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Asset Depletion Loans in Santa Rosa
Santa Rosa attracts retirees and high-net-worth buyers who hold significant assets but minimal W-2 income. Asset depletion loans turn your investment accounts into qualifying income.
Wine country draws entrepreneurs who've sold businesses and tech professionals with stock portfolios. Traditional income verification doesn't capture their actual financial strength.
Sonoma County's housing costs demand creative underwriting. Lenders divide your liquid assets by 360 months to calculate monthly qualifying income.
You need $500,000+ in verified liquid assets to make this program work. Retirement accounts, brokerage balances, and savings all count toward qualification.
Lenders require 620-680+ credit depending on loan amount. They'll want 20-30% down for purchase transactions in most cases.
Your assets must be held in accounts you can access. Real estate equity and 401(k)s you can't touch don't count toward depletion calculations.
Only 15-20 wholesale lenders offer true asset depletion programs. Most local banks don't understand the underwriting model.
Portfolio lenders provide the most flexibility on which assets count. Some allow 70% of retirement account balances, others stick to liquid-only accounts.
Expect 60-90 day close timelines. Asset verification takes longer than income documentation because lenders need multiple months of statements.
I've closed asset depletion deals for Santa Rosa buyers with $2M in stocks earning 6% rates. The math works when your portfolio generates real returns.
Biggest mistake: assuming all assets count equally. One lender might allow 100% of your brokerage account but only 70% of IRA balances.
Smart buyers combine this with cash-out refinancing after purchase. Once you own the home, you can tap equity while keeping investments intact.
Bank statement loans work better if you run business income through accounts. Asset depletion makes sense when your wealth sits in investments.
DSCR loans beat asset depletion for investment properties generating rent. Use your rental income instead of depleting personal assets.
Foreign national programs overlap with asset depletion for international buyers. Some lenders blend both approaches for stronger qualification.
Sonoma County sees asset depletion loans on $800K-$2M properties. Below $800K, conventional loans usually provide better rates.
Wine industry executives and vineyard owners use this program between harvest cycles. Their income fluctuates but asset bases stay strong.
Santa Rosa's proximity to Bay Area tech means buyers with RSU vesting schedules. Asset depletion bridges gaps when stock grants haven't vested yet.
They divide your total liquid assets by 360 months (30 years). A $1.8M portfolio creates $5,000 monthly qualifying income.
Yes, but lenders typically count only 60-70% of IRA and 401(k) balances. Accessible brokerage accounts count at 100%.
Rates run 1-2% above conventional loans. Strong credit and larger down payments get you closer to 1% premium. Rates vary by borrower profile and market conditions.
No. Lenders verify balances through statements but don't require you to sell. Your assets stay invested throughout the process.
Most lenders want 20-30% down. Higher down payments unlock better rates and increase approval odds with borderline credit.
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.