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Asset Depletion Loans in Lodi
Lodi attracts retirees and investors with significant assets but limited W-2 income. Asset depletion loans let you qualify based on liquid holdings—stocks, bonds, retirement accounts—instead of employment.
San Joaquin County offers better pricing than Bay Area markets while maintaining access to Sacramento and Stockton. Asset-based financing works well here for buyers downsizing from expensive metro areas with equity to deploy.
Lenders divide your liquid assets by 360 months to calculate qualifying income. A borrower with $1.8M in stocks generates $5,000 monthly income for qualification purposes.
Expect minimum assets of $500K-$750K depending on purchase price. Credit scores typically need to hit 680+. You'll still verify assets through recent bank and brokerage statements.
Only specialized non-QM lenders offer asset depletion programs. Portfolio lenders price these individually based on asset type, loan-to-value, and liquidity.
Rates run 1.5-2.5% above conventional mortgages. That spread tightens with larger down payments and substantial reserves beyond the depletion calculation.
Most borrowers I close with this program are retired before 65 or sold businesses without continuing income. They have money but don't fit traditional income boxes.
Lenders treat different assets differently. Stocks and bonds deplete at full value. Retirement accounts might only count at 70% due to early withdrawal penalties. Know these calculations before you shop properties.
Bank statement loans work if you have business income but messy tax returns. Asset depletion fits when you have no income stream at all, just accumulated wealth.
DSCR loans make sense for investment properties. Asset depletion handles primary residences where rental income doesn't apply. Choose based on property use and income source.
Lodi's vineyard estates and ranch properties attract buyers liquidating expensive coastal real estate. Asset depletion works perfectly for this demographic shift.
San Joaquin County transfer taxes and insurance costs stay reasonable compared to coastal counties. That leaves more buying power for buyers converting assets into housing equity in wine country.
Stocks, bonds, mutual funds, and money market accounts count at full value. Retirement accounts like 401(k)s and IRAs typically count at 60-70% due to potential penalties.
Most lenders restrict asset depletion to primary residences and second homes. For rentals in San Joaquin County, DSCR loans work better since they use property income.
Expect rates 1.5-2.5 percentage points higher than conventional mortgages. A 25% down payment and 680+ credit score get you the best pricing available.
No. Lenders verify account balances but don't require you to sell anything. They calculate qualifying income mathematically from current holdings.
Most lenders want $500K-$750K minimum in liquid assets. That generates $1,388-$2,083 monthly qualifying income when divided by 360 months.
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.