Question 1

Can I use an Asset Depletion Loan if I'm retired with no W-2 income?

Accepted Answer

Yes. Asset Depletion Loans are designed for retirees and others with limited W-2 income. Your liquid assets replace income documentation.

Question 2

How much in assets do I need to qualify?

Accepted Answer

Most lenders require assets equal to 60 to 120 months of your proposed mortgage payment. On a $4,500 monthly payment, that's $270,000 to $540,000 in liquid assets. The exact requirement depends on the lender and your credit score.

Question 3

What counts as liquid assets for qualification?

Accepted Answer

Savings accounts, money market funds, stocks, bonds, and mutual funds count. Real estate, retirement accounts (401k, IRA), and vehicles typically do not.

Question 4

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

Accepted Answer

Expect 45 to 60 days. Asset verification is thorough and takes time. Conventional loans close in 30 to 40 days. The extra time reflects the deeper documentation required to prove your assets can sustain the payment.

Question 5

Will my rate be higher than a conventional loan?

Accepted Answer

Yes, typically 0.25% to 0.5% higher. Asset Depletion is a niche product with fewer lenders and higher underwriting costs. The rate premium reflects that specialization and risk profile.

Asset Depletion Loans in Pleasanton: Retire and Buy Without Selling Investments