Question 1

Do I need to liquidate assets to qualify for an asset depletion loan?

Accepted Answer

No. Lenders calculate income from your portfolio balance without requiring withdrawals. Your assets stay invested throughout the loan term.

Question 2

Can I use retirement accounts if I'm under 59.5 years old?

Accepted Answer

Yes. Asset depletion counts 401(k) and IRA balances without triggering early withdrawal penalties. The calculation works on paper only.

Question 3

How do lenders verify my asset balances for qualification?

Accepted Answer

They require 2-3 months of statements from each account. Balances must remain consistent across the statement period to validate the asset total.

Question 4

What happens to my assets after the loan closes?

Accepted Answer

You control them completely. Lenders don't monitor your portfolio or restrict how you invest after closing. Only the closing date balance matters.

Question 5

Can I combine asset depletion with gift funds for down payment?

Accepted Answer

Most lenders allow 10-20% of down payment from gift funds. The remaining assets must be seasoned in your accounts for 60+ days.

Asset Depletion Loans in Ross: Finance Your Marin Estate With Liquidity, Not Pay Stubs