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Asset Depletion Loans in Truckee
Truckee attracts retirees, trust fund beneficiaries, and early-exit tech founders with substantial liquid assets but minimal W-2 income. Asset depletion loans let you qualify using investment accounts, not paystubs.
Second home buyers and ski property investors dominate this market. Many have seven-figure portfolios but can't show traditional income streams. That's exactly who this loan serves.
Lenders divide your liquid assets by 360 months to calculate qualifying income. A $2 million portfolio generates $5,555 monthly income for qualification purposes. Simple math, powerful results.
You need $500,000 minimum in liquid assets for most programs. Some lenders go as low as $250,000. Stocks, bonds, mutual funds, and retirement accounts all count. Real estate equity doesn't.
Expect 20-30% down depending on property type and credit score. Credit scores start at 660 for most asset depletion programs. Primary residences get better terms than second homes.
The asset accounts must be seasoned at least 60 days. Lenders want to see the money's been there, not deposited last week to game the system.
Asset depletion lives in the non-QM space, which means fewer lenders and more variation in guidelines. We track about 15 active lenders offering these programs with meaningfully different qualification formulas.
Some lenders use a 60-month asset divisor instead of 360, which doubles your qualifying income. Others allow 100% of retirement accounts while competitors cap it at 70%. These differences massively impact your buying power.
Rates run 0.75-1.50% above conventional mortgages. You're paying for flexibility. Rates vary by borrower profile and market conditions, but expect 7.5-8.5% in current market conditions.
Most Truckee buyers using asset depletion are buying vacation homes, not primary residences. That changes everything about loan structure and pricing. Second homes face tighter ratios and higher rates.
I see buyers chase the wrong lender because they got a rate quote without understanding the asset calculation. A lender using a 60-month divisor at 8.2% beats one using 360 months at 7.9% every time if you're asset-constrained.
Common mistake: assuming you need to liquidate assets to close. You don't. The money stays invested. Lenders just verify the accounts exist and calculate theoretical income from the balance.
Bank statement loans work better if you run business income through personal accounts. Asset depletion makes sense when your wealth isn't flowing through monthly bank deposits.
DSCR loans beat asset depletion for pure investment properties where rental income covers the mortgage. But for second homes in Truckee with no rental plans, asset depletion is often the only option.
Foreign national loans overlap with this audience but require different documentation and typically higher down payments. If you have a U.S. credit profile, asset depletion usually offers better terms.
Truckee's median prices sit well above conforming loan limits, which pushes more buyers into non-QM programs anyway. Many properties exceed $1 million, making alternative documentation standard practice here.
Short-term rental restrictions in parts of Nevada County complicate DSCR strategies. Asset depletion sidesteps that entirely since you're not relying on rental income projections to qualify.
Winter access and property maintenance create unique expenses that traditional debt ratios miss. Lenders using asset depletion tend to be more flexible about total obligations because they're already pricing for non-standard profiles.
Most lenders require $500,000 minimum in liquid assets. With a 360-month divisor, that creates $1,389 monthly qualifying income before other factors.
Yes. Retirement accounts qualify, though some lenders discount them by 30% to account for future tax liability and penalties.
No. Assets stay invested. Lenders verify the accounts exist and use the balance to calculate theoretical monthly income for qualification.
Expect 25-30% down for second homes. Primary residences can go as low as 20% with strong credit and substantial asset reserves.
Asset depletion rates run 0.75-1.50% higher than conventional loans. You're paying for documentation flexibility, not just interest on the money.
Yes. Many borrowers layer asset depletion income with Social Security, pensions, or investment distributions to maximize qualifying power.
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.