Question 1

What assets count for asset depletion loans?

Accepted Answer

Stocks, bonds, mutual funds, and money market accounts at full value. Retirement accounts like 401(k)s and IRAs count at 60-70% depending on age and early withdrawal penalties.

Question 2

How do lenders calculate my qualifying income?

Accepted Answer

Total liquid assets divided by depletion term in months. A $1.8M portfolio over 24 months equals $75,000 annual income for qualification purposes.

Question 3

Can I use asset depletion for a Walnut Creek investment property?

Accepted Answer

Yes, most lenders allow it for investment properties. You'll need larger reserves and typically face 0.25-0.5% rate premium versus primary residence pricing.

Question 4

What credit score do I need for asset depletion in Contra Costa?

Accepted Answer

Minimum 660 with most lenders, but rates improve substantially at 700+. Expect 1-1.5% rate penalty below 680 on higher loan amounts.

Question 5

How does this compare to a bank statement loan?

Accepted Answer

Bank statement loans use cash flow from deposits and usually offer better rates. Asset depletion works better when you have wealth but minimal monthly income activity.

Question 6

What's the maximum loan amount for asset depletion?

Accepted Answer

Most lenders cap at $3-4M, though a few go higher with exceptional profiles. Loan-to-value typically maxes at 80% for purchases, 75% for cash-out refinances.

Asset Depletion Loans in Walnut Creek — Qualify on Wealth, Not Paychecks