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Asset Depletion Loans in Moreno Valley
Moreno Valley homebuyers with substantial assets can secure financing without traditional income verification. Asset depletion loans evaluate your liquid holdings to determine mortgage eligibility.
This non-QM solution serves retirees, investors, and self-employed borrowers in Riverside County. Your bank accounts and investment portfolios become your qualifying credentials.
Whether purchasing or refinancing in Moreno Valley, asset-based financing offers flexibility. Lenders calculate monthly income by dividing your total liquid assets over the loan term.
Lenders typically require substantial liquid assets in accounts like savings, stocks, or retirement funds. The asset total gets divided by a set number of months to create qualifying income.
Credit scores usually need to be 620 or higher for asset depletion programs. Down payments often start at 20% to 30% depending on the property type and borrower profile.
Documentation includes bank statements, investment account statements, and retirement account records. Rates vary by borrower profile and market conditions, typically higher than conventional loans.
Asset depletion loans fall under the non-QM category, meaning specialized lenders offer them. Traditional banks rarely provide this product, making broker expertise essential in Moreno Valley.
Working with an experienced mortgage broker gives you access to multiple non-QM lenders. Each lender calculates asset depletion differently, so comparing options matters significantly.
Some lenders allow 100% asset depletion while others use percentages based on account types. Retirement accounts may be calculated at 60-70% of value due to withdrawal penalties.
Asset depletion loans work exceptionally well for Moreno Valley retirees with healthy portfolios. Many don't want traditional employment but have substantial savings for homeownership.
Self-employed borrowers often find this easier than providing years of tax returns. Investors with significant liquidity benefit when rental income documentation proves challenging.
The key is matching your asset profile with the right lender program. Some programs require seasoning periods for recently deposited funds to prevent fraud.
Asset depletion loans differ from bank statement loans that use deposit history. They also contrast with DSCR loans focused solely on investment property cash flow.
For 1099 contractors, bank statement or 1099 loans might offer better rates. Foreign national loans serve non-citizens, while asset depletion works for anyone with qualifying assets.
Each non-QM option serves different borrower situations in Moreno Valley. Comparing all alternatives ensures you get the best fit and pricing for your circumstances.
Moreno Valley's diverse housing stock accommodates various investment strategies and retirement plans. From single-family homes to condos, asset depletion financing works across property types.
Riverside County's growing retirement community makes asset-based lending increasingly relevant. Many relocate here with substantial savings but no traditional employment income.
Local real estate opportunities attract investors using creative financing approaches. Asset depletion loans provide another tool for capitalizing on Moreno Valley's market potential.
Lenders divide your total qualifying liquid assets by a set number of months, typically 60-360 months. This creates a monthly income figure used for qualification purposes.
Qualifying assets include savings accounts, checking accounts, stocks, bonds, mutual funds, and retirement accounts. Most lenders discount retirement accounts by 30-40% due to penalties.
Yes, asset depletion loans work for both primary residences and investment properties. Requirements and down payments may differ based on property use and location.
Most lenders require minimum credit scores of 620-640 for asset depletion programs. Higher scores typically result in better rates and terms.
Asset depletion loans offer more flexibility but typically have higher rates. Rates vary by borrower profile and market conditions, usually 1-3% above 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.