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Asset Depletion Loans in Roseville
Roseville attracts retirees, business owners, and real estate investors who hold substantial assets but lack W-2 income. Asset depletion loans let you qualify using stocks, bonds, retirement accounts, and liquid savings.
Placer County's affluent demographics make this a strong market for asset-based lending. Many borrowers here own multiple properties or run businesses that reduce their taxable income on paper.
Lenders convert your total liquid assets into a qualifying income stream by dividing the balance over a set number of months. This creates income on paper without needing tax returns or employment letters.
Most lenders require $500,000 minimum in liquid assets to consider asset depletion. Credit scores typically need to hit 680, though some programs accept 660 with larger down payments.
Down payment expectations run 20-30% for primary residences and 25-35% for investment properties. The higher your asset balance, the stronger your qualification becomes.
Acceptable assets include checking, savings, stocks, bonds, and retirement accounts like 401(k)s and IRAs. Real estate equity and business assets don't count as liquid for these calculations.
Asset depletion falls under non-QM lending, which means fewer lenders and higher rates than conventional loans. Not every mortgage company offers this product, even in markets like Roseville.
Rates typically run 1-2% above conventional mortgages. Lenders price based on your credit score, asset level, and loan-to-value ratio.
Working with a broker gives you access to 20+ non-QM lenders instead of one bank's guidelines. This matters because asset depletion calculations vary wildly between lenders.
I see three main groups using asset depletion in Roseville. Early retirees with IRAs who haven't started Social Security. Business owners showing low taxable income. Real estate investors holding multiple properties.
The divider matters more than most borrowers realize. Some lenders use 60 months, others use 84 or 120 months. A $1 million portfolio divided over 60 months creates $16,667 monthly income. Over 120 months, it drops to $8,333.
Don't liquidate assets before applying. Lenders want to see seasoned funds that have been in your accounts for at least two months. Moving money around raises red flags and delays closing.
Bank statement loans work better if you have consistent business deposits but lower liquid assets. Asset depletion requires larger portfolios but no income documentation at all.
DSCR loans make sense if you're buying rental property and the rent covers the payment. Asset depletion works for any property type when you have the portfolio to support it.
Foreign national loans require different documentation entirely. Asset depletion only works for US citizens and permanent residents with domestic bank accounts.
Roseville's median home prices favor borrowers with substantial assets. The city's location in Placer County attracts financially established buyers who fit the asset depletion profile perfectly.
Many Roseville buyers are relocating from Bay Area markets with significant equity from previous sales. That equity becomes the liquid asset base needed for qualification here.
The lack of state income tax concerns helps since this loan type ignores tax returns. California's high housing costs mean borrowers often need $750,000+ in assets to qualify for typical Roseville properties.
Yes. Lenders count your full 401(k) balance as an asset without requiring withdrawals. You keep the money invested while it qualifies you for the loan.
Most lenders require 680, though some accept 660 with 30% down. Higher credit scores unlock better rates and lower down payment requirements.
They divide your total liquid assets by a set number of months, typically 60-120. Higher dividers reduce your calculated income but show more conservative planning.
No. Asset depletion loans specifically avoid tax return requirements. Lenders verify your assets through bank and investment account statements only.
Yes. Asset depletion works for primary residences, second homes, and investment properties. Expect 25-35% down for non-owner-occupied purchases.
Rates vary by borrower profile and market conditions. Expect 1-2 percentage points above conventional rates, with pricing improving as your credit and assets increase.
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.