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Asset Depletion Loans in Loyalton
Loyalton sits in Sierra County, where mountain properties attract retirees and remote workers with substantial assets. Traditional lenders reject these buyers because they lack W-2 income.
Asset depletion loans let you qualify using investment accounts, retirement funds, or liquid savings. Lenders divide your total assets by 360 months to calculate qualifying income.
This program works for Loyalton's small-town market where buyers often have significant net worth but unconventional income streams. Most purchases here are second homes or retirement properties.
You need at least $500K in liquid assets to make this loan work. Credit scores start at 680, though 720+ gets better rates.
Lenders require 20-30% down depending on property type and loan amount. Cash reserves of 6-12 months must remain after closing.
Acceptable assets include checking, savings, stocks, bonds, mutual funds, and vested retirement accounts. Real estate equity and vehicles don't count.
Only non-QM lenders offer asset depletion programs. Regional banks and credit unions won't touch this structure.
Rates run 1.5-3% higher than conventional loans. Expect 7-9% in current markets depending on your profile.
We work with 15+ lenders specializing in asset-based qualifying. Each has different asset calculation methods and property restrictions.
Most borrowers using asset depletion in Loyalton are buying vacation homes or relocating from metro areas. They sold businesses or retired early with substantial savings.
Some lenders count 100% of liquid assets, others only 70%. That difference determines whether you qualify for $400K or $550K.
Properties in remote areas like Loyalton trigger more scrutiny. Lenders want appraisals showing comparable sales and proof the property can resell if needed.
Bank statement loans work better if you run a business with consistent deposits. Asset depletion fits retirees and investors living off savings.
Foreign national loans require less documentation but demand 30-40% down. Asset depletion gives you better leverage at 20-25% down if you're a U.S. citizen.
DSCR loans make sense for rental properties. Asset depletion works for primary or second homes where rental income doesn't exist.
Loyalton's rural location means limited comparable sales for appraisers. Lenders often cap loan amounts at $1M here regardless of asset levels.
Properties with well water, septic systems, or wood heat need detailed inspections. Some lenders won't approve manufactured homes or parcels over 10 acres.
Sierra County's small population triggers overlay restrictions at certain lenders. We know which 8-10 lenders consistently approve loans here.
Yes, lenders count vested retirement accounts regardless of your age. The calculation divides total balance by 360 months for qualifying income.
No, assets stay invested. Lenders verify balances through statements and use them only for income calculation, not as loan collateral.
Roughly $350-450K depending on the lender's calculation method and your other debts. Each lender divides assets differently for qualifying income.
Both spouses can combine assets if both apply for the loan. Individual account ownership doesn't matter for married joint applicants.
Rates vary by borrower profile and market conditions. Stronger credit and larger down payments earn better pricing across all lenders.
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.