Question 1

Can I use retirement accounts for asset depletion in Sanger?

Accepted Answer

Yes, but lenders discount balances by 30-40% to account for withdrawal penalties and taxes. A $400,000 IRA might generate qualifying income based on $240,000-280,000.

Question 2

What interest rates should I expect on asset depletion loans?

Accepted Answer

Rates typically run 1.5-3 percentage points above conventional mortgages. Rates vary by borrower profile and market conditions based on credit score, LTV, and total asset depth.

Question 3

Do gift funds count toward qualifying assets?

Accepted Answer

No, gifted money covers down payment but doesn't generate qualifying income. You need seasoned assets in your name for at least 60-90 days before application.

Question 4

How much income does $300,000 in assets generate?

Accepted Answer

Dividing $300,000 by 360 months creates $833 monthly qualifying income. Most lenders use this calculation, though some adjust the divisor to 240 or 300 months.

Question 5

Can I combine asset depletion with other income sources?

Accepted Answer

Yes, lenders will add Social Security, pensions, or rental income to your asset-generated income. This combination often helps you qualify for higher loan amounts.

Asset Depletion Loans in Sanger: Qualify With Savings, Not Paystubs