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Asset Depletion Loans in San Mateo
San Mateo attracts high-net-worth individuals, retirees, and tech professionals with substantial investment portfolios. Many have significant liquid assets but don't fit traditional income documentation requirements.
Asset depletion loans let borrowers qualify by dividing liquid assets by the loan term, creating a monthly qualifying income. This approach works well for those with stock portfolios, retirement accounts, or other investments who don't show traditional W-2 income.
Lenders typically require $500,000 to $1 million in verified liquid assets to use asset depletion. They divide your total qualifying assets by 360 months (30-year term) or 180 months (15-year term) to calculate monthly income.
Credit scores usually need to be 680 or higher, with some programs accepting 660. Down payments range from 20% to 30% depending on the property type and your overall financial profile.
Acceptable assets include checking and savings accounts, stocks, bonds, mutual funds, and retirement accounts like IRAs and 401(k)s. A percentage discount may apply to volatile assets.
Not all lenders offer asset depletion programs in San Mateo. This Non-QM product requires specialized underwriting knowledge and investor relationships that many traditional banks lack.
Working with a broker who has access to multiple Non-QM lenders gives you better rates and terms. Different lenders apply different asset depletion formulas and haircuts to various asset types.
Some lenders allow you to combine asset depletion with other income sources to strengthen your application. Others offer variations like asset dissipation that use shorter calculation periods.
The asset calculation method matters significantly. A lender using a 180-month divisor instead of 360 months doubles your qualifying income, potentially allowing a larger loan amount or easier approval.
Timing your loan application around portfolio values can make a difference. If markets are strong, your assets may qualify you for more. Lenders typically average recent statements rather than using a single snapshot.
Many borrowers don't realize they can use retirement accounts for this calculation even if they're not yet taking distributions. The key is showing the assets are liquid and verifiable.
Bank statement loans offer an alternative for business owners with strong revenue but complicated tax returns. Asset depletion works better when you have substantial savings but minimal ongoing income.
Foreign national loans serve non-residents who may have assets but lack U.S. credit history. DSCR loans focus on rental property cash flow rather than personal income or assets.
For investors with both rental income and assets, DSCR loans often provide better rates. For retirees with portfolios but no rental properties, asset depletion is the clearer path.
San Mateo County home prices make asset depletion particularly relevant. Even with substantial assets, borrowers need significant liquid holdings to qualify for area property values.
The concentration of tech professionals who receive stock-heavy compensation packages creates strong demand for asset-based qualification. Many have equity grants worth millions but show modest W-2 income.
Proximity to major employers and venture capital means many San Mateo residents hold private company equity. While private stock may not qualify for depletion calculations, public holdings and vested RSUs typically do.
Most lenders require $500,000 to $1 million in verified liquid assets. The exact amount depends on the home price, down payment, and how the lender calculates monthly qualifying income from your assets.
Yes, retirement accounts typically qualify for asset depletion calculations. You don't need to take distributions or withdraw funds—lenders simply use the account balance to calculate qualifying income.
Rates vary by borrower profile and market conditions. Asset depletion loans typically price 1-2% higher than conventional loans due to their Non-QM nature and specialized underwriting requirements.
No, lenders apply different percentages to various assets. Cash and money market accounts usually count at 100%, while stocks and mutual funds may receive 60-80% valuation due to volatility.
Expect 30-45 days for closing. The process takes longer than conventional loans because lenders must verify all asset accounts and apply their specific calculation methodology to determine qualifying income.
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.