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Encinitas attracts retirees, investors, and self-made earners. Many carry serious wealth — but no W-2 to show a bank.
Asset depletion loans solve that problem. Lenders count your liquid assets as income instead of requiring a paycheck.
680+
Typical Min Credit Score
None (asset-based)
Income Docs Required
Liquid assets only
Asset Types Accepted
Non-QM
Loan Type
Lenders take your eligible liquid assets and divide them over a set term — typically 60 to 360 months. That monthly figure becomes your qualifying income.
Retirement accounts, brokerage holdings, and savings all count. The higher your liquid net worth, the stronger your qualifying income looks.
Most retail banks won't touch asset depletion. They're built for W-2 borrowers with two years of tax returns.
Wholesale non-QM lenders handle these routinely. As a broker, we work with 200+ lenders — including specialists in asset-based income qualification.
The biggest mistake I see: borrowers submitting to a retail bank first, getting denied, and assuming they don't qualify. That denial means nothing here.
Asset type matters a lot. Illiquid assets like real estate equity usually don't count. We document what lenders will actually accept before we run numbers.
Bank statement loans work well if you have business revenue flowing monthly. Asset depletion works when your income is low but your balance sheet is strong.
DSCR loans are investor-only and tied to rental income. Asset depletion fits primary residences, second homes, and investment properties alike.
Encinitas is a coastal San Diego County market. Home prices run high, and many buyers here are coming out of equity-rich properties or long investment careers.
That borrower profile — significant assets, reduced active income — is exactly who asset depletion was designed for. This loan fits this market well.
Most lenders accept checking, savings, brokerage, and retirement accounts. Physical real estate and illiquid holdings typically don't count.
Yes. Asset depletion loans work for primary homes, second homes, and investment properties. Lender guidelines vary by property type.
Most non-QM lenders want a 680 or higher for asset depletion. Some programs go lower with larger asset reserves.
Lenders divide your eligible assets by the loan term in months. A $1.8M portfolio over 360 months equals $5,000 per month in qualifying income.
Yes — non-QM loans carry a rate premium over conventional financing. Rates vary by borrower profile and market conditions.
No. Any borrower with sufficient liquid assets can qualify. Retirees are common applicants, but this isn't limited to them.
Asset Depletion Loans in Encinitas