Loading
Asset Depletion Loans in Monterey
Monterey attracts retirees and high-net-worth buyers who don't fit the W-2 income box. Asset depletion loans let you qualify using retirement accounts, brokerage statements, and liquid investments instead of traditional employment verification.
This program works well for coastal California buyers with significant portfolios but irregular income streams. Lenders convert your asset balance into hypothetical monthly income, typically dividing total assets by 60-360 months depending on the loan term.
With Monterey's mix of vacation properties and primary residences for affluent retirees, this loan type solves qualification gaps that conventional financing can't address.
Most lenders require $500,000 minimum in liquid assets to make the math work. Credit scores start at 680, though stronger borrowers get better rates. Down payment typically runs 20-30% depending on property type and asset strength.
Eligible assets include checking, savings, stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs. Real estate equity doesn't count—lenders want liquid holdings they can verify through statements.
Each lender calculates income differently, but most use a 60-month depletion period. A borrower with $1.2 million in assets would show $20,000 monthly income on the application.
Asset depletion falls under non-QM lending, which means your local bank won't offer it. These loans come from specialized private lenders who underwrite outside Fannie Mae guidelines. Rates run 1-3 points above conventional loans, reflecting the non-standard documentation.
SRK CAPITAL shops 200+ wholesale lenders to find programs that maximize your asset conversion rate. Some lenders use 60-month depletion, others stretch to 120 or 180 months—that difference can mean qualifying for $300,000 more in loan amount.
Expect 30-45 day closings once you submit statements. Lenders verify assets but skip employment verification entirely, which speeds up underwriting compared to bank statement programs.
The biggest mistake is not accounting for reserves. Lenders require 12-24 months of payment reserves on top of the assets used for income calculation. If you're using $1 million to qualify, you might need $1.3 million total to satisfy reserve requirements.
Timing matters with stock portfolios. Lenders use recent statements—usually 60-90 days old. If the market dropped 15% last quarter, your qualifying power dropped with it. We've seen borrowers wait for a market recovery before applying.
This loan makes sense when asset-rich clients refuse to liquidate investments earning 8-12% to avoid a mortgage. Paying 8% on a loan while keeping assets that return 10% creates positive arbitrage.
Bank statement loans work better for self-employed borrowers with steady deposits but no tax returns. Asset depletion targets the opposite profile: strong balance sheets with minimal cash flow. If you have both business income and assets, we run scenarios for each.
Foreign national loans require even larger down payments (30-40%) but don't require US credit history. Asset depletion keeps the 20-30% range and needs established US credit. DSCR loans work for investors buying rental property—asset depletion handles primary and second homes.
The right program depends on your complete financial picture, not just one data point. We evaluate all options before recommending the path with the lowest rate and easiest approval odds.
Monterey's coastal location attracts second-home buyers from Silicon Valley and Los Angeles who maintain primary residences elsewhere. Asset depletion works for these scenarios without complicated occupancy questions conventional lenders ask.
Property insurance costs more in coastal zones, which affects debt-to-income ratios even on asset-based programs. Budget $3,000-6,000 annually for insurance on ocean-view properties. Lenders factor this into your monthly payment calculation.
Condos in Monterey's coastal developments face stricter lender requirements. Some asset depletion programs cap condo financing at 70% LTV regardless of your asset base. We verify project eligibility before you write an offer.
Most lenders require $500,000 minimum in liquid assets. The exact amount depends on purchase price, down payment, and how the lender calculates depletion.
Yes. Retirement accounts like 401(k)s and IRAs qualify for asset depletion. Lenders typically count 70% of the balance to account for early withdrawal penalties.
Rates run 1-3 percentage points above conventional loans. Exact pricing depends on credit score, down payment, and asset strength. Rates vary by borrower profile and market conditions.
No. The assets remain invested—lenders only use statements to calculate qualifying income. You keep earning returns while the assets sit in your accounts.
Yes. This program works for primary residences, second homes, and some investment properties. Second homes typically require slightly larger down payments.
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.