Question 1

How do lenders calculate my qualifying income from assets?

Accepted Answer

Lenders divide your total liquid assets by the loan amortization period, typically 60-360 months. A $900,000 portfolio divided by 180 months equals $5,000 monthly qualifying income.

Question 2

Can I use retirement accounts like 401(k) or IRA for qualification?

Accepted Answer

Yes, most programs count retirement accounts, though some lenders discount the value by 10-30% to account for early withdrawal penalties. Vested balances qualify fully.

Question 3

What interest rates should I expect on asset depletion loans in Firebaugh?

Accepted Answer

Rates typically run 1-3% higher than conventional loans due to Non-QM classification. Rates vary by borrower profile and market conditions, with stronger credit and larger down payments earning better pricing.

Question 4

Do I need to liquidate my assets to qualify or close?

Accepted Answer

No, lenders verify asset ownership and balances but don't require liquidation for qualification. You only need to provide funds for your down payment and closing costs at settlement.

Question 5

Can self-employed borrowers in Firebaugh use asset depletion instead of tax returns?

Accepted Answer

Absolutely. Asset depletion works well for business owners who minimize taxable income through deductions. Your portfolio qualifies you without tax return analysis.

Asset Depletion Loans in Firebaugh: Qualify Using Your Savings, Not Your Paycheck