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Asset Depletion Loans in Dixon
Dixon attracts retirees and investors with substantial liquid assets but minimal tax returns. Asset depletion loans let you qualify using 401(k)s, IRAs, and brokerage accounts instead of employment income.
This Solano County city sees demand from Bay Area transplants cashing out equity. Many have seven-figure portfolios but can't show traditional paystubs—exactly who asset depletion serves.
Lenders divide your total liquid assets by 360 months to calculate monthly income. $1 million in stocks becomes $2,778 monthly qualifying income.
You need at least $500,000 in verifiable assets for most programs. Credit scores start at 660. Down payments run 20-30% depending on asset levels and property type.
Assets must be liquid—no real estate equity or business valuations. Stocks, bonds, mutual funds, CDs, and retirement accounts all count. Some lenders accept 70% of retirement account value to account for tax liability.
Asset depletion is a non-QM product, so forget about big banks. You're working with portfolio lenders who price individually based on your asset mix and down payment.
Rates run 1-2% above conventional mortgages. Some lenders offer better pricing if you keep accounts with them—a relationship discount worth exploring if you have $2 million-plus portfolios.
Documentation is straightforward but specific. Expect to provide two months of statements for every asset account. No tax returns, no pay stubs, no employment letters.
Most Dixon buyers don't know this program exists until a broker mentions it. Loan officers at Wells Fargo won't help you—they can't offer non-QM products.
The sweet spot is recent retirees with $750,000-$3 million in assets buying $400,000-$600,000 homes. They have the funds but zero W-2 income. Asset depletion solves that instantly.
I've closed these for clients selling Bay Area homes who want smaller footprints. They park $2 million in Schwab, finance $350,000 in Dixon, and keep most assets invested.
Bank statement loans work better if you're self-employed with business revenue. Asset depletion suits retirees and investors living off portfolios.
Foreign national loans require different documentation but can work alongside asset depletion if you're an overseas buyer. DSCR loans make sense if you're buying rental property—they ignore personal income entirely.
If you have 1099 income from consulting or gig work, 1099 loans might offer better rates. Asset depletion is the fallback when you literally have no earned income to document.
Dixon's housing stock runs affordable compared to Vacaville or Fairfield. That means your asset pile goes further—$800,000 in savings easily supports a $350,000 purchase with comfortable reserves.
Solano County doesn't have special programs that conflict with non-QM lending. You're not missing out on local grants or assistance by using asset depletion.
Appraisals come back clean in established neighborhoods. Lenders won't balk at Dixon properties the way they might at rural parcels—standard processing timelines apply.
Stocks, bonds, mutual funds, IRAs, 401(k)s, CDs, and money market accounts all qualify. Real estate equity and business valuations don't count.
No. You're not withdrawing the money—lenders just use the balance to calculate qualifying income. Your assets stay invested.
Some lenders allow it, but most won't stack income sources on non-QM loans. Better to use DSCR if it's a rental property.
30-45 days typical. Faster than bank statement loans since you're not providing years of tax returns—just recent account statements.
Rates vary by borrower profile and market conditions. Expect 1-2% above conventional rates—currently 8-9% range for well-qualified borrowers.
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.