Question 1

What counts as liquid assets for qualification?

Accepted Answer

Stocks, bonds, mutual funds, money market accounts, and retirement funds at 70% value. Real estate equity and business holdings don't qualify.

Question 2

How much income do lenders calculate from my assets?

Accepted Answer

They divide your total liquid assets by 360 months. A $2 million portfolio generates roughly $5,555 monthly qualifying income.

Question 3

Can I use this loan for a Tiburon second home?

Accepted Answer

Yes, but expect 25-35% down and higher rates. Lenders scrutinize second home purchases more carefully on asset depletion programs.

Question 4

What if I'm still working but want to use assets?

Accepted Answer

You can blend W-2 income with asset depletion. Some lenders allow combining income sources to strengthen your application.

Question 5

How long does underwriting take compared to conventional loans?

Accepted Answer

Add 1-2 weeks for asset verification and non-QM underwriting. Total timeline runs 30-45 days versus 21-30 for conforming loans.

Asset Depletion Loans in Tiburon: Qualify Using Your Investment Portfolio