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Asset Depletion Loans in Tulare
Tulare's agricultural economy creates unique income patterns that traditional underwriting misses. Farmers, processors, and business owners often park profits in accounts rather than taking regular W-2 salaries.
Asset depletion converts your liquid holdings into qualifying income—typically dividing total assets by 360 months. A borrower with $1.8M in accounts shows $5,000 monthly income on paper, even with zero employment.
This program works well for Tulare buyers who've sold farmland, business interests, or received inheritances. Your bank balance becomes your income documentation.
You need verified liquid assets—checking, savings, stocks, bonds, retirement accounts. Most lenders require $500K minimum in seasoned funds, though some accept $250K for smaller loans.
Credit scores start at 680 for conforming amounts, 700+ for larger purchases. Loan-to-value caps at 80-85% in most cases, requiring 15-20% down payment.
Assets must be liquid and accessible. Lenders don't count real estate equity, business valuation, or illiquid partnerships in your asset total.
Asset depletion lives exclusively in non-QM lending. You won't find this through your local credit union or big retail banks—they're locked into Fannie and Freddie guidelines.
We access 200+ wholesale lenders with different asset calculation methods. Some count 70% of retirement accounts, others allow 100%. Rate spreads between lenders run 0.5-1.25% on identical scenarios.
Pricing runs 1-2% higher than conventional rates due to portfolio lending risk. Rates vary by borrower profile and market conditions, but expect mid-to-upper single digits currently.
Most Tulare borrowers using asset depletion are either business owners avoiding W-2 draws or retirees with portfolios. We rarely see pure asset plays under $400K property values—the pricing doesn't justify it.
Timing matters. Don't liquidate stocks to boost cash balances right before applying—that creates sourcing nightmares. Lenders want 60-90 days of stable account history, not sudden deposits.
The biggest mistake is counting all assets equally. Lenders discount retirement accounts heavily, sometimes only crediting 60-70%. Your $1M IRA might only show as $600K-700K for qualification.
Bank statement loans make more sense if you have consistent business deposits. Asset depletion works when your income is irregular or you've stopped working entirely but hold significant savings.
DSCR loans beat asset depletion for rental property purchases—you qualify on the property's cash flow instead of depleting your personal holdings. Save asset depletion for primary residences.
1099 loans require active self-employment income. Asset depletion requires nothing but account balances, making it the only option for truly retired or non-working borrowers with wealth.
Tulare County properties often sit on larger parcels, which creates appraisal complications for portfolio lenders. Mixed-use ag properties with residences require specialized valuation—not all asset depletion lenders accept them.
Well water, septic systems, and rural access roads trigger additional scrutiny. Your asset calculation might qualify you, but the property still needs to meet non-QM guidelines for condition and utilities.
Many Tulare buyers using this program are consolidating ag holdings into primary residences. Make sure your lender understands farm-adjacent properties—urban-focused portfolio lenders often balk at rural Tulare County.
Yes, but most lenders only count 60-70% of IRA and 401(k) balances. A $500K retirement account might only contribute $300K-350K toward your asset calculation.
Most lenders require 680 minimum, with 700+ for better pricing. Higher scores can offset lower down payments or smaller asset pools.
They can, but DSCR loans usually make more sense. Asset depletion works best for primary residences when you lack traditional income but have significant savings.
Most lenders want 60-90 days of stable balances. Recent large deposits require full sourcing documentation, which defeats the program's simplicity.
Yes. Some borrowers use asset depletion to fill income gaps, adding it to rental income, Social Security, or pension payments for full qualification.
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.