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Asset Depletion Loans in Sebastopol
Sebastopol's mix of vineyard estates, tech retirees, and cannabis entrepreneurs creates strong demand for asset-based financing. Traditional income docs don't capture how many buyers here actually earn.
Asset depletion works by converting liquid holdings into theoretical monthly income. A $2M portfolio becomes roughly $11,500/month using typical 60-month depletion schedules.
This loan type fits retired Microsoft engineers with stock portfolios and grape growers who reinvest profits instead of taking salary. Sonoma County sees consistent asset-based deal flow.
You need $500K minimum in verifiable liquid assets after down payment and reserves. Think savings accounts, stocks, bonds, retirement funds—not real estate equity.
Credit minimums start at 680 for most programs. LTV caps at 80% on primary homes, lower on second properties and investment deals.
Lenders calculate monthly income by dividing your assets by 60 months. That number must cover your new mortgage payment plus existing debts at acceptable DTI ratios.
Reserves matter more here than traditional loans. Expect to show 12-24 months of payments remaining after closing costs and down payment.
Asset depletion sits squarely in non-QM territory. You won't find this at Chase or Wells Fargo. Portfolio lenders and specialty finance shops dominate this space.
About 15-20 wholesale lenders in our network actively price these deals. Rate spreads range 150-300 basis points above conforming, depending on credit and leverage.
Some lenders count 70% of retirement account values, others go to 100% on liquid brokerage holdings. The calculation method dramatically affects how much you qualify for.
Documentation is lighter than stated income but heavier than bank statement loans. Expect full asset verification with 60-90 day statements from every account.
Most borrowers overestimate how much house their assets support. A $1M portfolio only generates about $5,800/month under 60-month depletion—not enough for a $2M purchase.
The calculation works backwards from your target payment. If you want a $4,000/month mortgage, you need roughly $700K in depletable assets after your down payment sits in escrow.
Retirement accounts create the trickiest scenarios. Some lenders penalize them 30-50% because early withdrawal penalties eat into actual liquidity. Others count them at full value but cap LTV lower.
I've closed deals where mixing asset depletion with rental income from a Healdsburg property pushed someone over the qualification line. Creative structuring matters in non-QM.
Bank statement loans make more sense if you run an active business with revenue flowing through accounts. Asset depletion fits retired or passive income situations better.
DSCR loans work for pure investment properties where rental income covers the mortgage. Asset depletion handles primary homes and second properties where cash flow isn't the story.
Foreign national programs require larger down payments but care less about US credit history. If you have assets but thin US credit, that might be the better path.
Most borrowers explore 2-3 non-QM options simultaneously. I underwrite your scenario across multiple programs to find the cheapest money.
Sebastopol's median home prices don't trigger jumbo territory often, but vineyard properties and rural estates absolutely do. Asset depletion scales better to high-balance loans than many alternatives.
Sonoma County appraisals can stretch timelines. Rural comparables are sparse, and unique properties like converted barns or agricultural parcels slow the process. Budget extra time.
Many Sebastopol buyers hold company stock from Bay Area tech careers. Concentrated single-stock positions get discounted heavily—sometimes 50% or more of market value for qualification purposes.
The local cannabis industry creates documentation nightmares for traditional lending. Asset-based programs sidestep the income verification entirely, making them popular with legal cultivators who've accumulated cash.
Savings, checking, stocks, bonds, mutual funds, and money market accounts all count. Most lenders include retirement accounts at 70-100% value depending on age and penalties.
Yes, but LTV drops to 70-75% typically, and reserve requirements increase. DSCR loans often make more sense if the property generates rental income.
Total liquid assets divided by 60 months is standard. A $1.2M portfolio becomes $20,000/month qualifying income under this method.
680 minimum at most lenders. Higher scores unlock better rates and higher leverage, with 720+ getting the best pricing tiers.
Expect rates 1.5-3% higher than conforming loans. Fees run similar to conventional, though some lenders charge points upfront to buy down the rate.
Absolutely. We routinely blend asset depletion with rental income, Social Security, or part-time W-2 earnings to maximize qualification amounts.
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.