Question 1

What assets qualify for asset depletion in Arcata?

Accepted Answer

Checking, savings, and brokerage accounts qualify. Retirement accounts often count at 60-70% of value depending on the lender.

Question 2

How does the lender calculate my income?

Accepted Answer

They divide your total eligible assets by a set number of months — often 120 to 360. That monthly figure becomes your qualifying income.

Question 3

Can I use this loan for a rental property in Humboldt County?

Accepted Answer

Yes, but a DSCR loan may serve you better. Asset depletion shines for primary and second homes with no rental income.

Question 4

Do I need to be retired to use asset depletion?

Accepted Answer

No. Any borrower with substantial liquid assets can apply. Retirees are common applicants, but this isn't limited to them.

Question 5

Is asset depletion harder to get approved in rural areas?

Accepted Answer

The loan itself isn't harder. But rural properties sometimes face tougher appraisals, which can affect your loan-to-value calculation.

Asset Depletion Loans in Arcata, CA