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Asset Depletion Loans in Atwater
Atwater's affordability draws retirees and self-funded buyers who have capital but no W-2 income. Asset depletion loans let you use liquid assets as qualifying income instead of tax returns or pay stubs.
This loan works best for borrowers with substantial savings buying in Merced County's lower-priced markets. Your retirement accounts, brokerage statements, and cash reserves become your income proof.
Lenders divide your total liquid assets by 360 months to create a monthly income figure. A borrower with $900,000 in assets shows $2,500 monthly income for qualification purposes.
You need $200,000 minimum in liquid assets to make this loan worthwhile. Most Atwater deals require 20-30% down, so count on bringing significant cash to closing.
Credit scores start at 660 for most programs. Lenders verify assets through two months of statements showing consistent balances, not sudden deposits.
Eligible assets include checking, savings, retirement accounts, stocks, bonds, and mutual funds. Real estate equity and business assets don't count unless they're liquidated and seasoned for 60 days.
Asset depletion sits in the non-QM space, so you won't find it at Wells Fargo or Bank of America. SRK CAPITAL accesses 200+ wholesale lenders who price these loans differently based on your asset mix.
Rates run 1.5-3% higher than conventional loans because lenders see depleting assets as riskier than steady paychecks. Larger asset portfolios get better pricing.
Some lenders only count 70% of retirement account values due to early withdrawal penalties. Others accept 100% if you're over 59.5 years old and penalty-free.
Atwater buyers using this loan usually fall into two camps: early retirees with no pension income and business owners who sheltered income but accumulated wealth. Both have money but look broke on paper.
Don't drain your assets to barely qualify. If the math shows $2,000 monthly income but your housing payment is $1,800, lenders see that red flag even if debt ratios work.
Shopping this loan across lenders matters more than conventional products. One lender might count your IRA at 70% while another uses 100%, changing your qualifying income by thousands monthly.
Bank statement loans work better if you have business revenue flowing through accounts. Asset depletion fits when your money sits idle in investments without monthly deposits.
DSCR loans make sense for Atwater investment properties where rental income covers the mortgage. Asset depletion applies to primary residences where you're living off savings.
1099 loans require proving contract income through tax returns. If you're avoiding tax return documentation entirely, asset depletion becomes your path forward.
Atwater's median prices stay well below $400,000, making asset depletion qualification easier than in coastal California. You need less total portfolio value to show adequate income.
Merced County appraisals process quickly, but non-QM loans add 5-10 days to closing timelines for asset verification. Plan 45 days from application to funding.
Many Atwater buyers use this loan for downsizing from Bay Area sales. That home sale gives you liquid assets but no ongoing income, making asset depletion the logical choice.
Expect $200,000-$300,000 in liquid assets minimum. Lenders divide your total by 360 months to create qualifying income, and you need enough to cover mortgage payments plus other debts.
Yes, but lenders may only count 70% of the balance if you're under 59.5 due to early withdrawal penalties. Over that age, most lenders use the full amount.
No. Asset depletion is a calculation method only. Your investments stay invested; lenders just use the balance to determine theoretical monthly income.
Most programs need 20-30% down. Lower down payments exist but trigger higher rates and stricter asset requirements for approval.
Expect 1.5-3% higher rates since this is non-QM financing. Rates vary by borrower profile and market conditions, with larger portfolios getting better pricing.
Yes if you're both on the loan. All liquid assets belonging to borrowers on the application count toward the total portfolio calculation.
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.