Question 1

What assets count toward qualifying income?

Accepted Answer

Stocks, bonds, mutual funds, money market accounts, and retirement accounts all qualify. Most lenders discount retirement accounts by 30% since they're less liquid.

Question 2

Can I use asset depletion for investment properties in LA?

Accepted Answer

Yes, but DSCR loans usually offer better terms for rentals. Asset depletion works best for primary residences or second homes where rental income doesn't apply.

Question 3

How much higher are asset depletion rates versus conventional?

Accepted Answer

Expect 1.5-2.5% higher rates than conventional loans. The spread narrows with larger down payments and stronger credit profiles above 740.

Question 4

Do lenders require proof of where assets came from?

Accepted Answer

Yes. You'll provide 2-3 months statements showing consistent balances. Recent large deposits require gift letters or source documentation.

Question 5

Can I qualify if assets are in a trust?

Accepted Answer

Most lenders accept trust assets if you're the beneficiary with withdrawal rights. You'll need trust documents proving access to funds.

Asset Depletion Loans in Los Angeles — Qualify Using Your Savings, Not Your Paystub