently. Some lenders count 70% of IRA value due to tax implications. Others exclude retirement assets entirely and only use taxable accounts.
Bank statement loans work better if you have business income but messy tax returns. Asset depletion fits when you have wealth but minimal earned income.
DSCR loans make sense for rental properties. But for primary homes in Willits with substantial investment portfolios, asset depletion offers cleaner qualification math.
Willits property values stay below $750K for most single-family homes. Your asset depletion calculation needs to support the payment plus Mendocino County property taxes around 1.1%.
Rural properties here sometimes need larger reserves. Lenders want 12-18 months if you're buying acreage or homes on septic systems outside town limits.
For a $500K home with 25% down, you need roughly $1.35M in liquid assets to generate qualifying income. That covers the $375K loan payment plus taxes and insurance.
Some lenders count retirement accounts at 70% value due to taxes and penalties. Others exclude them entirely and only consider taxable investment accounts.
Stocks, bonds, mutual funds, and cash accounts all work. Real estate equity and business value typically don't count as liquid assets.
No. You only liquidate enough for down payment and closing costs. Remaining assets stay invested and count toward your qualifying income calculation.
Expect 1-2% higher than conventional rates. A 6.5% conventional rate means 7.5-8.5% for asset depletion with similar credit and down payment.
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.