Question 1

How much in assets do I need to qualify for a Long Beach home?

Accepted Answer

Most lenders require $500,000 to $1 million minimum in liquid assets. The exact amount depends on the property price and how the lender calculates asset-based income, typically dividing total assets by 360 months.

Question 2

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

Accepted Answer

Yes, retirement accounts typically qualify. However, lenders may apply a discount factor (often 70%) to account for penalties and taxes on early withdrawal, even though you won't actually withdraw the funds.

Question 3

What interest rates should I expect on an asset depletion loan?

Accepted Answer

Rates vary by borrower profile and market conditions but generally run 1-3 percentage points above conventional mortgages. Your specific rate depends on credit score, down payment, and total asset position.

Question 4

Do property values in Long Beach affect my asset depletion qualification?

Accepted Answer

Higher property prices mean you need more qualifying income, which requires larger asset portfolios. Coastal Long Beach properties may require $1 million or more in assets depending on purchase price and down payment.

Question 5

How long does asset depletion loan approval take in Long Beach?

Accepted Answer

Processing typically takes 30-45 days, similar to conventional loans. The key is providing complete asset documentation upfront including all account statements for the past 60-90 days from qualified institutions.

Asset Depletion Loans in Long Beach: Qualify Using Your Portfolio, Not Your Paycheck