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Corona's housing market attracts retirees and business owners with significant assets but irregular income. Traditional lenders reject these buyers despite seven-figure portfolios.
Asset depletion loans divide your liquid assets by 360 months to create qualifying income. A $1.8 million portfolio generates $5,000 monthly qualifying income regardless of actual withdrawals.
Most lenders require $500,000 minimum in liquid assets after down payment and reserves. Credit scores typically need to hit 660, though some programs accept 620.
Assets must be in your name and fully liquid — no real estate equity or illiquid holdings. Expect 20-25% down for purchases and 70-75% max loan-to-value on refinances.
Only non-QM lenders offer asset depletion programs. Each calculates qualifying income differently — some use 360 months, others use 240 or 84.
Rate premiums run 1-2% above conventional mortgages. Shop across multiple non-QM lenders since overlays vary significantly on asset types and depletion methods.
Corona buyers using asset depletion usually own businesses or retired early from tech or healthcare. They have money but can't document traditional income streams.
I match the depletion calculation to the borrower's actual withdrawal needs. Someone living on $4,000 monthly shouldn't use a lender requiring proof of $8,000 qualifying income.
Bank statement loans work better if you have business income over $10,000 monthly. Asset depletion makes sense when deposits are irregular or you're fully retired.
DSCR loans beat asset depletion for investment properties since rental income qualifies you. Use asset depletion only for primary residences or second homes.
Corona's median home prices allow asset depletion to work with smaller portfolios than coastal California cities. A $750,000 purchase needs roughly $1.2 million in assets.
Riverside County appraisals move fast but lenders need 60-75 days for non-QM underwriting. Start early if competing in Corona's seller-friendly pockets near Green River Golf Club.
Minimum $500,000 liquid after down payment and reserves. For a $700,000 purchase, expect to show $1.1-1.3 million in qualifying assets total.
No. Lenders calculate theoretical income from your assets. You don't touch the money — it just proves your ability to make payments.
Yes, but lenders deduct 10% early withdrawal penalty if you're under 59½. IRAs and taxable accounts typically generate more qualifying income.
Rates run 1-2% above conventional loans. With good credit expect 7.5-8.5% as of early 2025. Rates vary by borrower profile and market conditions.
Plan for 60-75 days from application to closing. Non-QM loans require more documentation review than conventional mortgages.
They prefer conventional financing. Emphasize your large down payment and quick close capability when competing against other offers.
Asset Depletion Loans in Corona