Question 1

How much of my savings can I use as qualifying income?

Accepted Answer

Lenders typically divide your liquid assets by 120 or 240 months (10 or 20 years). A $500,000 portfolio becomes $4,167 monthly income over 10 years or $2,083 over 20 years.

Question 2

Do I have to withdraw money from my retirement accounts?

Accepted Answer

No. The lender counts the balance as qualifying income without requiring you to touch it. You keep the funds invested. The lender simply verifies the account exists and is in your name.

Question 3

What if my assets are in a trust or joint account?

Accepted Answer

Assets in your name or jointly owned typically qualify. Trusts are acceptable if you're the beneficiary or trustee. The lender needs clear documentation of ownership and control.

Question 4

Can I combine Asset Depletion income with Social Security or a pension?

Accepted Answer

Yes. Lenders add all documented income sources together. If you receive $2,000 monthly from Social Security and $1,500 from a pension, plus $2,500 from Asset Depletion, your total qualifying income is $6,000.

Question 5

How long does underwriting take for an Asset Depletion Loan?

Accepted Answer

Expect 45 to 60 days. The lender must verify 2 years of bank statements, trace asset sources, and confirm account ownership. Standard appraisal and title work run parallel. The asset verification step adds 2 to 3 weeks compared to conventional loans.

Asset Depletion Loans in Fremont: Qualify on Retirement Income