Question 1

How do lenders calculate income from assets?

Accepted Answer

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

Question 2

Can I use a 401k for asset depletion?

Accepted Answer

Yes, but most lenders discount retirement accounts before calculating. Expect 60–70% of the balance to count toward qualifying assets.

Question 3

Is asset depletion available for primary homes in Hanford?

Accepted Answer

Yes. Unlike DSCR loans, asset depletion works for primary residences and second homes — not just investment properties.

Question 4

What credit score do I need?

Accepted Answer

Most non-QM lenders require 680 or higher for asset depletion. Some go to 660, but pricing gets worse below 700.

Question 5

How much do I need in liquid assets to qualify?

Accepted Answer

It depends on the purchase price and loan amount. Your assets must generate enough calculated monthly income to cover the payment.

Question 6

Are asset depletion rates higher than conventional rates?

Accepted Answer

Yes — non-QM products carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Asset Depletion Loans in Hanford, CA