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Asset Depletion Loans in Hollister
Hollister attracts retirees and investors with substantial portfolios but no W-2 income. Asset depletion loans let you qualify using stocks, bonds, and savings instead of paychecks.
San Benito County's smaller lender pool means most local banks won't touch these loans. That's where working with a broker who shops 200+ wholesale lenders becomes essential.
These loans work especially well for early retirees buying in Hollister's lower-cost neighborhoods. Your $2 million IRA can qualify you for mortgages that traditional income never would.
Lenders divide your liquid assets by 360 months to create a qualifying income figure. A $1.8 million portfolio becomes $5,000 monthly income for approval purposes.
You need 620+ credit and typically 20-30% down depending on asset strength. Retirement accounts, brokerage accounts, and savings all count toward your asset total.
The assets used for qualification must remain liquid during underwriting. You can't count real estate equity or illiquid business interests in most programs.
Asset depletion programs live in the non-QM space where wholesale lenders dominate. You won't find these at Wells Fargo or Bank of America branches in Hollister.
Each lender treats asset types differently. Some count 70% of retirement account balances, others count 100%. These differences swing your buying power by six figures.
Rate spreads between lenders run 0.5-1.5% on identical borrower profiles. Shopping multiple wholesale sources typically saves $200-400 monthly on a Hollister-area mortgage.
I see Hollister buyers mess this up by liquidating assets for down payments before closing. Those withdrawn funds no longer count toward your qualifying calculation.
Gift funds don't work here since the program requires you to own the assets. If family wants to help, they need to transfer ownership months before application.
Many borrowers qualify for higher amounts than bank statement or 1099 loans using the same profile. Asset depletion often beats other non-QM options for retired clients.
Bank statement loans require 12-24 months of business deposits. Asset depletion needs zero income documentation if your portfolio hits the target number.
DSCR loans only work on investment properties. Asset depletion covers primary residences and second homes throughout San Benito County.
Foreign national programs demand 30-40% down. Asset depletion typically qualifies at 20-25% down with strong portfolios and credit.
Hollister's median prices sit well within asset depletion comfort zones. A $700,000 purchase needs roughly $1.4 million in qualifying assets with standard underwriting.
San Benito County appraisers sometimes struggle with non-QM timelines. Build in 45-60 day closings rather than the 30-day schedules conventional loans hit.
Property insurance costs factor heavily into qualification here. Wildfire risk affects ratios more than in urban markets, so get insurance quotes early in the process.
Roughly double your target purchase price in liquid assets, assuming 25% down. A $600,000 home typically requires $1.2-1.5 million in qualifying accounts.
Yes, retirement accounts count. Most lenders apply 60-100% of the balance depending on penalties for early withdrawal and account type.
Most carry 2-3 year prepayment penalties typical of non-QM products. Some lenders offer penalty-free options at slightly higher rates.
Current asset depletion rates run 1-2.5% above conventional loans. Rates vary by borrower profile and market conditions based on credit and assets.
Yes, but lenders use current statement balances. Market volatility during underwriting can affect qualification if values drop significantly.
Asset depletion skips income documentation entirely and often qualifies higher. Better choice if you have substantial savings but inconsistent business deposits.
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.