Asset Depletion Loans
Primary Residences in California
Investment Properties Nationwide
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.
Who Would Benefit from an Asset Depletion Loan?
Asset Depletion Loans are ideal for high net worth individuals who cannot provide adequate income documentation, such as retired individuals and stock market investors.
How It Works
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.
- Non-retired and retired borrowers are eligible
- No increase to your current interest rate for using asset depletion income
- You can couple asset depletion income with other forms of income from W-2 wages, social security, pensions, self-employment income, etc.
- 75 percent maximum loan-to-value ratio (LTV)
- All occupancy and collateral types are allowed
- Up to 50 percent debt-to-income ratio (43 percent for a first-time homebuyer with a FICO score of less than 650)
Our Commitment to You
- Common Sense Underwriting With In-House Approvals
- Quick Closing
- Referrals Valued & Brokers Protected
- Committed to the Highest Level of Customer Satisfaction
Let’s Get Started
When you’re ready to take the next steps, please choose from one of the options below.
Schedule a Loan Officer Consultation