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Asset Depletion Loans in Gustine
Gustine's housing market attracts retirees, farmers selling land, and investors with substantial assets but irregular W-2 income. Asset depletion loans let you qualify based on what you have in the bank, not what appears on a tax return.
This matters in Merced County where ag-based wealth is common. A rancher selling cattle or a retiring business owner often holds six figures in liquid assets but shows minimal taxable income.
Lenders calculate income by dividing your liquid assets by 360 months. $500k in stocks becomes $1,389 monthly qualifying income. You need at least $300k in verifiable assets for most programs.
Credit requirements start at 680. Most lenders want 20-30% down depending on asset level. The higher your reserves, the lower the rate and down payment requirement.
Only non-QM lenders offer asset depletion programs. Fannie, Freddie, FHA won't touch them. Rates run 1-2% above conventional but you're buying approval that wouldn't exist otherwise.
We shop 200+ wholesale lenders to find who counts which assets and how aggressively they deplete. One lender might count 80% of your IRA, another 100%. That difference affects your qualifying income by thousands monthly.
Most Gustine borrowers using asset depletion are selling property elsewhere or accessing inherited accounts. The mistake is not understanding seasoning. Lenders want assets sitting in your account 60-90 days minimum.
If you just sold a farm in Iowa and wired $800k to your bank, wait three months before applying. Documentation matters too. We need statements showing consistent balances, not one-time deposits disappearing the next month.
Bank statement loans work if you have business income. Asset depletion works when you don't. Retirees living off investments choose asset depletion. Self-employed with expenses choose bank statements.
DSCR loans only finance rentals. Foreign national loans require different documentation. Asset depletion is the cleanest path when you have money but no traditional income documentation.
Gustine's agricultural economy means many residents hold wealth in land, equipment, or livestock sales rather than regular paychecks. Asset depletion bridges that gap when you're buying a primary residence in town.
Property values in Gustine run lower than coastal California. That helps because even $400k in assets can qualify you for homes here. In San Francisco, you'd need three times that for similar purchasing power.
Stocks, bonds, mutual funds, retirement accounts, and savings all count. Lenders typically apply 70-100% of value depending on account type and liquidity.
Yes, lenders count IRA and 401k balances for qualification. You don't withdraw the money or pay penalties—just prove the accounts exist.
For a $300k home with 25% down, you need roughly $350k in liquid assets minimum. That creates enough qualifying income to cover the mortgage payment.
Most carry 3-5 year prepayment penalties. Once income stabilizes, refinance to conventional. Plan the exit strategy before you sign.
Hard money costs 9-12% short-term. Asset depletion runs 7-8% for 30 years. You're building equity, not bridging a flip.
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.