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Asset Depletion Loans in Dunsmuir
Dunsmuir attracts retirees, remote workers, and property investors drawn to affordability and mountain living. Traditional income verification doesn't work for many who want to buy here.
Asset depletion loans let you qualify using retirement accounts, investment portfolios, or cash reserves. Lenders calculate a monthly income figure by dividing your assets over the loan term.
This program works particularly well in Siskiyou County where buyers often have substantial savings but irregular W-2 income. Mountain communities see strong demand from cash-heavy, non-traditional earners.
You need significant liquid assets — typically $500K minimum across checking, savings, stocks, bonds, or retirement accounts. Lenders divide your total assets by 360 months to calculate qualifying income.
Credit scores start at 620, but 680+ gets better pricing. Expect 20-25% down for primary homes, 30% for investment properties.
You must document asset sources with recent statements showing balances. Penalties for early retirement withdrawals get factored into calculations, reducing your effective qualifying amount.
Asset depletion sits in the non-QM space, so you won't find it at Wells Fargo or Chase. Portfolio lenders and specialty finance companies dominate this market.
We work with 15+ lenders offering asset depletion programs, each with different asset calculation methods. Some exclude retirement accounts, others allow them but apply penalty haircuts.
Rate premiums run 0.75-1.5% above conventional loans. Closing costs include higher processing fees since underwriting manually reviews asset documentation across multiple institutions.
Most Dunsmuir asset depletion buyers fall into three camps: early retirees living off investments, tech workers with equity comp, or trust fund recipients. All have assets but lack traditional paystubs.
The calculation makes or breaks your deal. One lender might apply a 10% penalty to IRA withdrawals, another 20%. That difference can mean $100K in qualifying power.
I always run scenarios across multiple lenders before locking. A borrower with $1.2M in assets might qualify for $400K at one shop, $525K at another, purely based on calculation methodology.
Bank statement loans work better if you're self-employed with healthy business deposits. Asset depletion fits when you're liquid but have minimal monthly cash flow.
Foreign national loans require similar down payments but don't need U.S. credit history. DSCR loans work for pure investors who want rental income to carry the mortgage.
Asset depletion gives you the flexibility to avoid depleting those assets. You're not required to liquidate — you just prove you could if needed.
Dunsmuir's affordability means asset depletion buyers often over-qualify relative to purchase price. A $1M portfolio easily supports a $300K mountain home purchase.
Siskiyou County appraisals can take 3-4 weeks due to limited comparable sales and appraiser availability. Build extra time into your timeline for rural property evaluation.
Many properties here are older homes or cabins needing updates. Some asset depletion lenders have stricter property condition requirements than conventional loans, especially around heating systems and well water.
Yes. Lenders calculate income by dividing your balance over the loan term. You don't withdraw anything — they verify the balance exists.
Checking, savings, stocks, bonds, mutual funds, and retirement accounts all count. Most lenders exclude real estate equity and illiquid assets like private business ownership.
Expect 0.75-1.5% higher rates than conventional loans. Rates vary by borrower profile and market conditions based on credit score and down payment.
No. You only need to document balances with recent statements. The assets remain invested — liquidation isn't required.
Yes, but expect 30% down minimum. Many lenders cap loan amounts lower for investment properties than primary residences.
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.