Asset Depletion Loans and Using Crypto for Mortgage Qualification

Good morning, and Happy Tuesday! I’m excited to share two timely topics from my recent client experiences: asset depletion loans and the evolving role of cryptocurrency in mortgage financing. With nearly 35 years in the industry, I’ve seen creative solutions transform dreams into reality - let’s dive in!

Asset Depletion Loans: Tailored Paths to Ownership

Asset depletion loans are a lifeline for clients with substantial savings but no steady paycheck - think retirees, entrepreneurs, or those between gigs. We offer two approaches, each with unique benefits.

Non-QM Asset Depletion Loan: This flexible option turns your assets into income. Picture a client with $800,000 in assets. They use $200,000 for a down payment, leaving $600,000. We divide that by 60 months, resulting in $10,000 per month as qualifying income. This can be supplemented with additional sources, such as a part-time job, Social Security, or investment dividends - no age restrictions apply, making it versatile for all ages. It’s perfect for stacking income to meet lender requirements.

Fannie Mae/Freddie Mac Asset Depletion Loan: Here, we divide verifiable liquid assets (e.g., cash, stocks, or retirement funds) by 240 months to calculate income. For that same $600,000, you’d get $2,500 monthly. So you would need more income or assets to buy something in today’s market with this type of loan.

Both options can unlock homeownership, with Non-QM offering higher income potential and Fannie/Freddie providing a conservative, government-backed route.

Crypto Assets: From Digital Wealth to Down Payments

Recently, I worked with a client whose entire $800,000 net worth was in cryptocurrency - a growing trend! Here’s how we navigated it:

• Conversion to Cash: Crypto can’t be used as reserves, and Fannie Mae/Freddie Mac won’t accept it as an asset. However, if the client converts it to cash and we document the transfer via bank statements or exchange records - we can include it in the asset depletion calculation. That $800,000 becomes a verifiable down payment or income source once it is transferred to a traditional account.
• Lender Options: Some Non-QM lenders accept crypto account statements (e.g., from Coinbase or Binance) as assets, provided there’s a 60-90 day history. This is a niche workaround, but it’s less competitive than our standard lenders, and most traditional banks, especially Fannie/Freddie, remain hesitant due to crypto’s volatility.
• Practical Tips: If you’re heavily invested in crypto, plan your liquidation. There can be some other creative ways to document assets and verify them if we start early.

Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away.

📞 Cell: 661-714-6258

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Five straight days of improved rates! Nothing to write home about as we are still not close to our July 9th low and even further from the June 30th low we hit just a short time ago! Things are looking up, so let’s hope this trend continues.

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High Balance Loans from $806,501 to $1,209,750 are also in the 6’s and 7’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’s.
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No Ratio Loans require 30% down.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   

**Bad News for Condos***

American Beauty Village East – On the naughty list! The HOA is stating that approximately 20% are now delinquent on HOA dues. We are working on one of these now, and I wiill update you if something changes, but agents, be aware!

BIG NOTE –

This is the second condo with over 15% delinquency in the past week, indicating that people are starting to struggle with paying all their bills. Stay tuned for more enlightening BS from me! LOL!

The full state of California’s naughty list has been added to: MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Cell: 661-714-6258

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!