Question 1

How do lenders calculate income from my assets?

Accepted Answer

They divide eligible assets by the loan term in months. A $1.8M portfolio over 360 months equals $5,000/month in qualifying income.

Question 2

Can I use my IRA or 401k to qualify?

Accepted Answer

Yes, but lenders typically count retirement accounts at 60-70% of value. The discount accounts for early withdrawal taxes and penalties.

Question 3

Does this work for a second home in Markleeville?

Accepted Answer

It can. Second home occupancy may require higher reserves. Confirm terms with your lender before assuming standard guidelines apply.

Question 4

What credit score do I need for asset depletion?

Accepted Answer

Most non-QM lenders want 680 or higher. Some go lower, but rates rise sharply below 700. Rates vary by borrower profile and market conditions.

Question 5

How is this different from a stated income loan?

Accepted Answer

Asset depletion is fully documented — you prove your assets exist. Stated income loans from the 2000s required no documentation at all.

Asset Depletion Loans in Markleeville, CA