Question 1

What assets count for asset depletion loans in Cerritos?

Accepted Answer

Checking, savings, stocks, bonds, mutual funds, money market accounts, and vested retirement accounts all qualify. Most lenders exclude real estate equity and business assets.

Question 2

Can I use retirement accounts for asset depletion qualification?

Accepted Answer

Yes, but lenders typically discount them by 20-30% to account for early withdrawal penalties. A $500K IRA might only count as $350K toward qualification.

Question 3

How much do asset depletion loan rates run in Cerritos?

Accepted Answer

Expect 7.5-9% based on current conditions, credit score, and down payment. This runs 1-2% above conventional rates. Rates vary by borrower profile and market conditions.

Question 4

What down payment do I need for asset depletion in Los Angeles County?

Accepted Answer

Most lenders require 20-30% down. Larger down payments often unlock better rates and more favorable asset calculation methods.

Question 5

How long does asset depletion underwriting take?

Accepted Answer

Plan for 30-45 days from application to close. Non-QM loans take longer than conventional because underwriters manually review all account statements and asset documentation.

Question 6

Do Cerritos lenders accept stocks as qualifying assets?

Accepted Answer

Yes, publicly traded stocks in brokerage accounts work well. Lenders use recent statement values and may average balances across several months to smooth volatility.

Asset Depletion Loans in Cerritos: Qualify Using Your Investment Portfolio