Question 1

Do I need to liquidate my assets to get approved?

Accepted Answer

No. Lenders verify account balances but don't require you to sell investments. The assets stay in your accounts throughout the loan term.

Question 2

Can I use my 401(k) or IRA for asset depletion?

Accepted Answer

Most lenders allow retirement accounts if you're 59½ or older. Younger borrowers typically can't use age-restricted accounts for qualifying income calculations.

Question 3

What happens if my asset values drop after closing?

Accepted Answer

Nothing. Lenders verify assets at application and closing. Market fluctuations after funding don't affect your loan terms or payment obligations.

Question 4

How long does asset depletion underwriting take in Willows?

Accepted Answer

Expect 25-35 days from application to closing. Rural appraisals and specialty non-QM underwriting take longer than conventional loans in urban markets.

Question 5

Can I combine asset depletion with rental income?

Accepted Answer

Yes. Many lenders add documented rental income to your asset-derived income. This helps when assets alone don't reach the required debt-to-income ratio.

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