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Asset Depletion Loans in Livingston
Livingston's agricultural economy creates unique income situations. Farmland sales, seasonal crop revenues, and equipment leasing don't fit W-2 boxes.
Asset depletion lets retired farmers and business owners qualify using bank accounts and investment portfolios. Your 401(k) becomes your income proof.
This program works well in Merced County where family wealth often sits in land equity and cash reserves rather than traditional paychecks.
Lenders divide your total liquid assets by 360 months to create monthly qualifying income. A borrower with $720,000 in accounts qualifies with $2,000 monthly income.
You need substantial assets—typically $500,000 minimum after down payment and reserves. Credit scores start at 660 but 700+ gets better terms.
Acceptable assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity and business inventory don't count.
Expect 20-25% down payments and 6-12 months of reserves kept liquid after closing. These aren't starter home loans.
Asset depletion sits in the non-QM space where fewer lenders operate. Only about 30 of our 200+ wholesale partners offer this program.
Rates run 1-2% above conventional loans due to portfolio lending risk. Expect pricing between 7.5-9.5% depending on asset strength and credit profile.
Some lenders cap loan amounts at $2 million while others go to $3 million. Livingston home prices rarely hit these limits but acreage purchases can.
Underwriting takes 3-4 weeks versus 2-3 weeks for conventional loans. Asset verification requires CPA letters for retirement accounts.
Most Livingston borrowers using asset depletion are 55+ who sold farmland or businesses. They have wealth but zero W-2 income.
Don't liquidate retirement accounts for down payments. That creates tax hits and reduces your qualifying assets simultaneously.
Lenders count 70% of IRA and 401(k) balances to account for future tax liability. A $1 million IRA calculates as $700,000 in usable assets.
If you're borderline on assets, consider a larger down payment. Smaller loan amounts require fewer total assets to qualify.
Bank statement loans work better if you have ongoing business income but messy tax returns. Asset depletion fits when you have no income at all.
DSCR loans make sense for rental properties in Livingston. Asset depletion covers primary residences and second homes only.
Foreign national loans require similar down payments but don't need U.S. credit history. Asset depletion demands solid domestic credit profiles.
If you're still working but income fluctuates seasonally, 1099 loans might offer better rates than asset depletion.
Livingston properties often include extra land parcels. Lenders count primary residence value only—adjacent lots need separate financing.
Merced County appraisals can lag 4-6 weeks during harvest season when appraisers prioritize farm sales. Plan for extended timelines in fall.
Well water and septic systems are common here. Lenders require functioning well certifications and septic inspections before closing.
Agricultural zoning doesn't disqualify you but properties generating farm income may need DSCR evaluation instead of asset depletion treatment.
Yes, if proceeds sit in liquid accounts like savings or money markets. Real estate equity itself doesn't count until converted to cash or securities.
You keep them. Lenders verify assets at closing but don't freeze or control them afterward.
Only if you'll live on the property as a primary or second home. Income-producing agricultural land requires commercial or DSCR financing.
Expect 30-45 days minimum. Asset verification through CPAs and custodians adds time compared to conventional loans.
Minimum is 660 but rates improve significantly at 700+. Below 680 limits your lender options substantially.
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.