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Asset Depletion Loans in Farmersville
Farmersville borrowers with substantial savings but irregular income patterns face constant W-2 roadblocks. Asset depletion loans convert your liquid assets into qualifying income—no tax returns required.
This works well for retirees with portfolio income, business owners reinvesting profits, and families who've sold property or businesses. Tulare County's lower price points mean your assets stretch further here than in coastal markets.
Lenders divide your liquid assets by 360 months to calculate monthly income. A $720,000 portfolio generates $2,000 monthly qualifying income under this formula.
Most lenders require $500,000 minimum in liquid assets—stocks, bonds, retirement accounts, or cash equivalents. Credit scores typically need to hit 680, though some programs accept 660.
Down payments start at 20% for primary residences. Investment properties require 25-30% down depending on the lender's risk appetite and your total asset position.
You'll document assets with recent statements from all accounts. Lenders verify these haven't been borrowed against or recently transferred from non-liquid sources.
Only specialized non-QM lenders offer asset depletion programs. Your neighborhood bank won't touch this—they're stuck in the W-2 world where paystubs are gospel.
SRK CAPITAL accesses 40+ asset depletion lenders with different calculation methods and asset requirements. Some count retirement accounts at 70% of value while others use 100%.
Rate premiums run 1-2% above conventional mortgages due to portfolio lending risk. Expect 7-9% rates in current markets, with costs improving as your down payment increases.
Retirees moving to Farmersville from expensive markets are perfect candidates—they've got sale proceeds but no paycheck. I've closed deals where $1.2M in assets qualified buyers for $400K homes.
The 360-month divisor kills purchasing power for younger borrowers. If you're 45 with $600K in assets, that's only $1,667 monthly qualifying income—barely enough for a modest Farmersville property.
Combine this with rental income from other properties to boost qualifying numbers. A Bakersfield rental generating $1,800 monthly plus $2,000 from asset depletion gives you real buying power.
Bank statement loans work better if you run a business with cash flow. Asset depletion makes sense when your money sits in investments, not checking accounts.
DSCR loans beat asset depletion for pure investment plays—they qualify on the property's rental income, leaving your assets untouched. Use those for different purchases.
Foreign national loans serve international buyers without US credit. Asset depletion targets domestic borrowers with unconventional income documentation needs.
Tulare County's agricultural economy creates lots of business owners with lumpy income. They show $40K on tax returns but have $800K in land equity and investments.
Farmersville properties rarely exceed $500K, meaning your asset reserves go further. Coastal markets might require $2M in assets for similar debt-to-income ratios.
Expect appraisal challenges in rural pockets where comparable sales are scarce. Lenders get conservative when they can't verify property values with recent transactions.
Stocks, bonds, mutual funds, money market accounts, CDs, and retirement accounts like 401(k)s or IRAs. Real estate equity and whole life insurance don't qualify.
Yes, if your spouse is a co-borrower on the loan. Both parties must be on title and the mortgage note.
They require 6-12 months reserves after closing. Your total assets must exceed what's needed for the income calculation plus reserves.
Lenders only use assets for income calculation—you don't actually withdraw funds. No tax impact from the qualification process itself.
Portfolio lenders hold these loans instead of selling to Fannie Mae. They charge more to offset the risk of non-traditional income documentation.
Yes, once you establish qualifying income through W-2s or tax returns. Most borrowers refinance to conventional within 2-3 years for better rates.
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.