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Asset Depletion Loans in Grass Valley
Grass Valley attracts retirees and investors with substantial assets but minimal W-2 income. Asset depletion loans turn your investment accounts into qualifying income.
Nevada County's slower-paced market gives you time to structure financing around your actual financial position. This loan type fits the demographic perfectly.
Many Grass Valley buyers have significant portfolios from Bay Area careers or business exits. Traditional underwriting ignores this wealth entirely.
Lenders divide your liquid assets by 360 months to create qualifying income. $1M in assets equals roughly $2,778 monthly income for qualification.
You need 620+ credit and sufficient assets to both close and qualify. Most deals require 20-30% down depending on property type.
Retirement accounts count but may be discounted 30-40% depending on age and penalties. Stocks and bonds typically count at 70% of value.
Cash reserves matter more than traditional ratios here. Expect lenders to want 12+ months reserves post-closing.
Five to seven non-QM lenders offer asset depletion in our network. Each calculates assets differently, so shopping matters.
Some count retirement accounts at full value if you're 59½ or older. Others apply strict haircuts regardless of penalty-free status.
Rates run 1.5-2.5% above conventional programs. Expect 8-9% range depending on credit, down payment, and asset composition.
Portfolio lenders occasionally offer better terms for borrowers with $2M+ in assets held with their institution.
This works best when you have $1.5M+ in liquid assets. Below that, bank statement or 1099 programs often make more sense.
We see this loan close fastest when assets are held in 1-2 accounts at major institutions. Five brokerage accounts slow everything down.
The age 59½ threshold matters enormously. If you're close, sometimes waiting beats accepting a 40% discount on your IRA value.
I've had deals where moving $200K from a small credit union to Schwab saved 0.5% on rate. Lender comfort with the institution matters.
Bank statement loans work better if you have business income but prefer not to document it traditionally. Asset depletion makes sense when income doesn't exist.
DSCR loans beat this option for investment properties with strong rent. Save your portfolio documentation for personal residences.
Foreign national programs overlap when international buyers have US assets. Those typically require larger down payments though.
The break-even point sits around $1.2M in assets. Below that, creative conventional structures or portfolio loans often win.
Grass Valley's $400K-$800K price range fits perfectly with typical asset depletion borrower profiles. Lower balances mean better debt-to-income ratios.
Nevada County appraisers move slower than metro markets. Start asset verification early while waiting for appraisal completion.
Many buyers here are downsizing from expensive Bay Area homes. The equity becomes the asset base that qualifies them.
Rural properties occasionally complicate this loan type. Lenders get pickier about acreage and well-septic when income is non-traditional.
Plan on $1M-$1.2M in liquid assets minimum. That covers 25% down plus creates enough monthly income to qualify at typical debt ratios.
Yes, but lenders discount them 30-40% for early withdrawal penalties. You'll qualify on 60-70% of the IRA balance, not the full amount.
No, only liquid assets in standard accounts count. Business equity doesn't qualify unless you liquidate it first.
Current range is 8-9% depending on credit score and down payment. Rates vary by borrower profile and market conditions.
Figure 30-45 days total. Nevada County appraisals add time, but asset verification moves faster than income documentation.
Absolutely. Lenders add documented pension income to your asset-derived income, often improving your qualifying position significantly.
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.