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Asset Depletion Loans in Sonora
Sonora attracts retirees and investors with substantial assets but limited W-2 income. Asset depletion loans let you qualify based on liquid holdings—stocks, bonds, retirement accounts—without proving traditional employment.
This loan makes sense for Tuolumne County buyers transitioning out of corporate careers or managing wealth from previous business exits. You convert your portfolio value into qualifying income using a simple calculation.
Lenders divide your total liquid assets by 360 months to create a monthly income figure. A $1 million portfolio generates roughly $2,778 per month in qualifying income using this method.
You need at least $500,000 in verifiable liquid assets after down payment and closing costs. Credit scores typically start at 680, with 20-30% down depending on loan amount and asset depth.
Most retail banks in Tuolumne County won't touch asset depletion loans. This program lives in the Non-QM space with specialized lenders who understand high-net-worth borrowers.
We access 15-20 lenders offering asset depletion programs with different asset types accepted and depletion formulas. Some count retirement accounts at full value, others discount them by 30-40% for early withdrawal penalties.
I see asset depletion work best for Sonora buyers with $1-3 million in liquid assets buying homes under $800K. The math falls apart when you need aggressive leverage or have minimal post-close reserves.
Combine this with a DSCR loan if you're buying investment property. Use asset depletion for your Sonora primary residence and keep rental income documentation separate and cleaner.
Bank statement loans require 12-24 months of statements and income calculations from deposits. Asset depletion skips that entirely—just verify you own the assets through recent brokerage statements.
Foreign national loans demand larger down payments and higher rates. Asset depletion offers better pricing if you're a U.S. citizen or permanent resident with investable wealth but irregular income patterns.
Sonora's lower property values mean your asset portfolio stretches further here than in coastal California markets. A $750K portfolio might not qualify you in San Francisco but works cleanly for a $400K Sonora purchase.
Appraisals in Tuolumne County sometimes lag 30-45 days during busy seasons. Plan your asset account liquidation timing carefully—you need those funds seasoned and documented before closing.
Yes, but most lenders discount it by 30-40% to account for early withdrawal penalties and taxes. A $1 million 401(k) might only count as $600K-700K in qualifying assets.
No. You only need to prove you own the assets through recent statements. The depletion calculation is hypothetical—lenders don't require you to sell anything.
Rates vary by borrower profile and market conditions. Expect 1-2 points above conventional rates, typically landing in the 7-9% range for qualified borrowers with strong credit.
Absolutely. If you have part-time W-2 income or rental income from other properties, lenders will stack that on top of your asset depletion calculation.
Figure 30-45 days from application to close. The documentation is straightforward, but rural appraisals and title work add time compared to metro areas.
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.