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Asset Depletion Loans in Etna
Etna's small-town housing market attracts retirees and second-home buyers who don't fit traditional employment boxes. Many have substantial retirement accounts but minimal W-2 income.
Asset depletion loans treat your liquid assets as qualifying income. A $500,000 portfolio becomes roughly $2,777 monthly income over a 15-year amortization schedule.
This works well for Siskiyou County buyers relocating from higher-cost markets. You sold a Bay Area property and want to buy in Etna without showing employment income.
You need verified liquid assets worth at least 2-3 times the loan amount. Lenders divide that total by 360 months to calculate qualifying income.
Credit requirements start at 680, sometimes lower with more substantial assets. Expect 20-25% down for rural properties like those in Etna.
Qualified accounts include retirement funds, investment portfolios, and savings. Home equity doesn't count, but rental property reserves might depending on the lender.
Fewer than 30 wholesale lenders offer true asset depletion programs. Most cap loan amounts at $3 million, which covers nearly all Etna properties.
Some lenders won't touch rural Siskiyou County properties. We work with three specific lenders who approve mountain town purchases without location overlays.
Rates run 1.5-2.5% above conventional loans. You're paying for underwriting flexibility, not risk—most asset depletion borrowers have excellent credit and substantial net worth.
Asset depletion works best when you have $750,000+ in verifiable accounts. Below that threshold, bank statement loans often provide better qualifying income ratios.
Etna buyers frequently combine this loan with large down payments. When you're putting 40% down on a $400,000 property, lenders care less about employment history.
Timing matters with volatile portfolios. Lenders average asset values over 2-3 months, so a recent market dip can reduce qualifying income significantly.
Bank statement loans might work better if you have self-employment income. They calculate qualifying income from deposits, not asset totals.
DSCR loans make sense for rental properties. Asset depletion works only for primary or second homes in Etna, not investment properties.
Foreign national loans serve non-residents. Asset depletion requires U.S. citizenship or permanent residency, plus domestic account documentation.
Etna's limited comparable sales complicate appraisals. Lenders require desktop reviews that sometimes add 2-3 weeks to closing timelines.
Wells and septic systems on rural properties need inspection certification. Budget $800-1,200 for water quality testing and septic evaluations before closing.
Some Etna properties sit on larger acreage parcels. Lenders treat anything over 10 acres differently, often requiring agricultural lending specialists instead of standard asset depletion.
Yes. Lenders verify the balance for qualification but don't require actual withdrawals. Your retirement account stays intact while qualifying you for the mortgage.
$1 million divided by 360 months equals $2,778 monthly qualifying income. Some lenders use 240-month calculations, which increases your qualifying power.
Siskiyou County has lower property taxes than coastal California. Your housing payment stays manageable even with higher asset depletion interest rates.
Lenders average values over 60-90 days. Volatile portfolios get conservative valuations, sometimes discounted 10-20% from peak statements.
Yes. Part-time work, Social Security, or rental income can supplement asset depletion calculations. Most lenders allow hybrid qualification approaches.
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.