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Asset Depletion Loans in King City
King City attracts retirees and buyers with substantial assets but minimal W-2 income. Asset depletion loans let you qualify using your investment accounts, not traditional employment verification.
This program works well for Monterey County's agricultural landowners and families managing inherited wealth. Your bank balance becomes your income for qualification purposes.
Lenders convert your liquid assets into a monthly income stream over a set period, typically 60-120 months. A $1.2 million portfolio becomes $20,000 monthly income at 60-month depletion.
You need significant liquid assets—typically $500K minimum after down payment and reserves. Stocks, bonds, mutual funds, and savings accounts all count toward qualification.
Credit scores start at 620, but expect better rates at 680+. Down payment requirements run 20-25% for most borrowers in King City's market.
Lenders deplete your assets over 60-120 months to calculate qualifying income. Shorter depletion periods create higher monthly income but require more assets to cover the loan amount.
Asset depletion is a non-QM product, so most retail banks won't touch it. You need a broker with access to specialty lenders who understand this niche.
We work with 8-10 lenders who price asset depletion differently based on depletion period and asset type. Rate spreads between best and worst can hit 1.5 points.
Some lenders prefer retirement accounts, others want to see taxable investments. Shopping your profile across multiple lenders matters more here than with conventional loans.
We see this loan work best for three groups: early retirees with investment portfolios, business owners who shelter income, and beneficiaries managing family trusts. All have money but no W-2.
The 60-month depletion creates the highest qualifying income but requires massive assets. Most King City buyers use 84 or 120-month depletion periods for realistic qualification.
Don't drain the accounts—lenders calculate depletion for qualification only. Your actual assets stay in your control. You're proving ability to pay, not committing to liquidation.
Bank statement loans work better if you have irregular income flowing through accounts. Asset depletion makes sense when you have savings but minimal deposits.
Foreign national loans require similar down payments but don't need US credit history. Asset depletion wants established US credit but accepts non-traditional income sources.
DSCR loans work for investment properties where rental income covers payments. Asset depletion handles primary residences where you need to show personal capacity to pay.
King City's median home prices make this program accessible for buyers with mid-six-figure portfolios. You're not competing with coastal Monterey County pricing where asset requirements become prohibitive.
Agricultural families transitioning farmland to residential development often use asset depletion. They hold land equity but irregular farming income that doesn't qualify conventionally.
Monterey County property taxes run around 1.1% of assessed value. Lenders factor this into your debt-to-income calculation along with insurance and HOA fees if applicable.
Stocks, bonds, mutual funds, money market accounts, and savings all qualify. Retirement accounts like 401(k)s and IRAs typically count at 70% of value due to early withdrawal penalties.
No, your assets stay under your control. Lenders use depletion calculations to prove you could access funds if needed, not to require actual liquidation.
Rates run 1.5-2.5% higher than conventional mortgages. You're paying for flexibility to qualify without traditional income verification. Rates vary by borrower profile and market conditions.
Most lenders restrict asset depletion to primary residences and second homes. Investment properties typically require DSCR loans based on rental income instead.
Longer periods require fewer assets but generate lower qualifying income. We typically model 60, 84, and 120-month scenarios to find your optimal balance.
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.