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Asset Depletion Loans in Burlingame
Burlingame attracts retirees, entrepreneurs, and high-net-worth individuals who hold significant assets but lack traditional W-2 income. Asset depletion loans serve this demographic by converting liquid holdings into qualifying income.
San Mateo County's expensive real estate market makes asset-based financing particularly relevant. Many buyers possess substantial investment portfolios yet struggle with conventional income documentation requirements.
This loan type addresses the gap between wealth and traditional lending criteria. Borrowers can access financing by demonstrating asset strength rather than employment history.
Lenders calculate monthly income by dividing total liquid assets by a specified term, typically 60-360 months. The resulting figure becomes your qualifying income, regardless of actual employment status.
Acceptable assets include stocks, bonds, mutual funds, retirement accounts, and savings. Real estate equity and illiquid holdings generally don't count toward the calculation.
Credit requirements remain significant, with most programs requiring 680+ scores. Down payments typically start at 20-30%, and the strength of your asset portfolio directly impacts available terms.
Asset depletion programs come from specialized non-QM lenders rather than traditional banks. These lenders understand alternative income sources and structure loans differently than conventional products.
Each lender applies unique asset depletion formulas and acceptable asset lists. Some allow IRA withdrawals in calculations while others focus on immediately accessible funds.
Working with experienced mortgage brokers provides access to multiple non-QM lenders simultaneously. This comparison shopping reveals which programs offer the most favorable terms based on your specific asset composition.
The asset depletion calculation method dramatically affects your buying power. A 60-month depletion period yields five times more qualifying income than a 300-month calculation on identical assets.
Strategic asset positioning before applying strengthens your application. Consolidating accounts and timing your loan submission around portfolio valuations can improve qualification outcomes.
Rates vary by borrower profile and market conditions, with asset depletion loans typically pricing 1-3% higher than conventional mortgages. However, the ability to close without income documentation often outweighs the rate differential for qualified borrowers.
Bank statement loans suit self-employed borrowers with strong business cash flow, while asset depletion works better for those with investment wealth but minimal active income. The choice depends on whether your financial strength comes from earnings or holdings.
Foreign national loans overlap with asset depletion for international buyers holding US assets. DSCR loans serve real estate investors focused on rental income rather than personal qualification.
1099 loans require demonstrable independent contractor income, whereas asset depletion ignores income source entirely. Each non-QM product solves different documentation challenges.
Burlingame's position in San Mateo County means higher property values and correspondingly larger loan amounts. Asset depletion programs often work well here because local buyers tend to have significant portfolios.
The city's mature demographic includes many retirees who've accumulated wealth through careers in nearby tech hubs and finance centers. These residents hold substantial assets but may lack current employment.
Proximity to San Francisco creates a competitive market where alternative financing provides an edge. Asset-based qualification can expedite purchases when traditional documentation would slow the process.
Requirements vary by lender and property price. Most programs need sufficient assets to demonstrate sustainable income when divided by the depletion period. A $2 million home might require $600,000-$1,200,000 in qualifying assets.
Many lenders accept retirement accounts, though some discount their value or exclude them entirely. Each program has specific rules about which retirement assets count toward qualification calculations.
No, the assets remain yours. Lenders use a mathematical formula to calculate theoretical income from your holdings. You don't need to liquidate or withdraw funds during the loan process.
Rates vary by borrower profile and market conditions. Asset depletion loans typically carry higher rates than conventional financing, reflecting the alternative documentation structure and specialized lender programs.
Yes, that's precisely the advantage. Retirees with substantial savings but minimal monthly income often find asset depletion programs ideal. Your portfolio becomes your qualifying income source.
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.