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Asset Depletion Loans in Rocklin
Rocklin attracts retirees and high-net-worth individuals who don't fit traditional income boxes. Many have seven-figure portfolios but minimal W-2 income.
Asset depletion loans convert your liquid assets into qualifying income. A borrower with $2 million in stocks can qualify based on that wealth, not employment.
Lenders divide your total liquid assets by 360 months to calculate monthly qualifying income. $1.8 million in assets equals $5,000 monthly income.
Most programs require 620+ credit and 20% down minimum. The asset account must be in your name and remain liquid after closing.
Not every lender offers asset depletion. You need non-QM specialists who understand portfolio-based underwriting.
Each lender calculates differently. Some discount retirement accounts by 30%. Others accept 100% of liquid value. This variance matters significantly.
I run asset depletion scenarios for Rocklin buyers weekly. The biggest mistake is not counting all eligible assets upfront.
Combine accounts strategically. If your spouse has $800K and you have $1.2M, joint application gets you both pools. That's $5,555 monthly versus $3,333.
Bank statement loans work better if you have business income. Asset depletion works when you have wealth but minimal cash flow.
Compared to DSCR loans, asset depletion lets you buy primary residences. DSCR is investment property only. Different tools for different situations.
Rocklin's proximity to Roseville and tech-heavy Lincoln means many buyers here are early-exit entrepreneurs. They have stock options, not paystubs.
HOA communities near Whitney High require lenders comfortable with condos. Not all asset depletion lenders approve condos. This eliminates options if you don't pre-screen.
Stocks, bonds, mutual funds, CDs, money markets, and retirement accounts. Real estate equity and business ownership typically don't count.
No. Lenders calculate theoretical income from assets, but you keep them invested. You must show remaining reserves after closing.
With 20% down, you need roughly $1.8-2.4 million in liquid assets depending on the lender's calculation method and rate.
Yes, but lenders often discount retirement accounts by 30-40% since early withdrawal penalties exist. IRA and brokerage accounts get better treatment.
Most asset depletion programs require 620 minimum. Better credit gets better rates, but your asset depth matters more than score.
Expect 30-45 days. Non-QM underwriting takes longer than conventional because it's manual review, not automated approval systems.
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.