Loading
Asset Depletion Loans in Sonoma
Sonoma attracts retirees and investors with substantial liquid assets but minimal W-2 income. Asset depletion loans convert those holdings into qualifying income without liquidating your portfolio.
Wine country buyers often have wealth tied up in portfolios, not paychecks. This program divides your liquid assets by 360 months to calculate monthly income for qualification purposes.
Most Sonoma borrowers using asset depletion hold $500K to $5M in stocks, bonds, or retirement accounts. The loan works for primary homes, second homes, and investment properties throughout the valley.
You need 620+ credit and sufficient liquid assets to meet debt-to-income requirements. Lenders divide your portfolio balance by 360 to determine monthly qualifying income.
Down payment starts at 20% for primary homes, 25% for second homes, 30% for investment properties. You'll need 6-12 months reserves after closing depending on the property type.
Acceptable assets include stocks, bonds, mutual funds, and retirement accounts. Some lenders accept vested stock options and CDs with less than 12 months to maturity.
SRK Capital accesses 40+ non-QM lenders offering asset depletion programs. Each lender treats retirement accounts differently—some apply 70% discount, others use full balance.
Rate premiums run 0.75% to 2.5% above conventional depending on credit, leverage, and asset type. Lenders with the lowest rates often restrict which assets qualify.
Loan amounts reach $3M with most lenders, higher with select portfolio lenders. Processing takes 25-35 days since underwriters manually verify asset statements and ownership.
We see two Sonoma profiles: early retirees with $2M portfolios buying $800K homes, and ultra-high-net-worth buyers wanting to avoid liquidating positions. Both benefit from asset depletion.
The math matters. A $1M portfolio generates $2,778 monthly income under standard calculation. Some lenders offer 240-month divisors for larger portfolios, creating higher qualifying income.
Most buyers don't realize annuities and whole life policies qualify with certain lenders. We've closed Sonoma deals using variable annuities traditional brokers said wouldn't work.
Bank statement loans make sense if you run business income through accounts but lack liquid assets. Asset depletion works when you have the portfolio but minimal cashflow documentation.
DSCR loans beat asset depletion for pure investment plays where rental income covers the mortgage. Foreign national loans apply if you're not a US citizen or permanent resident.
1099 contractor income loans require less documentation if you have two years tax returns. Asset depletion shines when you're recently retired or took a sabbatical year.
Sonoma's median home prices create sweet spot for asset depletion—expensive enough that buyers have wealth, affordable enough that portfolios generate sufficient qualifying income. Wine country second homes dominate our pipeline.
Valley properties often require earthquake and wildfire insurance, increasing monthly payments and affecting debt ratios. Factor $300-800 monthly for comprehensive coverage when calculating how much portfolio you need.
Many Sonoma buyers own vineyards or hospitality businesses with complex tax returns. Asset depletion sidesteps income documentation entirely, eliminating six weeks of tax return analysis and business write-off explanations.
Divide your target monthly payment by 0.0028 to estimate required assets. A $4,000 payment needs roughly $1.4M in qualifying liquid assets plus down payment and reserves.
Most lenders discount IRAs and 401(k)s by 30% to account for taxes and early withdrawal penalties. Some portfolio lenders use full balance for borrowers over 59½.
Yes. We stack social security, pensions, and rental income with asset depletion regularly. This lowers the portfolio balance needed to qualify.
Both spouses' assets count if both are on the loan. Community property rules in California help—separate asset accounts can qualify for joint applications.
We close in 25-30 days typically. Provide current brokerage statements and bank statements covering the past two months to start the file.
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.