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Asset Depletion Loans in Loomis
Loomis attracts retirees and high-net-worth buyers who hold wealth in investments rather than W-2 income. Traditional lenders reject these borrowers despite seven-figure portfolios.
Asset depletion loans convert your liquid assets into qualifying income. A $2 million portfolio can generate $66,000 in annual qualifying income without selling a single share.
This makes sense in a Placer County town where many buyers downsized from expensive metros or sold businesses. Your Schwab statement becomes your income verification.
You need minimum $500,000 in liquid assets to make this work. Stocks, bonds, mutual funds, and money market accounts all count—retirement accounts have restrictions.
Lenders divide your total assets by 360 months to calculate monthly income. Credit scores start at 660, though 700+ unlocks better rates.
Most programs allow 80% loan-to-value, meaning 20% down. Higher asset levels can push LTV to 85% with the right lender.
Only non-QM lenders offer asset depletion—your local credit union won't touch this. We work with 15+ lenders who specialize in portfolio-based qualification.
Rate spreads between lenders run 1-2% on identical scenarios. One lender counts retirement accounts at full value, another at 70%—that changes your buying power significantly.
Most lenders require two months of statements showing consistent balances. Market volatility matters less than average balance over the statement period.
We see three Loomis profiles who use this: tech equity recipients who retired early, sold-business owners living on investments, and Bay Area transplants with real estate proceeds.
The math works best when you have $1.5M+ in assets for a $600K purchase. Below that ratio, bank statement or 1099 loans often price better.
Timing matters—apply when your portfolio shows stable or rising values. A 20% market dip right before underwriting can kill your qualifying income.
Bank statement loans work better if you have business income flowing through accounts. Asset depletion makes sense when wealth sits static in investment accounts.
DSCR loans beat asset depletion for rental property purchases—the property income qualifies you. Asset depletion shines for primary residences when you lack employment.
1099 loans require showing contractor income. Asset depletion needs zero income documentation, just proof you own the investments.
Loomis properties under $750K fit asset depletion limits perfectly. Above that, you're into jumbo asset depletion territory where lender options shrink.
Placer County's mix of horse properties and standard homes doesn't affect this loan type. Lenders focus on asset verification, not property characteristics.
Many Loomis buyers keep their portfolio managers in the Bay Area. We work with statements from any US financial institution—Chase, Fidelity, Vanguard all work fine.
Most lenders allow it but discount the balance by 30% to account for withdrawal penalties. A $1M 401k becomes $700K for qualification math.
Lenders average your balance across two statement months. One down month won't sink you if the overall trend shows adequate assets.
No. You only liquidate what you need for down payment and closing costs. The rest stays invested.
Expect 1.5-3% higher than conventional rates. Your asset level and credit score determine where you land in that range.
Yes. Some lenders let you stack social security or pension income with asset depletion to boost 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.