Loading
Asset Depletion Loans in Millbrae
Millbrae attracts substantial investors and retirees with significant liquid assets but limited traditional income documentation. Asset depletion loans provide a path to homeownership by qualifying borrowers based on the value of stocks, bonds, retirement accounts, and other liquid holdings.
This Non-QM financing option serves business owners, early retirees, and investors who maintain wealth in portfolios rather than W-2 paychecks. The program converts asset balances into qualifying income using standardized calculation methods.
San Mateo County's high property values make asset depletion particularly relevant for wealthy borrowers who prefer to maintain investment positions rather than liquidating for large down payments.
Lenders typically divide total liquid asset balances by 360 months (30 years) to calculate qualifying monthly income. For example, $2 million in qualified assets generates approximately $5,556 monthly qualifying income under this formula.
Eligible assets include checking and savings accounts, stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs. Real estate equity and business interests generally don't qualify as liquid assets for these calculations.
Credit score requirements typically start at 680, though some programs accept scores as low as 660. Borrowers need substantial asset reserves beyond the purchase price to meet lender guidelines. Rates vary by borrower profile and market conditions.
Asset depletion programs come exclusively through Non-QM lenders who specialize in alternative documentation mortgages. These lenders maintain different underwriting standards than conventional loan providers.
Each lender applies unique asset calculation methodologies and discount rates for different asset types. Some apply 70% of stock values while counting cash at 100%, creating significant variance in qualifying amounts between lenders.
Processing timelines typically span 30-45 days as underwriters verify account statements and asset ownership. Borrowers should prepare comprehensive documentation showing six months of statements for all qualifying accounts.
Working with a broker provides access to multiple Non-QM lenders with competing asset depletion formulas. The calculation differences between lenders can mean hundreds of thousands in additional qualifying power.
Smart borrowers present the strongest asset mix possible. Concentrating qualifying assets in the most favorably counted categories maximizes the calculated income figure that determines loan eligibility.
Consider timing carefully if asset values fluctuate. Lenders typically use the most recent statement balance, so significant market volatility can impact qualification. Some borrowers wait for portfolio recovery before applying.
Bank statement loans offer an alternative for business owners with strong revenue but significant write-offs. These programs analyze 12-24 months of deposits rather than asset balances.
Foreign national loans serve non-U.S. citizens with substantial assets but no domestic credit history. DSCR loans work for investors focused on rental property cash flow rather than personal income or assets.
1099 loans accommodate independent contractors who prefer income documentation over asset depletion. Each Non-QM option serves distinct borrower profiles with different financial situations and documentation strengths.
Millbrae's proximity to San Francisco International Airport creates demand from aviation executives and international business professionals who maintain complex compensation structures beyond traditional employment.
The city's position along the Peninsula attracts Silicon Valley professionals who may hold substantial equity compensation in stocks and options. Asset depletion loans accommodate these technology workers between liquidity events.
San Mateo County property tax rates add ongoing costs that lenders factor into debt-to-income calculations. Higher taxes reduce qualifying power, making efficient asset documentation even more critical for approval.
It depends on the purchase price and your other debts. As a general example, $2 million in qualified assets generates roughly $5,556 monthly qualifying income under standard 360-month calculations.
Yes, most lenders include 401(k), IRA, and other retirement accounts in asset depletion calculations. They typically apply the same formulas used for non-retirement investment accounts.
No, asset depletion loans let you keep investments intact. Lenders calculate qualifying income from your balances without requiring you to sell positions or withdraw funds.
Asset depletion loans typically carry higher rates than conventional financing due to Non-QM risk factors. Rates vary by borrower profile and market conditions based on credit score, loan amount, and asset strength.
Expect to provide six months of statements for all qualifying accounts. Lenders verify account ownership, consistent balances, and asset type eligibility through this documentation review.
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.