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Asset Depletion Loans in Mammoth Lakes
Mammoth Lakes draws early retirees, seasonal workers, and investors with irregular income streams. Traditional lenders struggle here because ski town economics don't fit W-2 templates.
Asset depletion loans work when you have substantial savings but minimal documented income. Lenders divide your liquid assets by 360 months to calculate qualifying income.
This makes sense for second home buyers with retirement accounts or ski instructors sitting on stock portfolios. The resort economy creates exactly the borrower profile these loans target.
You need substantial liquid assets—typically $500K minimum for most lenders. Credit scores usually start at 680, though some lenders go to 660 with larger down payments.
Lenders count taxable accounts, stocks, bonds, and mutual funds. They'll apply a 70% haircut on volatile assets to protect against market swings.
Retirement accounts work differently—some lenders exclude them entirely, others allow partial use. Each lender has different asset calculation methods, which is where broker access matters.
Asset depletion programs live in the non-QM space. Only specialized portfolio lenders and private institutions offer them—your local bank won't have this product.
Each lender calculates qualifying income differently. One might divide by 360 months, another by 240. Some haircut volatile assets at 30%, others at 50%.
Rates run 1-2% above conventional mortgages. You're paying for flexibility in underwriting. Rates vary by borrower profile and market conditions.
The lender you choose determines whether your assets qualify. Shopping across 10+ asset depletion lenders isn't optional—it's how you get approved.
Most Mammoth Lakes borrowers using asset depletion fall into three groups: early retirees buying second homes, entrepreneurs liquidating businesses, and seasonal workers with inherited wealth.
We've closed asset depletion loans where conventional lenders denied the same borrower. The difference was finding a lender who counted retirement accounts at 70% instead of excluding them entirely.
Timing matters here. If you're pulling assets from investments, coordinate with your financial advisor. Some lenders need 60-day seasoning on recently deposited funds.
The biggest mistake is assuming all asset depletion programs work the same. They don't. One lender might approve you while three others decline based purely on calculation methodology.
Bank statement loans work better if you have business income but messy taxes. Asset depletion wins when you have minimal income but significant savings.
DSCR loans make sense for rental properties where the property cash flow justifies the loan. Asset depletion works for primary or second homes where DSCR doesn't apply.
Foreign national loans require different documentation but also serve high-net-worth borrowers. The choice depends on citizenship status and where your assets are held.
Mammoth Lakes property insurance costs hit asset depletion borrowers harder than conventional buyers. Lenders calculate debt-to-income using the full PITI payment, and fire insurance here isn't cheap.
Second home classification affects rates and down payment requirements. If you're buying a ski condo you'll rent occasionally, expect lenders to treat it as investment property.
HOA fees run high in resort complexes with heated driveways and snow removal. Some asset depletion borrowers qualify based on assets but fail because HOA dues push debt ratios too high.
Appraisals take longer in Mono County due to limited comparable sales. Build extra time into your timeline—rural resort markets don't move at urban speed.
Most lenders require $500K minimum in liquid assets. With higher assets and strong credit, you can qualify for larger loan amounts using the 360-month calculation method.
Some lenders allow it, others don't. Those that do typically apply a 30-50% discount to retirement account balances when calculating qualifying income.
Rates run 1-2% above conventional mortgages. Your specific rate depends on credit score, down payment, and property type. Rates vary by borrower profile and market conditions.
No. These loans qualify you based on assets, not income documentation. You'll provide bank and investment account statements instead of tax returns.
Expect 3-4 weeks from application to closing. Non-QM loans take longer than conventional because each file gets manual underwriting and individual lender review.
Yes, but lenders will treat it as investment property requiring 20-25% down. If you plan to rent it out, DSCR loans might offer better terms.
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.