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Asset Depletion Loans in Ojai
Ojai attracts retirees, artists, and high-net-worth individuals who may not have traditional income. Asset depletion loans offer a path to homeownership for those with substantial savings or investments.
This Ventura County community values privacy and natural beauty. Many residents have wealth in portfolios rather than W-2 paychecks, making asset-based financing particularly relevant here.
Asset depletion loans calculate your income by dividing liquid assets by the loan term, typically 360 months. If you have $1 million in qualifying accounts, that translates to about $2,778 monthly income for qualification purposes.
Lenders review stocks, bonds, retirement accounts, and other liquid holdings. They apply a percentage of your total assets to determine borrowing power. This approach works well for asset-rich, income-light borrowers.
Credit scores typically need to be 680 or higher. Down payments usually start at 20% but can vary. Rates vary by borrower profile and market conditions.
Asset depletion loans fall under non-QM lending, meaning fewer lenders offer them than conventional mortgages. Working with experienced brokers gives you access to specialized lenders who understand asset-based qualification.
Each lender has unique asset requirements and calculation methods. Some count 100% of liquid assets while others use 70-80%. Finding the right match for your financial profile makes a significant difference in loan terms.
Many Ojai buyers assume they cannot qualify because they are retired or living off investments. Asset depletion loans solve this exact problem by recognizing wealth beyond paychecks.
We help structure your asset documentation to maximize qualifying power. Strategic planning around which accounts to include can increase your approved loan amount. This requires understanding both lending guidelines and your complete financial picture.
Asset depletion loans differ from bank statement loans, which rely on business deposit activity. They also differ from DSCR loans, which focus on rental property cash flow rather than borrower assets.
Foreign national loans serve international buyers, while 1099 loans work for contract workers. Asset depletion specifically targets those with significant liquid wealth. Each non-QM option addresses different borrower situations.
Ojai real estate often attracts second-home buyers and early retirees with substantial investment portfolios. These buyers may have sold businesses or accumulated wealth over decades but lack traditional employment.
The small-town character and limited inventory mean qualified buyers need flexible financing options. Asset depletion loans provide that flexibility without requiring income documentation that many Ojai buyers cannot provide.
Stocks, bonds, mutual funds, savings accounts, and retirement accounts typically qualify. Most lenders require funds to be liquid and verifiable through statements.
Yes, most lenders allow 401(k)s and IRAs. They typically count 60-70% of retirement account values to account for taxes and early withdrawal penalties.
It depends on the purchase price and loan amount. Generally, you need enough assets to show adequate monthly income when divided by 360 months, plus your down payment.
Rates are typically higher due to the non-QM nature. Rates vary by borrower profile and market conditions. Strong credit and larger down payments help secure better terms.
Timelines range from 30-45 days typically. Having organized financial documentation ready speeds the process. Working with experienced brokers helps avoid delays.
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.