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Asset Depletion Loans in Dinuba
Dinuba's agricultural economy creates unique income patterns that traditional lenders miss. Farm owners and business operators often hold substantial assets while showing irregular W-2 income.
Asset depletion loans convert your liquid holdings into qualifying income. A $500,000 portfolio becomes roughly $8,300 monthly income under standard 60-month depletion calculations.
This program works particularly well for Dinuba's self-employed population and retirees. You're not asking lenders to trust future earnings—you're showing them money already in the bank.
You need substantial liquid assets to make this work. Most lenders require $200,000 minimum in qualifying accounts after down payment and reserves.
Credit scores start at 640, though 680+ gets better pricing. The asset amount matters more than your credit history—this is a portfolio-based decision.
Qualifying assets include checking, savings, stocks, bonds, and retirement accounts. Real estate equity doesn't count unless you're liquidating it. Your assets must be seasoned for two statement cycles.
Asset depletion sits in the non-QM space, so you won't find it at Wells Fargo or Chase. Specialized lenders price these loans based on your LTV and asset depth.
Rates run 1-2% above conventional loans. A broker accessing 15+ non-QM lenders can often find half-point rate differences between identical scenarios.
Most lenders cap at $3 million loan amounts in Dinuba. If you're looking at rural property outside city limits, confirm the lender accepts Tulare County agricultural addresses upfront.
I run these constantly for Dinuba clients selling businesses or retiring from farming. The biggest mistake is not counting retirement accounts—they qualify at 70% of value after penalties.
Timing matters with asset depletion. If you just sold a business or received an inheritance, wait 60 days for proper seasoning. Lenders will kick back applications with sudden large deposits.
Blend this with gifted funds strategically. If parents gift you $100K for down payment, that increases your qualifying power since it reduces the asset requirement. Just document the gift properly.
Bank statement loans beat asset depletion if you show decent business income. With 12-24 months of statements, you might qualify for more while paying less.
DSCR loans make sense for investment property purchases. You're not living there, so why deplete personal assets when rental income can qualify the deal?
Asset depletion shines when your tax returns show minimal income but your investment accounts tell the real story. This is your tool when nothing else works.
Dinuba properties under $450K work best with this program. At higher prices, the asset requirement becomes prohibitive—you'd need $1M+ liquid to buy a $600K home.
Tulare County appraisals can lag 2-3 weeks during harvest season. Factor that into your closing timeline, especially on properties with ag components.
Property insurance runs higher here than coastal California. Budget $1,800-2,500 annually, and confirm your asset calculation covers the full PITI payment including these elevated insurance costs.
Roughly $400K liquid after your down payment and reserves. That assumes 20% down and converts remaining assets to qualifying income over 60 months.
Yes, at 70% of the vested balance. Lenders calculate this as available funds minus estimated penalties and taxes.
After 60 days of seasoning in your account. Underwriters need two consecutive statements showing the funds sitting untouched.
640 minimum for most lenders. Below that, even $1M in assets won't overcome credit barriers in the non-QM space.
Yes, typically 1-2% higher. You're paying for underwriting flexibility and non-traditional qualification methods.
If it's your primary residence with under 10 acres. Pure agricultural operations require specialized ag lending programs instead.
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.