Loading
Asset Depletion Loans in Fairfield
Fairfield sits between the Bay Area and Sacramento, drawing retirees, investors, and self-funded entrepreneurs who need financing without W-2s. Asset depletion loans work well here because many buyers have substantial savings but inconsistent income documentation.
Travis Air Force Base brings military retirees with pension portfolios. Tech workers from Vacaville and Bay Area transplants often hold stock options and investment accounts that traditional lenders ignore.
Solano County homes in the $500K-$800K range match perfectly with asset depletion qualifying limits. You'll find lenders willing to underwrite based on liquid assets when conventional programs say no.
You need at least $500K in liquid assets to make this loan type work in Fairfield's price range. Lenders divide your total assets by 60-360 months to calculate qualifying income.
Most programs require 20-30% down and credit scores above 660. Retirement accounts count after applying a 30% penalty for early withdrawal assumptions.
Stocks, bonds, mutual funds, and savings all qualify. Real estate equity doesn't count because it's not liquid. Your asset total determines how much house you can buy.
Asset depletion sits in the non-QM space, which means fewer lenders and higher rates than conventional loans. SRK CAPITAL accesses 200+ wholesale lenders to find programs that actually close.
Not every non-QM lender offers asset depletion. Some cap loan amounts at $2M, others require specific asset types or longer depletion schedules that kill your qualifying power.
Rate premiums run 1.5-3% above conventional depending on down payment and credit profile. Expect closing costs similar to jumbo loans with added underwriting fees for portfolio verification.
Asset depletion makes sense for three Fairfield buyer types: military retirees with TSP accounts, Bay Area equity refugees who sold businesses, and foreign nationals parking U.S. assets. If you're still working a W-2, this loan costs too much.
The biggest mistake is using a short depletion period to maximize qualifying income. A 60-month schedule assumes you'll burn through assets fast, which makes underwriters nervous and drives up rates.
I send borrowers to bank statement loans first if they have any business income to document. Asset depletion works when literally nothing else does—you're retired, between ventures, or living off investments.
Bank statement loans beat asset depletion if you're self-employed with 12 months of deposits. DSCR loans work better for rental property purchases because you don't deplete personal assets.
Foreign national loans overlap with asset depletion for international buyers. The difference: foreign national programs allow non-U.S. assets and income, while asset depletion requires domestic accounts.
Conventional loans always cost less if you qualify. Asset depletion is for when traditional income documentation doesn't exist—not when it's inconvenient to provide.
Fairfield's proximity to Travis Air Force Base creates steady demand from military retirees who fit the asset depletion profile perfectly. Many hold federal TSP accounts with balances exceeding $1M.
Solano County appraisals come in reliably compared to volatile Bay Area markets. Lenders feel comfortable with Fairfield valuations, which helps in non-QM underwriting where property risk matters more.
Competition from Sacramento and Vallejo buyers keeps inventory tight. Asset depletion gives you approval speed—most programs close in 30-45 days once assets are verified, faster than some conventional loans.
Stocks, bonds, mutual funds, savings, and money market accounts qualify. Retirement accounts count with 30% penalty applied. Real estate equity and business assets don't qualify because they're illiquid.
Expect 20-30% down minimum. Higher down payments improve rates and reduce lender risk. Some programs allow 20% with strong credit and significant asset reserves.
Yes, but lenders subtract 30% for early withdrawal penalties when calculating qualifying income. A $1M 401(k) becomes $700K in the depletion calculation, then divided by your chosen term.
Most programs start at 660 minimum. Better rates kick in above 700. Poor credit with strong assets still works, but expect rate premiums of 2-4% above conventional.
Rates vary by borrower profile and market conditions. Typically 1.5-3% higher than conventional. The premium pays for flexibility when traditional income documentation doesn't exist.
It can, but DSCR loans usually make more sense for rentals. Asset depletion uses your personal assets; DSCR uses the property's rental income to qualify instead.
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.