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Asset Depletion Loans in Tracy
Tracy attracts retirees and early retirees with significant savings but limited W-2 income. Asset depletion loans let you qualify using investment accounts, not employment.
This program works for buyers with stock portfolios, retirement accounts, or cash savings who don't fit conventional income boxes. We see strong demand from Bay Area transplants downsizing to Tracy with equity from previous sales.
Lenders divide your liquid assets by 360 months to calculate qualifying income. A $720,000 portfolio generates $2,000 monthly qualifying income.
You need substantial assets—typically $500,000+ for most Tracy properties. Credit minimums run 660-680 depending on down payment. Eligible assets include stocks, bonds, retirement accounts, and cash holdings.
Only non-QM lenders offer asset depletion programs. Not every wholesale lender we work with has competitive terms—some require 30% down, others accept 20%.
Rates run 1.5-2.5 points above conventional mortgages. That premium reflects the non-standard underwriting. We shop across lenders because asset calculation methods and rate markups vary significantly.
This loan makes sense if you have the assets but hate the idea of liquidating investments to buy with cash. You preserve portfolio growth potential while accessing leverage.
Common mistake: assuming all assets count equally. Lenders discount retirement accounts by 30-40% because of early withdrawal penalties. Liquid brokerage accounts get better treatment. We structure asset documentation to maximize your qualifying power.
Bank statement loans work better if you run a business with deposits. Foreign national loans suit non-residents. DSCR loans apply to investment properties only.
Asset depletion is cleanest for retirees or people living on investment income. No tax returns, no bank statements, no business documentation. Just prove you own the assets.
Tracy's median home prices make asset depletion viable with portfolios around $600,000-$800,000. In Palo Alto, you'd need $3 million+ in assets for the same program.
Many Tracy buyers in this category sold Bay Area properties and want mortgage leverage instead of tying up all proceeds. They keep $700,000 invested and finance the Tracy purchase at 70-80% LTV.
Typically $500,000 to $800,000 depending on purchase price and down payment. A $720,000 portfolio generates $2,000 monthly qualifying income using standard 360-month depletion.
No. You prove ownership through statements. The assets stay invested. Lenders calculate theoretical income from your portfolio balance without requiring you to sell anything.
Yes, but lenders discount retirement accounts 30-40% because of withdrawal penalties. A $500,000 IRA might count as $300,000-$350,000 for qualification purposes.
Add 1.5 to 2.5 percentage points to current conventional rates. Rates vary by borrower profile and market conditions. Your down payment size and credit score affect the final rate.
You preserve investment returns and maintain liquidity. If your portfolio earns 8% and your mortgage costs 7%, you keep the spread while staying diversified and liquid.
Plan for 25-35 days from application to closing. Asset verification is simpler than income documentation, but non-QM lenders process fewer loans than conventional shops.
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.