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Asset Depletion Loans in Lindsay
Lindsay homebuyers with substantial savings but irregular income face constant rejections from traditional lenders. Asset depletion loans let you qualify using liquid assets like investment accounts, stocks, or retirement funds instead of W-2s.
This program makes sense for retirees, business owners between ventures, or anyone with wealth that doesn't show up on tax returns. Your bank balance becomes your income proof.
Lenders calculate your qualifying income by dividing eligible assets by 360 months. If you have $900,000 in liquid assets, that converts to $2,500 monthly income for qualification purposes.
Most programs require $500,000 minimum in verifiable liquid assets. Credit scores typically start at 680, though some lenders go to 660 with compensating factors. You'll need 20-30% down depending on property type.
Asset depletion programs live exclusively in the non-QM space. No Fannie, Freddie, or FHA lender touches these deals. That means your rate will run 1-2% higher than conventional programs.
About 15-20 of our wholesale partners actively price these loans. Each lender treats retirement accounts differently—some count 70% of IRA value, others exclude them entirely. Program variance is massive here.
Most borrowers discover this program after getting denied for bank statement or stated income products. If you've got the assets, this path often closes faster because documentation is straightforward—just account statements.
Watch out for lenders who count your down payment toward qualifying assets. That math doesn't work. Your $600K in stocks needs to remain $600K after you put $150K down, or your income calculation collapses.
Bank statement loans work better if you have business income to document. DSCR loans beat asset depletion for pure investment properties since they ignore your finances entirely and focus on rental income.
Asset depletion shines when you're between income sources or your wealth sits in stocks rather than rental properties. It's the cleanest path for retirees who don't want to liquidate investments.
Lindsay's agricultural economy creates an unusual borrower pool for asset depletion. We see farmers who sold land, business owners who exited operations, and seasonal workers with accumulated savings but zero recent W-2 income.
Property values in Tulare County typically stay under conforming loan limits, making the rate premium less painful. On a $400K purchase, that extra 1.5% costs $6,000 annually—manageable when you're avoiding asset liquidation.
Checking, savings, stocks, bonds, and mutual funds always count. Retirement accounts like IRAs get 60-70% credit depending on lender. Equity in other properties doesn't qualify.
Yes, but DSCR loans usually make more sense for pure rentals. Asset depletion works best for primary residences or second homes where DSCR doesn't apply.
Typically 25-35 days. Documentation is simpler than income-based programs since you're just providing account statements. No tax return analysis speeds things up considerably.
No, that's the main advantage. Assets stay invested while their value creates qualifying income. You only liquidate what's needed for down payment and closing costs.
Underwriters verify balances at application and again before closing. A market decline can kill your approval if assets drop below required thresholds. Lock favorable markets quickly.
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.