Question 1

Can I use retirement accounts (IRA, 401k) for asset depletion?

Accepted Answer

Yes, but with penalties factored in. Most lenders allow IRAs and 401(k)s but reduce the qualifying value by 20% to account for early-withdrawal taxes. A $200K IRA counts as $160K. Some lenders won't touch retirement accounts at all.

Question 2

What's the minimum down payment on an Asset Depletion Loan?

Accepted Answer

Typically 5–10% for borrowers with strong assets and 620+ FICO. Some lenders require 15–20% if your FICO is 620–640 or if assets are borderline. The larger your asset base relative to the loan amount, the lower the down payment requirement.

Question 3

How long does it take to close an Asset Depletion Loan?

Accepted Answer

45–60 days is standard. Underwriters spend extra time verifying account statements, reviewing asset history, and confirming no liens or claims on the funds. Conventional loans close in 30 days because income verification is simpler.

Question 4

Do Asset Depletion Loans work for self-employed borrowers?

Accepted Answer

Yes. Self-employed borrowers with 2 years of tax returns can use income plus assets. If your business income is lumpy or declining, assets fill the gap.

Question 5

What's the rate difference between Asset Depletion and conventional?

Accepted Answer

Asset Depletion Loans typically run 0.25–0.5% higher than conventional because documentation is more complex. If conventional is 6.5%, expect 6.75–7.0% on Asset Depletion. Call for today's exact pricing—rates vary by lender and your specific profile.

Asset Depletion Loans in Larkspur: Qualify on Savings, Not Just Income