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Asset Depletion Loans in Benicia
Benicia attracts retirees and high-net-worth buyers who own substantial assets but lack W-2 income. Asset depletion loans let you qualify based on liquid holdings like stocks, bonds, and savings accounts.
This program works well for Benicia's waterfront properties and established neighborhoods where buyers often transition from traditional careers. Lenders convert your assets into monthly income for qualification purposes.
You need significant liquid assets—typically $500,000 minimum after down payment and reserves. Lenders divide your total assets by 360 months to calculate qualifying income.
Credit scores start at 680. Down payments run 20-30% depending on asset levels. Retirement accounts, brokerage accounts, and savings all count toward qualification.
Asset depletion sits in the non-QM category, so you won't find it at Chase or Wells Fargo. We work with specialized lenders who underwrite these loans daily.
Each lender calculates asset depletion differently. Some use 30-year amortization, others use 20 years. That math changes your qualifying income by thousands per month.
Most Benicia buyers who need asset depletion also qualify for bank statement loans or DSCR if buying rentals. Run all three scenarios before committing.
Retirement account withdrawals count differently than brokerage accounts. Some lenders penalize 401(k) assets by 30% to account for taxes and penalties. Match your asset mix to the right lender.
Bank statement loans require 12-24 months of deposits but work with lower down payments. Asset depletion needs bigger reserves but zero income documentation.
DSCR loans skip personal income entirely if you're buying rentals. Foreign national programs serve non-citizens with similar asset requirements but different structure.
Benicia's waterfront homes and hillside properties attract buyers downsizing from Bay Area tech careers. They have stock portfolios but no current paychecks.
Solano County prices let substantial asset holders buy without depleting portfolios. A $1M property needs $250K down plus reserves—manageable for buyers with $2M+ liquid.
Stocks, bonds, mutual funds, savings accounts, and money market accounts all qualify. Lenders typically exclude retirement funds or discount them by 30% for tax implications.
They divide your total liquid assets by 240-360 months depending on the lender. A borrower with $1.2M in assets might show $4,000-$5,000 monthly qualifying income.
Most asset depletion programs work for primary and second homes only. Investment properties typically require DSCR loans that qualify based on rental income instead.
Rates run 1-2% higher than conventional mortgages. Non-QM lenders price for added flexibility and manual underwriting involved in these programs.
No. Lenders verify assets exist but don't require you to sell anything. Your portfolio stays invested while lenders use theoretical income for qualification purposes.
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.