Loading
Loading
Garden Grove's housing market attracts retirees, investors, and entrepreneurs who hold wealth in assets, not W-2 income. Asset depletion loans let you qualify using your portfolio value instead of employment verification.
Orange County's competitive market means buyers with substantial liquid assets need financing that matches their financial profile. Traditional lenders reject qualified borrowers simply because they don't fit conventional income documentation.
This loan type works for Garden Grove buyers with IRAs, investment accounts, or significant savings who can't show traditional income streams. Your assets become your qualifying income through a simple calculation formula.
Asset Depletion Loans in Garden Grove
Lenders divide your total liquid assets by 360 months to calculate qualifying income. A borrower with $1.8 million in qualified accounts shows $5,000 monthly income under this formula.
You need at least $500,000 in liquid assets for most programs. Credit scores typically start at 660, though some lenders require 700+ for competitive rates.
Qualified assets include checking, savings, stocks, bonds, retirement accounts, and CDs. Real estate equity and business assets don't count in most programs.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Garden Grove.
Garden Grove's housing market attracts retirees, investors, and entrepreneurs who hold wealth in assets, not W-2 income. Asset depletion loans let you qualify using your portfolio value instead of employment verification.
Orange County's competitive market means buyers with substantial liquid assets need financing that matches their financial profile. Traditional lenders reject qualified borrowers simply because they don't fit conventional income documentation.
This loan type works for Garden Grove buyers with IRAs, investment accounts, or significant savings who can't show traditional income streams. Your assets become your qualifying income through a simple calculation formula.
Asset depletion loans live exclusively in the non-QM space. You won't find this program at Chase or Wells Fargo.
We access 30+ non-QM lenders who price these loans differently. Some lenders let you exclude 30% of assets for reserves, others require you to deplete the full amount in calculations.
Rate spreads between lenders reach 0.75% on identical scenarios. Shopping multiple non-QM lenders saves Garden Grove borrowers $200-400 monthly on a $1 million loan.
Clients assume this loan costs significantly more than conventional financing. The gap's usually 0.5-1.25% higher, not the 2-3% spread borrowers fear.
The biggest mistake: depleting retirement accounts for a down payment instead of using asset depletion. Keep your portfolio intact and let it qualify you.
Garden Grove buyers often qualify for higher loan amounts using asset depletion than they would with their actual income. A $2 million portfolio generates stronger qualifying power than many six-figure salaries after tax deductions.
Bank statement loans work better for business owners with operating accounts and steady deposits. Asset depletion fits retirees and investors who hold wealth in portfolios.
Foreign national loans require more down payment but don't need U.S. credit history. Asset depletion needs strong U.S. credit but accepts lower down payments.
DSCR loans only work for investment properties using rental income. Asset depletion works for primary homes, second homes, and investment properties in Garden Grove.
Garden Grove's median home price requires substantial assets to generate qualifying income. A $900,000 home needs roughly $1.5 million in liquid assets for comfortable debt ratios.
Orange County's property tax rates and HOA fees in newer developments affect how much home your assets can qualify for. Higher monthly obligations mean you need larger portfolios.
Garden Grove's Vietnamese community includes many retirees and investors who hold significant assets overseas. Coordinate with international tax advisors on which foreign accounts qualify under U.S. lending standards.
Yes, but lenders only count 70% of retirement account values due to early withdrawal penalties and taxes. Non-retirement accounts qualify at full value.
Most lenders require 20% down for primary homes and 25-30% for investment properties. Higher credit scores can sometimes reduce these requirements to 15%.
No, you keep your assets invested. Lenders only use the calculation formula to determine qualifying income—you never liquidate accounts for the loan itself.
Expect 3-4 weeks from application to closing. Documentation is simpler than traditional loans since you're not verifying employment or income history.
Yes, lenders can combine your calculated asset income with Social Security, pensions, or rental income. This often helps you qualify for larger loan amounts.