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Asset Depletion Loans in Mount Shasta
Mount Shasta attracts retirees and remote workers who hold significant assets but lack W-2 income. Asset depletion loans let you qualify using liquid assets like stocks, bonds, and savings accounts instead of employment history.
This program works well in Siskiyou County's slower-paced market where buyers often relocate with investment portfolios but minimal traditional income documentation. Lenders calculate qualifying income by dividing your assets by a fixed term.
Most lenders require minimum liquid assets between $500K and $1M to make this program viable. They'll divide that total by 60-360 months to create a monthly qualifying income figure that supports your debt-to-income ratio.
Credit scores typically need to be 680 or higher, with 20-30% down payments standard. Your asset accounts must be seasoned, usually showing balances for at least 60 days before application.
Asset depletion loans sit in the non-QM space, meaning fewer lenders offer them compared to conventional programs. Each lender calculates qualifying income differently—some divide by 60 months, others by 120 or even 360 months.
Rates run 1-3 points higher than conventional loans because these are portfolio products with more risk. Shopping across multiple non-QM lenders becomes critical since one might divide your assets more favorably and deliver better terms.
I see Mount Shasta buyers who sold businesses or inherited wealth struggle with traditional income documentation. Asset depletion solves that, but you need a broker who knows which lenders count which asset types and how aggressively they'll underwrite.
Some lenders exclude retirement accounts from calculations while others include them at discounted rates. The lender you choose changes your qualifying income by tens of thousands of dollars monthly, which directly impacts the loan amount you receive.
Bank statement loans work better if you have self-employment income flowing through accounts. Asset depletion makes sense when you're truly income-light but asset-rich—think early retirees or trust fund recipients.
DSCR loans only work for investment properties, not primary residences. Foreign national loans serve non-citizens but require larger down payments. Asset depletion bridges the gap for U.S. citizens buying primary or second homes in Mount Shasta without traditional income.
Mount Shasta's remote location and smaller property values mean some national non-QM lenders won't service the area. You need a broker with relationships at lenders who operate in rural Northern California markets.
The local market moves slowly, giving you time to organize asset documentation and shop lenders properly. Properties here typically fall below jumbo thresholds, but you'll still pay non-QM pricing regardless of loan size.
Most lenders accept checking, savings, stocks, bonds, and mutual funds. Retirement accounts may count at reduced percentages or be excluded entirely depending on the lender.
They divide your total liquid assets by a term length, usually 60-360 months. A lender using 120 months on $1M in assets would give you $8,333 monthly qualifying income.
Yes, though DSCR loans often work better for rentals since they qualify based on property cash flow. Asset depletion makes more sense for primary or second homes.
Expect 20-30% down minimum. Lower down payments increase rate and sometimes aren't available at all with this program.
No W-2s or tax returns required. Lenders verify assets through bank and brokerage statements, typically requiring 60 days of seasoning.
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.