Loading
Asset Depletion Loans in Yreka
Yreka's retirement-friendly market attracts buyers with significant assets but limited W-2 income. Asset depletion loans let you qualify using liquid holdings like retirement accounts and investment portfolios.
Siskiyou County sees early retirees, investors, and business owners who've built wealth outside traditional employment. This loan program calculates your borrowing power by dividing assets by the loan term.
Most lenders convert your liquid assets into a monthly income stream by dividing by 360 months. A $500,000 investment account generates roughly $1,389 in qualifying income under this formula.
You need substantial liquid assets to make this work. Most lenders require at least $500,000 in qualifying accounts after your down payment and reserves.
Credit minimums run 680-700 depending on the lender and loan amount. You'll need 10-20% down for primary homes, more for investment properties.
Qualifying assets include stocks, bonds, retirement accounts, and money market funds. Real estate equity and business assets typically don't count unless they're extremely liquid.
Asset depletion sits in the non-QM space, so your neighborhood bank won't offer it. You need specialty lenders who underwrite outside Fannie and Freddie guidelines.
We work with 15-20 lenders offering asset depletion programs. Each calculates qualifying income differently and accepts different asset types.
Some lenders let you combine asset depletion with other income sources. Others require full documentation of where the assets came from to satisfy anti-money-laundering rules.
This loan makes sense if you have the assets and hate the paperwork of traditional mortgages. Rates run 1-2% higher than conventional, but you avoid tax return scrutiny.
I see this work well for Yreka buyers who sold businesses or inherited wealth. You trade a higher rate for privacy and simplicity.
Don't confuse this with asset-based lending secured by your portfolio. Asset depletion is a traditional mortgage using assets for income calculation only.
Bank statement loans work better if you're self-employed with cash flow but haven't saved seven figures. They require 12-24 months of deposits instead of massive asset balances.
DSCR loans make sense if you're buying Yreka rental property and want to qualify on the property's income. Asset depletion works for primary homes where you live.
Foreign national loans help non-US citizens without domestic income. Asset depletion requires US credit history and works for citizens or permanent residents with domestic accounts.
Yreka's lower price points mean asset depletion goes further here than in California's coastal markets. Your $1 million portfolio qualifies you for more house in Siskiyou County.
Local appraisers understand rural Northern California values. Plan for longer appraisal timelines in smaller markets where comparable sales spread across wider areas.
Yreka's appeal to retirees and remote workers creates natural demand for asset-based qualification. Lenders comfortable with this market understand seasonal tourism patterns and local employment realities.
Divide your qualifying assets by 360 to get monthly income. With $1 million in accounts, you'd qualify based on roughly $2,778 monthly income plus any other documented income sources.
No. Lenders use assets to calculate qualifying income but don't require you to sell holdings. You keep your investments and pay the mortgage from whatever sources you choose.
Stocks, bonds, mutual funds, retirement accounts, and money market funds typically qualify. Real estate equity and illiquid business holdings usually don't count unless specifically approved by your lender.
Yes, but expect higher down payments and rates for investment properties. DSCR loans often work better for rentals since they qualify based on the property's income instead of your assets.
Expect rates 1-2 percentage points above conventional loans. You pay a premium for simplified documentation and the ability to qualify without traditional income verification.
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.