Question 1

What asset total do I need for a $400K Kerman purchase?

Accepted Answer

Roughly $650K minimum after your down payment and six months reserves. Lenders divide this by 360 months to create qualifying income, then apply standard debt ratios.

Question 2

Can I use my IRA or 401(k) balance without withdrawing funds?

Accepted Answer

Yes, retirement accounts count at full or partial value depending on the lender. You never withdraw the money — it just qualifies you for the loan amount.

Question 3

How do rates compare to conventional loans in Kerman?

Accepted Answer

Expect 1-2% higher rates as of February 2026. A conventional loan at 6.5% might price at 7.5-8.5% under asset depletion. Rates vary by borrower profile and market conditions.

Question 4

Do these loans require mortgage insurance?

Accepted Answer

No PMI exists on non-QM loans. You avoid that cost but pay higher interest rates instead. The tradeoff usually favors borrowers planning shorter hold periods.

Question 5

What disqualifies assets from counting toward the total?

Accepted Answer

Borrowed funds, recently deposited cash without source documentation, and real estate equity don't count. Lenders trace every deposit over $1,000 in the seasoning period.

Asset Depletion Loans in Kerman: Qualify with Savings, Not Paystubs