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Rohnert Park homebuyers with substantial savings or investment portfolios can secure financing without traditional income documentation. Asset depletion loans calculate qualifying income by dividing your liquid assets over the loan term, typically 30 years.
This program serves retirees, early retirees, and investors throughout Sonoma County who have significant assets but limited W-2 income. Real estate investors managing multiple properties often use this option when their tax returns show minimal qualifying income.
Asset Depletion Loans in Rohnert Park
Most lenders require minimum liquid assets between $500,000 and $1,000,000 across bank accounts, stocks, bonds, and retirement accounts. Your assets get divided by the loan term (usually 360 months) to establish monthly qualifying income.
Credit scores typically need to be 680 or higher, with some programs accepting scores as low as 660. Down payment requirements range from 20% to 30% depending on property type and asset levels. Investment properties may require higher reserves.
Assets must be verifiable through recent statements from financial institutions. Acceptable assets include checking accounts, savings, mutual funds, stocks, and retirement accounts with varying discount rates applied based on liquidity.
Asset depletion programs come exclusively from non-QM lenders who specialize in alternative documentation loans. These lenders offer more flexibility than traditional banks but typically charge higher interest rates to offset risk.
Working with a broker provides access to multiple non-QM lenders simultaneously. Different lenders have varying asset calculation methods, some counting 100% of liquid accounts while others apply discount percentages to retirement funds.
Rates vary by borrower profile and market conditions. Expect pricing approximately 1-2% higher than conventional mortgages, with rate adjustments based on credit score, down payment size, and total asset position.
Many borrowers underestimate how much assets they need to qualify. A $700,000 loan requires approximately $2.1 million in liquid assets if that's your sole qualifying income source, though debt-to-income ratios around 43% are standard.
Combining asset depletion with other income sources creates stronger applications. If you have part-time income or Social Security, we can blend those sources with your assets to reduce the total asset requirement significantly.
Retirement account withdrawals for asset depletion don't require actual distributions. The calculation is theoretical only, meaning your retirement funds stay invested and continue growing while serving as qualifying income on paper.
Bank statement loans work better for self-employed borrowers with regular business deposits. Asset depletion suits those with substantial savings but irregular or minimal current income flow.
DSCR loans make sense for investment properties when rental income covers the mortgage. Foreign national loans serve non-citizens, while 1099 loans help independent contractors with inconsistent monthly deposits.
Asset depletion often provides the cleanest path when you have significant wealth but your tax returns show low income due to deductions, depreciation, or retirement. No need to document business operations or rental income streams.
Rohnert Park's position in Sonoma County attracts retirees and investors who've built wealth in Bay Area careers. The combination of lower property prices than San Francisco and quality of life makes asset depletion loans popular here.
Properties near Sonoma State University create rental opportunities where traditional income documentation proves challenging. Asset depletion financing helps investors acquire these properties without the complexity of DSCR calculations.
Sonoma County's wine country proximity means many residents have cyclical or seasonal income patterns. Asset depletion provides stability in qualification when wine industry income fluctuates throughout the year.
Checking accounts, savings, money market funds, stocks, bonds, and mutual funds typically count at 100%. Retirement accounts like 401(k)s and IRAs count with discount rates between 60-70% depending on the lender and your age.
Yes, asset depletion works for both primary residences and investment properties. Investment properties typically require higher down payments (25-30%) and larger asset reserves compared to owner-occupied homes.
Lenders require two to three months of recent statements from each financial institution. They verify account balances, look for large deposits requiring explanation, and confirm funds are seasoned and not recently borrowed.
Rates vary by borrower profile and market conditions. Asset depletion rates typically run 1-2% higher than conventional mortgages, with exact pricing based on your credit score, down payment, and total asset picture.
No withdrawals are required. Lenders calculate theoretical monthly income by dividing your assets by the loan term. Your investments stay intact and continue growing while serving as qualifying income on paper only.