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Asset Depletion Loans in Mountain House
Mountain House draws retirees and high-net-worth buyers who sit on substantial assets but show minimal W-2 income. Asset depletion loans let you qualify using liquid accounts—stocks, bonds, retirement funds—without proving traditional employment.
This planned community's newer construction and suburban pricing attract buyers transitioning out of Bay Area careers. Many have seven-figure portfolios but can't document salary income the way conventional underwriting demands.
Lenders divide your total liquid assets by 360 months to calculate qualifying income. A $1.8 million portfolio generates $5,000 monthly income for qualification purposes, regardless of actual withdrawals.
You'll need 620+ credit and typically 20-30% down. Asset accounts must be liquid—retirement funds, brokerage accounts, money markets. Real estate equity and business valuations don't count toward the depletion calculation.
Asset depletion sits in non-QM territory, so you won't find it at Wells Fargo or Chase. Portfolio lenders and specialty finance companies dominate this space, with loan amounts typically capped at $3-4 million.
Rates run 1.5-3% above conventional benchmarks. Rates vary by borrower profile and market conditions. Most lenders require full asset documentation—three months of statements showing stable balances, not recent deposits that inflate the picture.
Asset depletion works brilliantly for the retiring tech exec buying in Mountain House, poorly for someone who just sold a business and parked proceeds temporarily. Underwriters want seasoned assets with stable values, not one-time cash events.
Don't drain accounts to hit 20% down if it pushes you below the income threshold. We run scenarios across multiple asset levels to find the optimal balance between down payment size and qualifying power.
If you have rental income or dividend distributions, DSCR loans might beat asset depletion by focusing on property cash flow instead of depleting principal. Bank statement loans work better when you operate a business generating consistent deposits.
Asset depletion shines when your wealth sits idle in investments and you don't want to create taxable events by liquidating. It's the cleanest path for truly retired borrowers with no income story to tell.
Mountain House's community facilities district taxes add $200-400 monthly to housing costs. Asset depletion underwriting includes these Mello-Roos obligations in debt ratios, which can squeeze qualification more than expected.
This city's distance from major employment centers actually strengthens asset depletion applications—you're not pretending to commute, you're genuinely living on accumulated wealth. That narrative makes sense to underwriters in ways it wouldn't for downtown San Francisco purchases.
Plan on $1.5-2M minimum for comfortable qualification on median-priced homes. More assets mean stronger approval odds and better rate options.
Yes, but lenders typically apply a 30% reduction to retirement accounts to account for early withdrawal penalties and taxes. IRA and 401k balances count after this haircut.
No. Asset depletion calculates theoretical income for qualification only. You never have to liquidate or create distributions to satisfy the loan.
Current non-QM rates run 7.5-9.5% depending on credit and down payment. Rates vary by borrower profile and market conditions.
Expect 30-45 days from application to closing. Asset verification adds time compared to conventional loans but moves faster than full-doc business income analysis.
Yes. Lenders will add Social Security, pensions, or rental income to your asset-derived income for stronger qualification.
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.