Question 1

What types of assets count for qualification?

Accepted Answer

Stocks, bonds, mutual funds, savings accounts, and money market accounts qualify. Retirement accounts like IRAs and 401(k)s count but may be discounted. Real estate equity typically doesn't count.

Question 2

How much should I expect in down payment?

Accepted Answer

Most lenders require 20-30% down for asset depletion loans. Higher down payments sometimes offset lower credit scores or improve rate pricing.

Question 3

Can I use retirement accounts to qualify?

Accepted Answer

Yes, IRAs and 401(k)s typically count but lenders may apply a 30-40% penalty discount to account for withdrawal taxes and fees. The remaining amount divides by the qualification period.

Question 4

How do rates compare to conventional mortgages?

Accepted Answer

Expect rates 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions. The premium reflects the non-traditional income verification approach.

Question 5

Do I need to actually liquidate my assets?

Accepted Answer

No, you don't liquidate anything for qualification. Lenders verify you own the assets through statements. They remain invested in your accounts throughout the loan.

Question 6

What credit score do I need for asset depletion loans?

Accepted Answer

Minimum scores start around 660, though 700+ gets better pricing. Higher scores and larger down payments help offset the non-traditional income approach.

Asset Depletion Loans in Berkeley: Qualify Using Your Portfolio, Not Your Paystub