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Patterson buyers with substantial liquid assets but irregular income now have a clear path to financing. Asset depletion loans calculate qualifying income by dividing your investment accounts, savings, and liquid holdings by the loan term.
This works well in Patterson where many borrowers have sold businesses, inherited wealth, or built investment portfolios. Lenders convert your assets into monthly income figures that satisfy conventional underwriting ratios.
Asset Depletion Loans in Patterson
Most lenders require $500,000 minimum in liquid assets after closing. Credit scores typically need to hit 680, though some programs accept 660 with compensating factors.
Assets must be seasoned at least 60 days and remain liquid—retirement accounts, brokerage holdings, and savings qualify. Real estate equity and business valuations don't count as liquid for these calculations.
Only non-QM lenders offer asset depletion programs. They divide your total liquid assets by 84, 120, or 180 months depending on loan term and age.
Newer programs let you include cryptocurrency holdings if verified through custodial platforms. As of February 2026, some lenders count crypto portfolios alongside traditional investments for qualification purposes.
I see asset depletion work best for Patterson buyers over 50 with seven-figure portfolios. They sold companies or maxed out retirement accounts but show minimal taxable income.
The math matters more than most borrowers realize. A $1.2M portfolio divided by 120 months creates $10,000 monthly income. That qualifies you for roughly $400K in purchase power before factoring existing assets for reserves.
Bank statement loans make more sense if you run an active business with deposits. DSCR loans work better when buying rental properties since they ignore personal income entirely.
Asset depletion fits a narrow profile: substantial savings, minimal reportable income, and primary residence purchases. Patterson retirees and early-exit entrepreneurs fit this perfectly.
Patterson's housing stock runs $400K-$650K for single-family homes. Asset depletion borrowers need $1M+ liquid to comfortably qualify in this range after down payment and reserves.
The agricultural economy here means many families accumulate land wealth but limited liquid assets. Asset depletion only works if you've already converted that equity into marketable securities or cash holdings.
Yes, but lenders only count 70% of IRA and 401(k) balances to account for early withdrawal penalties and taxes. Non-retirement brokerage accounts qualify at 100%.
Rates vary by borrower profile and market conditions. Expect 1-2 percentage points above conventional rates as of February 2026, typically landing in the 7-8% range for well-qualified borrowers.
No. Lenders verify asset values but don't require you to sell holdings. You need sufficient liquid assets remaining after your down payment and closing costs.
They require statements from recognized custodial platforms showing 60-day account history. Self-custodied wallets don't qualify since lenders can't verify balances independently.
Yes. Most lenders let you add Social Security, pension income, or investment dividends to your depleted asset calculation. This increases your qualifying power significantly.