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Asset Depletion Loans in Stockton
Stockton draws retirees and entrepreneurs who don't fit W-2 underwriting. Asset depletion loans let you qualify based on your investment accounts instead of traditional income.
This program makes sense when you have substantial savings but minimal tax returns. We see this with former tech workers, early retirees, and business owners who minimize reported income.
San Joaquin County properties often price below regional averages. That means your assets stretch further here than in Bay Area markets where similar programs require larger portfolios.
Lenders divide your total liquid assets by 360 months to create qualifying income. A $720,000 portfolio generates $2,000 monthly income for underwriting purposes.
You need 20-30% down payment depending on the property type. Credit scores start at 680 for most programs, though some lenders go to 660 with larger assets.
Retirement accounts, brokerage balances, and savings count. Real estate equity doesn't unless it's liquid. Lenders discount stock portfolios by 30% to account for volatility.
Most asset depletion lenders operate as non-QM specialists. Rates run 1-2% higher than conventional loans because these aren't Fannie or Freddie products.
You won't find this at Wells Fargo or Bank of America. Portfolio lenders and private institutions dominate this space. Our access to 200+ wholesale lenders matters here.
Rate differences between lenders can hit 0.75% on identical scenarios. Some cap loan amounts at $2 million while others go to $3.5 million in California.
Most borrowers overpay because they shop one lender. We recently saved a Stockton client $340 monthly by finding a lender who counted his IRA at 100% instead of 70%.
Asset calculations vary wildly between lenders. Some average your last two statements. Others use the lowest balance from 60 days. That variance changes your qualifying amount significantly.
Watch prepayment penalties. Many asset depletion loans carry 2-3 year penalties. If you plan to refinance when rates drop, negotiate that upfront or pay slightly higher rates for flexibility.
Bank statement loans work better if you have business revenue. Asset depletion fits when you're living off investments without active income.
DSCR loans make sense for rental properties. Asset depletion handles primary residences and second homes where rental income doesn't exist.
If you have both assets and business income, we compare approval odds and rates across programs. Sometimes splitting your borrowing across two properties with different loan types saves money.
Stockton has significant inventory in the $400K-$600K range. That pricing lets a $1 million portfolio qualify you comfortably with standard debt ratios.
Lincoln Village and Brookside neighborhoods attract retirees using these programs. Appraisals move quickly here compared to rural San Joaquin County areas.
Property insurance costs matter more than in coastal markets. Budget $1,800-$2,400 annually. Some lenders include insurance in debt ratio calculations, others don't.
County transfer taxes stay reasonable. Focus on confirming your lender counts your specific account types before locking rates.
Checking, savings, money market, brokerage, and retirement accounts count. Real estate equity doesn't unless liquidated. Lenders discount stocks 30% for volatility.
With 25% down, you need roughly $625K in verified liquid assets at most lenders. That's $375K down payment plus portfolio generating $1,390 monthly income.
Yes. Lenders count the balance without requiring withdrawal. They divide it by 360 to create qualifying income, discounting based on their specific guidelines.
Asset depletion rates currently run 7.5-9.5% depending on credit and assets. Rates vary by borrower profile and market conditions. We shop across lenders daily.
Most lenders require two years of returns to verify you're not hiding income. They check assets match returns. Some programs skip returns with larger down payments.
Expect 30-45 days in Stockton. Asset verification takes longer than income verification. Appraisals move normally since inventory levels support quick comps.
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.