An Asset Depletion Loan allows you to use the current cash value of your liquid assets – instead of traditional income sources such as pay stubs and tax returns – to demonstrate your ability to afford timely mortgage payments. This program is ideal for borrowers who have adequate liquid assets but lack traditional employment and/or methods of income verification.
Asset Depletion Loans are ideal for high net worth individuals who cannot provide adequate income documentation, such as retired individuals and stock market investors.
With an Asset Depletion Loan, your income is calculated by dividing your total liquid assets over 360 months. Assets that qualify as liquid assets include retirement accounts, investment accounts, checking accounts, savings accounts, stocks, bonds, CDs, etc. You can use 100 percent of your cash and non-retirement investment accounts in calculating your total liquid assets if you are over the age of 59.5, and 70 percent if you are under 59.5.
As an example, a 50-year-old borrower has $2,000,000 in liquid assets in a savings account and another $1,000,000 in a retirement account. His/her qualifying income would be $2,000,000 + $700,000 = $2,700,000 divided by 360 months, which equals $7,500 per month.
To help you determine if an Asset Depletion Loan is right for you, please contact one of our licensed Loan Specialists by calling us directly at 844-574-LOAN (5626), by submitting the form on the right or by completing an application directly on our website.
i. Loans are not available in all states; Westpark Loans only brokers loans in California.
ii. Rates are subject to change daily and throughout the day without notice.
iii. Neither this website nor its parent company is a lender.
iv. The rates and payments shown do not factor in all your information. Your specific situation may warrant a higher rate and payment based on credit history, income, and many other factors. Speak to one of our mortgage professionals to get personalized rate and monthly payment quotes.
v. Credit may exceed the fair market value of the dwelling. Interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. The consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.
vi. Stated Income products may have a higher interest rate, more points, or more fees than other products requiring documentation.
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