Question 1

How do lenders calculate income from my assets?

Accepted Answer

Total liquid assets divided by 360 months equals monthly income. A $1M portfolio creates $2,778 monthly qualifying income. Retirement accounts get 30% penalty discount first.

Question 2

Can I use assets in my spouse's name?

Accepted Answer

Yes if your spouse joins the loan application. All assets must be jointly held or the account owner must be on title. Lenders verify ownership through 60 days of statements.

Question 3

What assets don't qualify for depletion programs?

Accepted Answer

Real estate equity, business ownership, and cryptocurrency get excluded by most lenders. Stick with publicly traded stocks, bonds, and FDIC-insured accounts for cleanest approvals.

Question 4

Do I actually have to liquidate my assets?

Accepted Answer

No, assets stay invested throughout the loan term. Lenders just use the calculation to prove you could generate income. You maintain full control of your accounts.

Question 5

How does this compare to a securities-backed loan?

Accepted Answer

Asset depletion is a real mortgage with monthly payments. Securities-backed lines have variable rates and margin call risk. Asset depletion offers fixed terms without liquidation requirements.

Question 6

Can retirees under 59.5 use IRA assets?

Accepted Answer

Yes, but lenders discount the full balance by 30% for early withdrawal penalties. A $500k IRA qualifies as $350k in assets regardless of your actual withdrawal plans.

Asset Depletion Loans in Concord: Qualify with Your Portfolio, Not Your Paystub