Question 1

What assets count for asset depletion loans?

Accepted Answer

Checking, savings, stocks, bonds, mutual funds, and retirement accounts all count. Most lenders discount retirement accounts to 70% of value due to early withdrawal penalties.

Question 2

Can I use assets in my spouse's name?

Accepted Answer

Yes, if your spouse co-signs the loan. All borrowers on the mortgage can combine their verified assets for the qualification calculation.

Question 3

How much higher are rates compared to conventional loans?

Accepted Answer

Expect 1-2% higher interest rates. Rates vary by borrower profile and market conditions, with larger asset portfolios sometimes qualifying for better pricing.

Question 4

Do I need to liquidate my assets to close?

Accepted Answer

No, assets stay invested. Lenders verify holdings through statements but don't require you to convert them to cash for the purchase.

Question 5

What if my assets are mostly in one retirement account?

Accepted Answer

That works, but lenders will discount the value. A $1M IRA might count as $700K in qualifying assets due to tax and penalty considerations.

Asset Depletion Loans in Covina: Qualify Using Your Portfolio, Not Your Paystub