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Merced attracts retirees, investors, and business owners who hold real wealth — just not a W-2. Asset depletion loans are built for exactly that borrower.
This is a non-QM loan. That means it falls outside standard lending guidelines. Lenders calculate income by dividing your liquid assets over a set term instead of checking pay stubs.
Typically 680+
Min Credit Score
Divided over 60–84 mo
Asset Calculation
None — assets only
Income Docs Required
20–30%
Typical Down Payment
Non-QM
Loan Type
Lenders typically divide eligible assets by 60 to 84 months to calculate monthly income. A $1.2M portfolio could generate $14,000–$20,000 in qualifying income.
Eligible assets usually include checking, savings, brokerage, and retirement accounts. Illiquid assets like real estate equity or business ownership rarely count.
Your local bank almost certainly won't offer this. Asset depletion is a non-QM product. You need wholesale lenders who specialize in it.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several of them actively write asset depletion loans in California's Central Valley, including Merced.
The biggest mistake I see: borrowers trying to use retirement accounts without understanding the haircut. Many lenders discount IRAs and 401(k)s by 30–40% before calculating income.
Get your asset statements organized before you apply. Lenders want 2–3 months of statements showing consistent balances. Late deposits or wire transfers raise flags.
Bank statement loans work better if you run an active business with regular deposits. Asset depletion works best when your wealth is parked, not flowing.
DSCR loans are built for rental investors and ignore personal income entirely. If you're buying an investment property in Merced, DSCR may be a cleaner fit.
Merced is home to UC Merced and a growing rental market. Retirees relocating from the Bay Area often arrive with significant liquid assets but zero current employment.
Central Valley prices are more moderate than coastal California. That works in your favor — you need fewer assets to generate qualifying income for a Merced purchase.
Checking, savings, and brokerage accounts typically qualify. Retirement accounts often count at a discount. Real estate equity does not.
They divide your eligible assets by a set number of months — usually 60 to 84. That monthly figure becomes your qualifying income.
No. Any borrower with sufficient liquid assets can qualify. Retirees are common, but so are investors and business owners between ventures.
Requirements vary by lender. Many non-QM lenders start at 680. Better scores open up better rates. Rates vary by borrower profile and market conditions.
Yes, but DSCR loans may be a better fit for rentals. Asset depletion works well for primary or second home purchases.
Conventional loans require documented employment income. Asset depletion replaces that requirement entirely with verified liquid assets.
Asset Depletion Loans in Merced