Question 1

What types of assets qualify for asset depletion loans in Diamond Bar?

Accepted Answer

Checking and savings accounts, stocks, bonds, mutual funds, and retirement accounts like 401(k)s and IRAs typically qualify. Lenders require documentation showing seasoned funds with clear account statements.

Question 2

How much in assets do I need to buy a home in Diamond Bar?

Accepted Answer

Required assets depend on your purchase price and loan amount. Generally, expect to show significant liquid assets—often several hundred thousand dollars minimum after your down payment.

Question 3

Can I use my IRA for asset depletion qualification?

Accepted Answer

Yes, most lenders accept IRA and 401(k) balances for qualification purposes. They typically apply a discount factor, using 60-70% of retirement account values in their calculations.

Question 4

Do asset depletion loans require larger down payments than conventional loans?

Accepted Answer

Most asset depletion programs require at least 20-30% down. Larger down payments often secure better rates and terms. Rates vary by borrower profile and market conditions.

Question 5

How long does asset depletion loan approval take in Diamond Bar?

Accepted Answer

Timeline typically runs 30-45 days from application to closing. Gathering complete asset documentation upfront speeds the process. Your broker coordinates with lenders to streamline approval.

Asset Depletion Loans in Diamond Bar: Qualify Using Your Liquid Assets