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Asset Depletion Loans in Lincoln
Lincoln attracts retirees and high-net-worth buyers with substantial savings but no W-2 income. Asset depletion loans let you qualify using investment accounts, not paystubs.
This program works well in Placer County where buyers have liquidity but unconventional income streams. Lenders convert your assets into qualifying monthly income using a standard formula.
Lincoln's housing market moves slower than Sacramento metro areas, giving asset-based buyers time to structure deals. You need enough reserves after down payment to satisfy underwriting calculations.
You need minimum 620 credit and substantial liquid assets after your down payment. Most lenders require $500K to $2M in qualifying accounts depending on loan amount.
Lenders divide your total assets by 360 months to calculate monthly income. A $1M portfolio becomes roughly $2,778 monthly qualifying income under standard formulas.
Acceptable assets include checking, savings, stocks, bonds, mutual funds, and retirement accounts. Real estate equity and business assets typically don't count.
Asset depletion sits in the Non-QM space with fewer lenders than conventional programs. Rates run 1-2 points higher than agency loans but beat hard money significantly.
Not all Non-QM lenders offer asset depletion. Some require asset dissipation showing three months of account activity, while others accept recent statements.
Pricing varies widely between lenders based on loan-to-value and reserve amounts. Shopping multiple wholesale sources matters more here than with standard mortgages.
Most Lincoln buyers pursuing asset depletion are selling larger Bay Area properties or drawing retirement funds. They have money but complexity lenders can't handle through traditional channels.
The 360-month divisor kills deals for borrowers with marginal assets. You need roughly 15 times your monthly payment in liquid accounts after closing costs and reserves.
I steer clients toward bank statement loans if they have any business income showing. Asset depletion works best for truly retired borrowers with zero earned income.
Bank statement loans offer better rates if you have business deposits or 1099 income. Asset depletion only makes sense when you literally have no income documentation.
Foreign national loans require larger down payments but don't count your assets against qualifying ratios. DSCR loans work better for investment properties in Lincoln.
Compare all Non-QM options before committing. Each program prices differently based on your specific asset and income mix.
Lincoln properties under $750K work best for asset depletion since you need fewer qualifying assets. The program struggles on higher-priced homes requiring $2M+ in liquid accounts.
Placer County tax assessments and HOA fees factor into debt ratios even with asset-based qualifying. Keep total housing payment under 43% of your calculated asset income.
Appraisals in Lincoln sometimes lag on newer construction near Twelve Bridges. Build extra time for valuations when using Non-QM financing with tighter underwriting timelines.
Plan on $750K minimum in liquid accounts after your down payment. Lenders divide remaining assets by 360 months to calculate qualifying income against your mortgage payment.
Yes, retirement accounts qualify if accessible without penalty. Lenders typically discount IRA and 401k balances by 70% to account for taxes and early withdrawal restrictions.
Rates vary by borrower profile and market conditions. Expect 1-2 percentage points above conventional rates, typically 8-10% range for well-qualified borrowers.
No, asset depletion requires owner occupancy. Use DSCR loans for rental properties since they qualify based on property income instead of personal assets.
Figure 30-45 days from application to closing. Non-QM lenders manually review files instead of using automated systems, adding time versus conventional loans.
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.