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Asset Depletion Loans in San Marcos
San Marcos attracts retirees and high-net-worth buyers who've accumulated wealth outside traditional W-2 income. Asset depletion loans let you qualify based on your investment accounts, not monthly paychecks.
This program works for buyers with substantial liquid assets—typically $500K or more in stocks, bonds, or retirement accounts. Lenders calculate qualifying income by dividing your assets over the loan term.
Expect these loans to price higher than conventional options. You're paying for flexibility when your bank statements show millions but your tax returns show minimal income.
Lenders divide your liquid assets by the loan term to create qualifying income. A $1.2M portfolio on a 30-year loan generates roughly $40K annual qualifying income.
You'll need 620-640 minimum credit score, though 700+ gets better pricing. Down payments start at 20% for primary homes, 30% for investment properties.
Only certain assets count—stocks, bonds, mutual funds, and retirement accounts. Real estate equity and business valuations don't qualify under most programs.
Expect full asset documentation: two months of statements showing balances, plus letters from custodians verifying account ownership and liquidity.
Asset depletion lives in the non-QM space. You won't find this at Wells Fargo or your local credit union—it requires specialty lenders.
Our 200+ lender network includes a dozen shops that price these aggressively. Rate spreads between lenders run 0.75-1.25% on the same profile.
Some lenders cap loan amounts at $2M, others go to $4M. If you're buying in North County's higher-end pockets, lender selection matters for approval.
Processing takes 30-45 days due to asset verification. Plan for longer timelines than conventional loans—sellers need to know you're not closing in three weeks.
Most borrowers overpay because they apply with the first lender who says yes. We see 6.5% quotes on deals that should price at 5.75% with the right lender.
Asset location matters. IRAs require different calculation methods than taxable accounts. A good broker structures your asset presentation to maximize qualifying income.
Consider asset depletion when bank statement loans don't work—typically because your business expenses are too high or you're early in retirement without two years of self-employment history.
Blended strategies sometimes win. We've paired asset depletion with investment property cash flow to boost qualifying income without liquidating portfolios.
Bank statement loans work better if you've got consistent business deposits. Asset depletion suits the opposite scenario—low reported income but substantial savings.
Foreign national loans require larger down payments (30-40%) but don't need U.S. credit. If you're an expat with domestic assets, asset depletion prices better.
DSCR loans make sense for investment properties where rent covers the mortgage. Asset depletion handles primary residences or properties with negative cash flow.
1099 loans need two years of self-employment history. Asset depletion works day one of retirement or business sale—no waiting period for income seasoning.
San Marcos sits in North County's retirement corridor. We see asset depletion used by former executives, business owners post-exit, and early retirees downsizing from coastal properties.
The city's lower price points versus Carlsbad or Encinitas mean your asset portfolio stretches further. A $1.5M nest egg that won't qualify in Del Mar works fine here.
HOA fees in San Marcos communities add to debt ratios. Lenders include these in calculations, so high association dues can reduce your maximum loan amount.
Property taxes run lower than coastal areas but still matter for qualification. Factor in 1.1-1.2% of purchase price annually when calculating total housing costs.
Typically $500K minimum, but $750K+ works better for most purchase prices. Lenders divide your total by the loan term to calculate monthly qualifying income.
Yes, retirement accounts qualify. Some lenders apply a 70% haircut to account for taxes and penalties, reducing your effective qualifying balance.
No, assets stay invested. Lenders verify balances for qualification but don't require you to sell stocks or withdraw from retirement accounts.
Rates vary by borrower profile and market conditions. Expect 0.5-1.5% above conventional rates, with better pricing for 740+ credit and larger down payments.
Bank statement loans work better with consistent business deposits. Choose asset depletion when you have substantial savings but minimal current income or high write-offs.
Yes, many lenders allow blending asset depletion with Social Security, pensions, or rental income. This increases your total qualifying income without liquidating assets.
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.