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Asset Depletion Loans in Santee
Santee attracts retirees and high-net-worth buyers who've accumulated wealth outside traditional W-2 income. Asset depletion lets you qualify using portfolio balances instead of employment history.
This loan type works for buyers with liquid assets who can't show consistent pay stubs. Most Santee borrowers using asset depletion have $500k+ in accessible accounts and want to avoid liquidating for cash purchases.
Lenders calculate monthly income by dividing total assets by 360 months. A borrower with $1M in liquid assets shows $2,778 monthly income for qualification purposes.
You need 620+ credit and usually 20-30% down. Acceptable assets include stocks, bonds, mutual funds, and retirement accounts. Real estate equity doesn't count.
Only about 40 of our 200+ wholesale lenders offer asset depletion programs. Each lender uses different depletion schedules and asset treatment rules.
Some lenders apply 70% haircuts to retirement accounts. Others count 100% of liquid assets. Rate differences span 1-2% between the most aggressive and conservative lenders.
Most Santee buyers using asset depletion are either early retirees or business owners with wealth tied up in investments. They want to keep portfolios earning returns rather than liquidating.
The math only works if you have substantial assets relative to purchase price. I typically see this loan succeed when assets equal 3-4x the loan amount needed.
Asset depletion beats bank statement loans when you have significant liquid assets but irregular income. Bank statement borrowers typically show $20-40k monthly deposits, while asset depletion works with dormant accounts.
Compared to liquidating for a cash purchase, this loan preserves market exposure. If your portfolio averages 8% annual returns and the loan costs 7.5%, you maintain wealth-building capacity.
Santee home prices favor this program for move-up buyers and retirees downsizing from coastal areas. A borrower with $800k in retirement accounts can qualify for a $350k loan without touching employment history.
San Diego County requires standard appraisals regardless of loan type. Asset depletion doesn't change title or escrow processes, just how lenders verify income.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts like IRAs and 401ks qualify. Real estate equity and business assets don't count toward the calculation.
With 25% down, you'd need a $300k loan. At 360-month depletion, that requires roughly $900k-$1.2M in qualifying assets depending on lender haircuts and debt ratios.
Yes, expect 1.5-3% higher than conforming rates. Non-QM lenders price for additional risk since income isn't employment-verified.
Most lenders limit asset depletion to primary residences and second homes. For investment properties, DSCR loans that qualify on rental income work better.
No, assets remain invested. Lenders verify balances through statements but don't require liquidation except for your down payment and closing costs.
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.