Loading
Asset Depletion Loans in Dos Palos
Dos Palos sits in Merced County's agricultural heartland, where traditional W-2 income doesn't tell the full story. Retirees, investors, and business owners here often hold significant assets but show minimal taxable income.
Asset depletion loans let you qualify using liquid accounts — stocks, bonds, retirement funds. This matters in a farming community where wealth sits in land equity and diversified portfolios rather than monthly paychecks.
Lenders calculate your qualifying income by dividing liquid assets by 360 months. A borrower with $900,000 in accessible accounts shows $2,500 monthly income for qualification purposes.
You typically need at least $500,000 in verifiable liquid assets after down payment and reserves. Credit scores start at 680, though 700+ gets better pricing. The asset accounts must be seasoned for 60-90 days.
This is non-QM territory. Your local bank won't touch it. You need wholesale lenders who specialize in asset-based underwriting, and programs vary wildly between shops.
Some lenders accept only brokerage accounts. Others include 401(k) and IRA balances at 70% value. A few allow foreign assets with proper documentation. We shop 15-20 asset depletion lenders to find which one counts your specific portfolio most favorably.
Most borrowers stumble by not understanding the 60-day seasoning requirement. If you just moved money between accounts or liquidated property, that delays closing. Plan asset positioning before you start shopping.
The biggest mistake is assuming all assets count equally. One lender might value your IRA at 100%, another at 70%. That difference changes your qualifying amount by thousands per month. We run your portfolio through multiple lenders before you pick a property.
Bank statement loans work better if you run business income through accounts. They look at deposits, not asset balances. Asset depletion makes sense when your money sits invested, not flowing monthly.
DSCR loans beat asset depletion for pure investment properties because rental income qualifies you without touching personal assets. Use asset depletion for primary homes or when rental math doesn't work.
Dos Palos property values run conservative compared to coastal California. That works in your favor — you need less asset depletion to qualify for local purchase prices. A $1.2M portfolio qualifies you well here.
Appraisals can lag in smaller Central Valley markets. Give your lender comp data if you're buying newer construction or renovated properties. Asset depletion lenders already price for risk, so rural location doesn't hurt as much as with conventional loans.
Checking, savings, money market, brokerage accounts, stocks, bonds, and mutual funds count at full value. Retirement accounts like 401(k) and IRA typically count at 60-70% of balance depending on lender.
Some lenders accept foreign assets with proper documentation and currency conversion. You need official bank statements translated to English and verified through your broker's compliance process.
Expect rates 1.5-3% higher than conventional loans. You're paying for the flexibility of no income verification and portfolio-based qualification instead of employment history.
No. Once you close, lenders don't monitor those accounts. The assets only matter for qualification purposes during underwriting and must remain until funding.
If you have substantial retirement savings, asset depletion works better than conventional loans. Social Security alone rarely qualifies borrowers for adequate purchase amounts in any program.
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.