Question 1

How much in assets do I need for a Moraga home purchase?

Accepted Answer

Requirements vary by lender and purchase price, but expect minimums starting around $500,000 in liquid assets. Higher-priced Moraga properties may require $1 million or more in qualifying accounts.

Question 2

Do my retirement accounts count toward qualification?

Accepted Answer

Yes, 401(k)s, IRAs, and other retirement accounts typically qualify. Lenders usually apply a percentage discount to account for early withdrawal penalties, commonly using 60-70% of the account value.

Question 3

Can I use asset depletion for a second home in Moraga?

Accepted Answer

Absolutely. Asset depletion loans work for primary residences, second homes, and sometimes investment properties. Second home purchases are common applications for this program type.

Question 4

How do rates compare to conventional mortgages?

Accepted Answer

Rates vary by borrower profile and market conditions, but typically run 0.5-2 percentage points higher than conventional loans. Your credit score, down payment, and asset levels influence the final rate.

Question 5

What happens if my asset values fluctuate during underwriting?

Accepted Answer

Lenders verify assets close to closing. Significant declines in portfolio value could affect qualification. Maintain stable positions and avoid major transactions during your application period.

Asset Depletion Loans in Moraga: Qualify Using Your Investment Portfolio, Not Just Income