Question 1

Can I use my retirement account to qualify for an Asset Depletion Loan?

Accepted Answer

Yes — most lenders accept retirement accounts (401k, IRA, SEP-IRA) as qualifying assets. You don't withdraw the money; the lender divides the balance by 360 months to create monthly income.

Question 2

What credit score do I need for an Asset Depletion Loan in Berkeley?

Accepted Answer

Most lenders require 620+ FICO. Some accept 600+ if your assets are substantial and your down payment is 25% or higher. The lower your score, the higher the rate. Pull your credit report before applying to know where you stand.

Question 3

How much down payment is required?

Accepted Answer

Asset Depletion Loans typically require 20% to 30% down. The higher your down payment, the easier the approval. At 20% down, you skip mortgage insurance entirely. Lenders use the down payment as proof of financial stability.

Question 4

How long does it take to close an Asset Depletion Loan?

Accepted Answer

Plan on 45 to 60 days. The underwriting is manual because the income calculation is custom. Conventional loans close in 30 to 40 days. The extra time reflects the lender's need to verify your assets and income sources thoroughly.

Question 5

Do I need recent tax returns to qualify?

Accepted Answer

No — that's the whole point of Asset Depletion Loans. You provide bank statements (2–3 months) and proof of asset ownership instead. If you have W-2 income, the lender will ask for one year of tax returns.

Asset Depletion Loans in Berkeley: Tap Your Savings to Buy