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Asset Depletion Loans in Half Moon Bay
Half Moon Bay attracts retirees, entrepreneurs, and investors who hold substantial assets but lack traditional W-2 income. These buyers need mortgage options that recognize wealth beyond employment verification.
Asset depletion loans let you qualify using liquid assets like stocks, bonds, and retirement accounts. Lenders calculate a monthly income figure by dividing your assets over the loan term, typically 240-360 months.
This approach works well in San Mateo County's coastal market, where many buyers have built wealth through business sales, investments, or early retirement rather than standard employment.
You'll need significant liquid assets to qualify. Most lenders require $500,000 to $1 million minimum in accessible accounts, though exact thresholds vary by loan amount and property type.
Credit scores typically start at 680, with better rates available at 700+. Down payments usually begin at 20% for primary residences and 25-30% for investment properties.
Qualifying assets include checking, savings, stocks, bonds, mutual funds, and retirement accounts. Real estate, business equity, and illiquid holdings don't count toward qualification.
Asset depletion loans come exclusively from non-QM lenders who specialize in alternative documentation. Traditional banks and credit unions rarely offer these products, making broker relationships essential.
Rate premiums typically run 1.5-3% above conventional mortgages. Rates vary by borrower profile and market conditions, with stronger credit and larger down payments earning better pricing.
Expect loan amounts from $250,000 up to several million dollars. Many Half Moon Bay properties require jumbo financing, which asset depletion programs accommodate without issue.
Document your assets carefully with recent bank and brokerage statements covering 2-3 months. Consistent balances matter more than recent deposits, which lenders may exclude from calculations.
Consider which assets to include strategically. Retirement accounts count but may have age penalties factored in. Taxable accounts offer more flexibility in the lender's eyes.
Some lenders allow blended qualification combining asset depletion with partial income documentation. This hybrid approach can improve your rate and reduce the asset requirement if you have limited income streams.
Bank statement loans work better if you have business income but minimal liquid assets. Asset depletion makes sense when you're truly asset-rich and income-light, like after a business sale.
Foreign national loans serve non-U.S. citizens with assets abroad. Asset depletion works for U.S. residents and citizens who simply don't show traditional employment income.
DSCR loans focus on investment property cash flow rather than personal finances. If you're buying rental property with strong assets, asset depletion may offer higher leverage than DSCR programs.
Half Moon Bay's coastal location attracts buyers seeking primary residences and vacation homes. Asset depletion works for either occupancy type, though second home purchases require larger down payments and reserves.
San Mateo County property values make jumbo financing common. Asset depletion programs scale to accommodate local price points without the strict limits conventional jumbos impose.
The area's appeal to tech retirees and entrepreneurs creates natural demand for asset-based lending. Many buyers arrive with substantial stock portfolios but no current employment relationship.
Checking, savings, stocks, bonds, mutual funds, and retirement accounts count. Real estate equity, business interests, and illiquid holdings don't qualify. You need documented balances spanning 2-3 months.
They divide your total qualifying assets by the loan term in months, typically 240-360 months. A $1.2 million portfolio divided by 360 months creates $3,333 monthly qualifying income.
Yes, but lenders may apply age-based discounts if you're under 59½ due to potential early withdrawal penalties. IRAs and 401(k)s both qualify with proper documentation.
Most lenders require minimum 680 credit scores, with better rates starting at 700. Higher scores and larger down payments significantly improve your rate and terms.
Primary residences typically require 20% down, while second homes and investment properties need 25-30%. Larger down payments improve rates and may lower reserve requirements.
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.