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Asset Depletion Loans in Visalia
Visalia's housing market serves a mix of agricultural business owners and retirees who don't show traditional income. Asset depletion loans let you qualify using investment accounts, retirement funds, or liquid assets instead of W-2s.
This loan type fits Tulare County's entrepreneurial landscape where substantial savings often exceed documented income. Lenders convert your asset balance into a monthly income stream for qualification purposes.
Most lenders require $500,000 minimum in verified liquid assets after down payment and closing costs. They divide your total assets by 360 months to create a qualifying income figure.
Credit scores typically start at 680, with 20-30% down payment expected. Savings accounts, investment portfolios, retirement funds, and stocks all count toward your asset total.
Only non-QM lenders offer true asset depletion programs since these loans fall outside conventional guidelines. Rates run 1.5-2.5% above conventional pricing due to portfolio lending risk.
We access 30+ non-QM lenders with different asset calculation methods and reserve requirements. Some count 100% of liquid assets while others discount retirement accounts to 70% of value.
Visalia borrowers often have farm sale proceeds or business liquidity events that create high assets but low tax returns. Asset depletion works better than bank statement loans when your accounts show the story.
Lenders scrutinize large recent deposits, so document any asset transfers months before applying. The strongest files show consistent balances across multiple quarters with clear sourcing for major additions.
Bank statement loans make sense if you're self-employed with active business income. Asset depletion fits retirees or those living off investments without regular deposits.
Foreign national loans require similar down payments but allow offshore assets. DSCR loans work for investment properties only, while asset depletion covers primary residences in Visalia.
Tulare County's agricultural economy creates unique qualifying scenarios where land sales generate substantial liquid assets. Many Visalia applicants hold CDs and savings rather than stock portfolios.
Property values in Visalia allow meaningful purchases with the typical $1-2M loan limits on asset depletion programs. Higher-priced Central Valley markets may bump against those caps.
Checking, savings, money markets, stocks, bonds, and mutual funds all qualify. Most lenders count 70-100% of IRA and 401k balances depending on age and withdrawal penalties.
Some lenders allow asset depletion for investment properties but most limit this to primary residences. DSCR loans typically work better for Visalia rental properties.
They divide total verified liquid assets by 360 months to create monthly income. $720,000 in assets equals $2,000 monthly qualifying income using this standard formula.
No — the term describes the qualification method, not a requirement to spend down assets. Your accounts remain yours throughout the loan term.
Current rates run 1.5-2.5% above conventional mortgages depending on credit and down payment. Rates vary by borrower profile and market conditions.
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.