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Asset Depletion Loans in Porterville
Porterville's housing market attracts retirees and entrepreneurs who have substantial savings but no traditional paycheck. Asset depletion loans let you qualify based on liquid assets in bank accounts, investment portfolios, or retirement funds.
This loan type works well in Tulare County where agricultural business owners and farmland investors often hold significant wealth outside of W-2 income. Lenders convert your asset balance into qualifying income by dividing by a set number of months.
Most lenders require $500,000 to $1 million in liquid assets to make this work. They divide your total balance by 60 to 120 months to calculate monthly qualifying income.
You'll need 620+ credit and 20-30% down depending on property type. Stocks, bonds, mutual funds, and non-retirement savings all count. Some lenders include 70% of retirement account balances since early withdrawal penalties reduce usable funds.
Asset depletion sits in the non-QM space. About 15-20 of our 200+ wholesale lenders offer this program. Each has different asset requirements and calculation methods.
Some lenders divide by 60 months. Others use 84 or 120 months. That difference changes your qualifying income by 40-50%. Shopping multiple lenders isn't optional with this loan type—it's how you get approved.
I use asset depletion for three borrower types: retirees with large IRAs, entrepreneurs between business exits, and foreign nationals with U.S. investment accounts. The borrower who fails is someone with $400K in assets trying to buy a $600K house.
The math doesn't bend. If you need $8,000 monthly income to qualify and have $600K in assets, a 60-month calculation gives you $10,000. That works. A 120-month calculation gives you $5,000. That fails. We run scenarios across lenders before you pick a property.
Bank statement loans use 12-24 months of deposits to calculate income. Asset depletion ignores cash flow and looks only at account balances. If you're retired with no deposits, asset depletion wins.
DSCR loans work for investment properties using rental income. Asset depletion works for primary homes where you have wealth but no income stream. For foreign nationals, asset depletion often pairs with larger down payments since income documentation from overseas creates compliance issues.
Porterville home prices make asset depletion viable for retirees downsizing from coastal cities. $500K in assets can qualify you for most properties in the area when lenders use favorable calculation periods.
Agricultural families in Tulare County often hold wealth in land equity and equipment rather than liquid accounts. Asset depletion only counts cash and securities. You'd need to liquidate or consider alternative programs like bank statement loans that use farm income deposits.
Yes, most lenders count retirement accounts at 70% of balance due to withdrawal penalties. A $1 million IRA calculates as $700K in qualifying assets.
Non-QM asset depletion rates run 1.5-3% above conventional loans. Rates vary by credit, down payment, and asset strength.
No. Lenders verify balances but don't require withdrawal. You keep assets invested and use them only for qualification math.
With 25% down, you need roughly $600K-$800K in assets depending on which lender calculation method qualifies you. Run exact numbers with a broker first.
Some lenders allow business accounts if you're the sole owner. Most prefer personal accounts, investment portfolios, and retirement funds.
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.