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Retired or semi-retired borrowers in Montclair often have real wealth — savings, brokerage accounts, retirement funds. They just don't have a W-2 to show for it.
Asset depletion loans solve that problem. Lenders divide your liquid assets over a set period and treat the result as monthly income.
620+
Min Credit Score
60–84 months
Asset Division Period
None (assets only)
Income Docs Required
30–40% typical
Retirement Account Haircut
Non-QM
Loan Type
Lenders typically divide eligible assets by 60 to 84 months. That number becomes your qualifying income on the application.
Expect to need strong reserves and a minimum credit score. Most asset depletion programs start at 620, with better pricing above 700.
Asset depletion is a non-QM product. Most banks and credit unions won't touch it. You need a broker with wholesale non-QM access.
HousingWire flagged that Pennymac TPO just rolled out a non-QM suite that includes asset qualifier loans — that expands the wholesale options brokers can shop for you.
The biggest mistake I see: borrowers bringing illiquid assets. Real estate equity and business ownership stakes don't count here.
Checking, savings, money market, and taxable brokerage accounts work best. IRAs and 401(k)s count too — usually at a haircut.
Bank statement loans work better if you have active business income. Asset depletion is the right call when income has stopped or slowed.
DSCR loans are another option if the Montclair property you're buying will generate rent. Asset depletion fits owner-occupied and second homes well.
Montclair sits in San Bernardino County, where buyers get more purchasing power per dollar than in LA County next door.
Retirees relocating from higher-cost areas often arrive with large liquid portfolios. Asset depletion loans are built for that exact profile.
Checking, savings, money market, and brokerage accounts qualify. Retirement accounts like IRAs and 401(k)s count at a discount.
Yes, but a DSCR loan often fits investment properties better. Asset depletion works for primary and second homes too.
It depends on the loan amount and loan term used. A broker can run the math on your specific asset pool and purchase price.
The process is different, not harder. You need documented liquid assets instead of income verification. Non-QM lenders are built for this.
Not through retail banks typically. A wholesale broker with non-QM lender access is your best path to this program.
Yes, non-QM loans carry slightly higher rates than conventional. Rates vary by borrower profile and market conditions.
Asset Depletion Loans in Montclair