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Santa Barbara's wealthy retirees and high-net-worth individuals often struggle with traditional mortgages. Asset depletion loans let you qualify based on liquid assets—stocks, bonds, retirement accounts—rather than W-2s or tax returns.
This loan type fits Santa Barbara's market perfectly. Many buyers here have substantial portfolios but minimal reported income. Lenders calculate qualifying income by dividing your assets by the loan term.
Asset Depletion Loans in Santa Barbara
You need significant liquid assets. Most lenders require at least $500,000 in qualifying accounts after your down payment. Credit scores typically start at 660, though some programs accept 620.
Lenders divide your total assets by the loan term to create monthly income. A 30-year loan divides by 360 months. Down payments run 10-25% depending on property type and asset level.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Santa Barbara.
Santa Barbara's wealthy retirees and high-net-worth individuals often struggle with traditional mortgages. Asset depletion loans let you qualify based on liquid assets—stocks, bonds, retirement accounts—rather than W-2s or tax returns.
This loan type fits Santa Barbara's market perfectly. Many buyers here have substantial portfolios but minimal reported income. Lenders calculate qualifying income by dividing your assets by the loan term.
You need significant liquid assets. Most lenders require at least $500,000 in qualifying accounts after your down payment. Credit scores typically start at 660, though some programs accept 620.
Asset depletion loans are Non-QM products. You won't find them at Chase or Wells Fargo. Our network of 200+ wholesale lenders includes several that specialize in asset-based qualification.
Each lender treats assets differently. Some accept 70% of retirement account values, others use 100% of brokerage accounts. Rate pricing varies based on your asset-to-loan ratio and credit profile.
Santa Barbara buyers use this loan when they've sold a business, retired early, or live off investments. I've closed deals for clients with $2 million in assets but zero W-2 income.
The biggest mistake is not planning for reserves. After down payment and closing costs, you still need 6-12 months reserves. Calculate carefully before committing to a purchase price.
Bank statement loans work if you have business income but messy tax returns. Asset depletion makes sense when you have wealth but no income documentation at all.
DSCR loans suit investors buying rental properties. Asset depletion works for primary residences and second homes when you're living off portfolio withdrawals.
Santa Barbara's coastal properties often exceed conforming limits. Asset depletion works for jumbo loan amounts, which matters when homes start at seven figures.
Condos near the beach require condo approval through the lender. This adds 2-3 weeks to closing timelines. Single-family homes in Montecito and Hope Ranch close faster.
Most lenders accept stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs. Some accept 70-100% of account values depending on liquidity and account type.
Most asset depletion programs work for primary residences and second homes only. Investment properties typically require DSCR loans instead.
They divide your total liquid assets by the loan term in months. A $1.8 million portfolio on a 30-year loan creates $5,000 monthly income.
No. Lenders verify your assets but don't require you to sell them. Accounts stay invested throughout the loan.
Most lenders require 660 minimum. Scores above 700 get better rates and more lender options.