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Asset Depletion Loans in Escondido
Escondido's housing market attracts retirees, entrepreneurs, and high-net-worth buyers who don't show traditional income. Asset depletion loans let you qualify using liquid assets—stocks, bonds, savings—instead of W-2s.
This program divides your total assets by 360 months to calculate qualifying income. A borrower with $1 million in accounts shows $2,778 monthly income for approval purposes.
Most Escondido buyers using asset depletion are downsizing from coastal areas or relocating from out of state with significant portfolios. Traditional lenders reject these profiles despite strong financials.
You need minimum 620 credit and $500,000+ in liquid assets for most programs. Some lenders require $1 million. Only accounts you can liquidate count—no retirement funds with early withdrawal penalties.
Expect 20-30% down payments. Lenders want larger equity cushions on non-QM programs. Investment properties require 25-30% down minimum.
Cash, savings, checking, stocks, bonds, and mutual funds all qualify. Retirement accounts count only if you're old enough to withdraw penalty-free. Real estate equity doesn't count.
Asset depletion sits in the non-QM space with roughly 15-20 active wholesale lenders. Each has different asset calculation methods and minimum thresholds.
Some divide assets by 240 months instead of 360, creating higher qualifying income. Others allow 70-80% of asset value rather than 100%. These details change your buying power by six figures.
Rate spreads between lenders run 0.50-1.25% on identical borrower profiles. Shopping matters more on asset depletion than conventional loans because pricing isn't standardized.
Most Escondido asset depletion deals close between $600K-$1.2M. Buyers have $1.5-$3M in portfolios and want homes priced well below their asset base.
Common mistake: borrowers liquidate investments for larger down payments. Keep assets intact—they're your income source for qualification. Put down the minimum that gets you approved.
We see three typical profiles: tech employees with stock comp but minimal salary, business owners who defer income, and retirees living off investments. All get rejected by traditional lenders despite zero default risk.
Bank statement loans work better if you have business revenue flowing through accounts. Asset depletion fits buyers with investment portfolios who don't run money through checking accounts monthly.
DSCR loans beat asset depletion for investment properties with rental income. Foreign national loans handle non-residents. Asset depletion fills the gap for U.S. residents with liquid wealth but no paycheck.
You'll pay 1-2% higher rates than conventional loans. But conventional loans won't approve you. The choice isn't asset depletion versus conventional—it's asset depletion versus no mortgage at all.
Escondido's affordability relative to coastal San Diego makes it attractive for buyers stretching portfolios. You need less asset base here than in Del Mar or La Jolla to qualify for comparable homes.
Many Escondido asset depletion buyers come from retirement communities or wine country areas. They're trading equity from expensive markets into more manageable price points while preserving investment accounts.
Condos and planned communities dominate certain Escondido neighborhoods. Some lenders restrict asset depletion on condos or require extra reserves. Know the property type constraints before making offers.
Most lenders require 2-3x the home price in liquid assets. For a $700K home, expect to show $1.4M-$2.1M in qualifying accounts.
Only if you're 59½ or older and can withdraw penalty-free. Early withdrawal penalties disqualify the account from calculations.
Asset depletion rates run 1.5-2.5% above conventional loans. Expect 8-9% in current markets with strong credit and large down payments.
No. Assets must remain in accounts through closing. Lenders verify balances at funding to ensure qualifying income holds.
Plan 30-45 days from application to clear-to-close. Non-QM underwriting moves slower than conventional loans due to manual asset verification.
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.