Loading
Asset Depletion Loans in Windsor
Windsor's wine country real estate attracts retirees and executives with substantial portfolios but limited W-2 income. Asset depletion loans convert your investment accounts into qualifying income without liquidating them.
Most Windsor buyers using this program own multiple properties or recently retired from tech or wine industry careers. Lenders calculate monthly income by dividing liquid assets by 360 months, making $1.8M in accounts equal to $5,000 monthly income.
This works particularly well for Windsor's market where buyers have equity from prior home sales or stock compensation. You preserve investment growth while securing mortgage approval based on what you own, not what you earn.
Lenders require 620+ credit and liquid assets in stocks, bonds, mutual funds, or retirement accounts. Physical real estate and business equity don't count as liquid for this calculation.
You'll need 10-20% down depending on loan amount and credit profile. The asset calculation divides your total eligible assets by 360 to determine monthly qualifying income for debt ratios.
Most Windsor borrowers need $500K+ in liquid accounts to make the math work. A $750K purchase typically requires $1.5M in assets to cover down payment, reserves, and income qualification.
About 40 of our 200+ wholesale lenders offer asset depletion programs with different asset calculation methods. Some divide by 360 months, others by 240 or 84 depending on borrower age and asset type.
Rates run 0.75-1.5% above conventional loans because this is a non-QM product. Expect 7.5-8.5% in current conditions with pricing varying based on loan amount and down payment size.
Not all lenders accept retirement accounts the same way. Some discount 401(k) balances by 30% for early withdrawal penalties while others count full value for borrowers over 59.5 years old.
We shop this loan across multiple lenders because calculation methods create huge approval differences. One lender's formula might disqualify you while another approves the same scenario easily.
Most Windsor buyers don't realize they qualify until we run the numbers. Someone with $2M in assets and Social Security can often afford more house than traditional employment income would support.
The biggest mistake is liquidating investments for a larger down payment. Keep those assets working for qualification instead of converting them to cash that no longer generates qualifying income.
Bank statement loans work better if you have business income flowing through accounts. Asset depletion makes sense when your wealth sits in investment portfolios generating minimal monthly deposits.
DSCR loans beat asset depletion for investment properties since they don't require personal income at all. But for Windsor primary residences, asset depletion typically offers lower rates than DSCR.
Foreign national loans serve different purposes but sometimes overlap with asset depletion for international buyers with US investment accounts. We compare both options when applicable.
Windsor's wine industry creates many self-employed and retired executives who built wealth through vineyard sales or industry exits. Asset depletion fits this demographic perfectly.
Properties in Sonoma County often require jumbo loan amounts where asset depletion really shines. The same portfolio that barely qualifies for a $500K loan easily supports $1.5M purchases.
Many Windsor buyers are relocating from Bay Area with proceeds from home sales sitting in investment accounts. This program lets them buy before establishing California employment history.
Most scenarios require $500K minimum, but $1M+ works better for typical Windsor home prices. A $750K purchase needs roughly $1.5M in liquid assets after down payment.
Yes, but lenders treat it differently based on your age. Under 59.5, expect a 30% penalty discount; over that age, full value typically counts.
No, that's the point. Lenders calculate income from your assets while they remain invested and growing in your accounts.
Current rates run 7.5-8.5% depending on credit and down payment. That's 0.75-1.5% above conventional loan pricing with similar profiles.
Yes, but it goes through standard income calculations. The asset depletion formula only applies to your liquid investment accounts, not real estate equity.
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.