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Asset Depletion Loans in Auburn
Auburn attracts retirees and asset-rich buyers who don't fit W-2 lending boxes. This historic Gold Country town sees substantial purchase activity from people selling Bay Area properties and reinvesting.
Traditional lenders reject borrowers with seven-figure portfolios because they lack regular paychecks. Asset depletion loans solve this by converting your investment accounts into qualifying income.
Placer County property values support jumbo financing through this program. Auburn's mix of historic downtown homes and modern developments both work with asset-based underwriting.
Lenders calculate income by dividing your total liquid assets by 360 months. A $1.8 million portfolio generates $5,000 monthly qualifying income under this formula.
You need 620+ credit and assets that remain after your down payment and reserves. Most programs require 20-30% down depending on property type and loan amount.
Acceptable assets include brokerage accounts, savings, CDs, and retirement funds. Real estate equity and restricted stock typically don't count toward the calculation.
Fewer than 30 lenders in our network offer true asset depletion programs. Each has different asset calculation methods and acceptable account types.
Rate spreads run 1-2% above conventional conforming loans. Portfolio size matters more than credit score for pricing in most cases.
Some lenders require full account statements for 60 days while others accept single-page verification. Documentation standards vary significantly between programs.
Maximum loan amounts reach $3-5 million with qualified borrowers. Auburn properties rarely hit these caps, giving asset-rich buyers substantial borrowing power.
This loan works best for recent retirees with portfolio wealth but no pension statements yet. We see it frequently with clients transitioning between career phases.
Don't drain investment accounts to make larger down payments. Keeping assets liquid often qualifies you for better terms than stretching for 30% down with depleted reserves.
Lenders treat different asset types differently. One might exclude IRAs while another counts 70% of the balance. Shopping this program across lenders creates $100K+ qualification differences.
Bank statement loans work better if you have business income to document. Asset depletion makes sense when your cash flow doesn't appear on statements.
DSCR loans beat asset depletion for investment properties with rental income. Use your assets for primary residences or second homes in Auburn instead.
Foreign national loans often combine asset-based underwriting with higher down requirements. Pure asset depletion typically offers better leverage for US citizens and residents.
Auburn's Gold Country location attracts second-home buyers using asset depletion for vacation properties. The 30-minute drive to Tahoe makes this a strategic purchase location.
Historic Old Town Auburn properties often need renovation financing. Asset depletion programs typically don't allow construction loans, limiting options for fixer-uppers.
Placer County appraisers understand asset-based borrowers and rarely question income sources. This differs from rural counties where non-QM loans face more scrutiny.
Auburn's proximity to Roseville and Sacramento means competing offers often include conventional financing. Asset depletion approvals take 3-5 days longer than standard programs.
Yes, most asset depletion lenders count accessible retirement accounts. They divide the balance by 360 months to calculate qualifying income.
Rates vary by borrower profile and market conditions, typically running 1-2% above conventional loans. Larger asset portfolios often secure better pricing.
No, you keep your investments intact. Lenders only require proof of asset ownership and calculate theoretical income from the balance.
You need enough for 20% down ($140K) plus reserves, plus additional assets to generate qualifying income. Roughly $400K minimum in liquid assets works for most scenarios.
Some lenders allow it, but DSCR loans work better for rentals. Asset depletion programs typically offer best terms for primary residences and second homes.
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.