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Coronado attracts retired military officers, executives with stock portfolios, and trust fund heirs. Most don't pull W-2 income. Asset depletion loans let you qualify based on liquid holdings instead of paychecks.
Island properties command premium prices and many buyers carry substantial investments rather than salaries. Lenders divide your asset balance by 360 months to calculate qualifying income. A $2 million portfolio generates $5,555 monthly income for qualification purposes.
You need verified liquid assets in accounts like brokerage, savings, checking, or retirement funds. Most lenders require 620 minimum credit and 20-30% down payment. The asset total must support your monthly payment after division by 360 months.
Expect to provide 2-3 months of account statements proving asset stability. Lenders exclude real estate equity and business holdings from the calculation. Your total debt-to-income ratio still applies, but income comes from asset depletion formula instead of tax returns.
Asset depletion sits in the non-QM space, so you won't find it at Wells Fargo or Chase. We access wholesale lenders who specialize in portfolio-based underwriting. Each has different asset requirements and calculation methods.
Some lenders accept 70% of retirement account values while others use 100% of taxable investment accounts. Rate spreads vary by profile. A borrower with $3 million in liquid assets gets better pricing than someone at the $500,000 minimum threshold.
Coronado buyers using asset depletion typically fall into three camps: retirees with pensions and portfolios, military veterans transitioning to civilian life, and foreign nationals parking U.S. cash. The loan makes sense when your assets dwarf your reported income.
Don't assume you need millions. A $720,000 purchase with 25% down requires a $540,000 loan. At 7% over 30 years, that's roughly $3,590 monthly. You'd need about $1.3 million in qualifying assets after accounting for reserves and down payment.
Bank statement loans work better if you run a business and take minimal salary. DSCR loans apply when buying investment property since they ignore personal income entirely. Asset depletion fits borrowers with substantial savings but no business or rental income.
Foreign national loans allow non-citizens without U.S. credit to buy, but often require 30-40% down. If you have assets in U.S. accounts and some credit history, asset depletion offers better leverage with lower down payment requirements.
Coronado's limited inventory means properties move quickly when priced right. Asset depletion takes 25-35 days to close, slightly longer than conventional but faster than many non-QM programs. Get pre-approved before making offers on the island.
Condo buildings near the base and beach require HOA review. Some lenders restrict condos over $1 million in asset depletion programs. We verify project eligibility upfront to avoid surprises during underwriting. Navy families relocating with lump-sum payouts use this loan frequently.
Checking, savings, brokerage accounts, stocks, bonds, mutual funds, and retirement accounts like 401(k) or IRA. Real estate equity and business ownership don't qualify.
Depends on purchase price and down payment. A $900,000 home with 25% down needs roughly $1.5-1.8 million in liquid assets after reserves and closing costs.
No. Lenders verify you own the assets but don't require liquidation. You draw down payment and reserves from those accounts, keeping the rest invested.
Yes. Many lenders allow asset depletion for primary, second homes, and investment properties. Requirements and rates vary by property type.
Most lenders require 620 minimum. Scores above 700 unlock better rates. Lower scores mean higher rates or larger down payments.
Expect 1-2% higher than conventional rates due to non-QM structure. Strong asset position and credit can reduce the spread. Rates vary by borrower profile and market conditions.
Asset Depletion Loans in Coronado