Question 1

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

Accepted Answer

Yes, but lenders only count 70% of retirement accounts to account for early withdrawal penalties. Taxable brokerage accounts count at 100% of verified value.

Question 2

Do I need to liquidate assets to close the loan?

Accepted Answer

No, you keep your investments intact. Lenders verify account balances through statements but don't require you to sell anything except for your down payment and closing costs.

Question 3

How do lenders value cryptocurrency for qualification?

Accepted Answer

Lenders discount crypto holdings 30-50% due to volatility and typically cap them at 25% of total qualifying assets. You'll need traditional assets as your primary qualification base.

Question 4

What interest rates should I expect versus conventional loans?

Accepted Answer

Rates run 1.5-3% higher than conforming mortgages. Strong credit and 30%+ down payment land you closer to the low end of that range.

Question 5

Can I combine asset depletion with other income sources?

Accepted Answer

Yes, we can stack Social Security, pensions, or rental income with asset depletion. This hybrid approach often gets you better loan terms and lower rates.

Asset Depletion Loans in Corcoran: Qualify Using Your Portfolio, Not Paychecks