Question 1

What assets qualify for this loan in California?

Accepted Answer

Most lenders accept checking, savings, brokerage, and retirement accounts. Business accounts and illiquid assets like real estate equity typically don't count.

Question 2

Can I use this loan to buy a second home in Trinidad?

Accepted Answer

Yes. Asset depletion programs work for primary residences and second homes. Investment property purchases usually fit better under DSCR.

Question 3

How is my qualifying income calculated?

Accepted Answer

Lenders divide eligible assets by the loan term in months. A $1.8M portfolio divided by 360 months equals $5,000 in monthly qualifying income.

Question 4

Do retirement accounts count toward asset depletion?

Accepted Answer

Usually yes, but lenders typically apply a 60-70% haircut to retirement balances. Accessible liquid accounts count at full value.

Question 5

Is asset depletion considered a non-QM loan?

Accepted Answer

Yes. It falls outside standard qualified mortgage guidelines. Rates are higher than conventional, and not all lenders offer it. Rates vary by borrower profile and market conditions.

Asset Depletion Loans in Trinidad, CA