Loading
Asset Depletion Loans in Winters
Winters attracts retirees, business owners, and investors who hold substantial assets but lack W-2 income. Asset depletion loans let you qualify based on your investment accounts, retirement funds, and liquid savings rather than traditional paystubs.
This Non-QM financing option works well for Yolo County's agricultural community and retirees moving to Winters for its small-town charm. Your CPA statements and brokerage accounts become your proof of ability to repay.
Lenders calculate your qualifying income by dividing your total liquid assets by the loan term (typically 360 months for a 30-year mortgage). This method converts your wealth into documentable monthly income for underwriting purposes.
Most asset depletion programs require $500,000 to $1,000,000 in liquid assets after down payment and reserves. These assets must be accessible, not tied up in real estate equity or business interests that can't be easily liquidated.
You'll typically need a 620-680 minimum credit score and 20-30% down payment. Lenders accept assets from stocks, bonds, mutual funds, retirement accounts (401k, IRA), savings, and money market accounts as qualifying sources.
The calculation is straightforward: if you have $720,000 in assets and apply for a 30-year loan, that equals $2,000 monthly qualifying income ($720,000 ÷ 360 months). This income gets used to calculate your debt-to-income ratio.
Asset depletion loans come from Non-QM lenders who underwrite outside conventional guidelines. These lenders focus on your overall financial picture rather than income tax returns or employer verification forms.
Rates vary by borrower profile and market conditions, typically running 1-3% higher than conventional loans. The rate premium reflects the specialized underwriting and the flexibility these programs offer borrowers with non-traditional profiles.
Not all mortgage companies offer asset depletion products. You'll need a lender experienced with portfolio lending or Non-QM programs who understands how to document and verify alternative income sources properly.
The biggest mistake applicants make is waiting until after they retire to explore asset depletion loans. Start the conversation with your broker before you leave employment to understand exactly how much in assets you'll need.
Keep your assets consolidated and well-documented. Multiple small accounts across different institutions create documentation headaches. Lenders prefer seeing your wealth in 2-3 major accounts with clear statements.
Don't drain your assets for a larger down payment thinking it will help you qualify. The remaining assets after closing are what determine your qualifying income. Sometimes a smaller down payment with more assets left actually qualifies you for more house.
Bank statement loans work better if you have business revenue flowing through your accounts. Asset depletion shines when your wealth sits in investments rather than operating accounts with monthly deposits.
DSCR loans make sense for Winters investment properties where rental income covers the mortgage. Asset depletion fits better for primary residences or second homes where you're the occupant, not collecting rent.
Foreign national loans serve non-U.S. citizens, while asset depletion serves anyone with substantial savings but limited documentable income. Retirees, business sellers, and inheritance recipients often find asset depletion their best path to financing.
Winters' affordability compared to Davis or Sacramento makes it attractive for retirees looking to preserve capital. Your asset base goes further here, potentially qualifying you for the home you want while keeping substantial reserves intact.
Yolo County's agricultural heritage means many landowners and farming families hold wealth in ways that don't show up on tax returns. Asset depletion provides a solution when you've sold farmland or timber rights and now hold proceeds in investment accounts.
The community's slower pace and smaller scale means fewer competing buyers with traditional financing. Sellers appreciate asset depletion buyers who close reliably without employment verification delays that can derail conventional loans.
Stocks, bonds, mutual funds, 401(k)s, IRAs, savings accounts, CDs, and money market accounts all count. Real estate equity and business interests typically don't qualify as they're not liquid enough.
No, you don't actually liquidate anything. Lenders use your account statements to calculate qualifying income by dividing your total assets by the loan term, but the money stays invested.
Most programs require $500,000 to $1,000,000 in liquid assets remaining after your down payment and closing costs. The exact amount depends on the loan size and lender requirements.
Yes, many lenders let you combine asset depletion income with Social Security, pensions, or rental income to boost your qualifying power and potentially secure better terms.
Expect 30-45 days for complete underwriting. The timeline depends on how quickly you provide clear asset statements and how organized your financial documentation is at application.
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.