Question 1

What counts as liquid assets for asset depletion loans?

Accepted Answer

Stocks, bonds, mutual funds, money market accounts, and retirement accounts like 401(k)s and IRAs all count. Real estate equity and business ownership don't qualify as liquid assets.

Question 2

Can I use retirement accounts without withdrawing funds?

Accepted Answer

Yes—lenders count retirement balances toward the asset total without requiring withdrawals. You keep your portfolio invested and avoid early withdrawal penalties.

Question 3

How much do I need in assets to buy in San Pablo?

Accepted Answer

For a $400K purchase, you'd need roughly $600K in liquid assets after the 20% down payment. That creates enough qualifying income for most San Pablo properties.

Question 4

Do asset depletion loans work for investment properties?

Accepted Answer

Yes—you can use asset depletion for both primary residences and San Pablo rental properties. Rental income doesn't factor into qualification since assets determine approval.

Question 5

What if my portfolio value drops during underwriting?

Accepted Answer

Lenders typically use a 30-day average, which smooths daily fluctuations. A significant sustained drop can reduce qualifying income and affect loan approval amounts.

Asset Depletion Loans in San Pablo: Qualify Using Your Investment Portfolio