Question 1

How do lenders calculate income from assets?

Accepted Answer

They divide total eligible assets by a set number of months — typically 60 to 84. That figure becomes your qualifying monthly income.

Question 2

Can I use a 401(k) or IRA to qualify?

Accepted Answer

Yes, but most lenders apply a 30–40% discount to retirement accounts. Only the adjusted value counts toward qualifying income.

Question 3

Is this loan available for vacation homes in Mammoth?

Accepted Answer

Yes. Asset depletion works for primary, second home, and investment purchases. Second home deals in Mammoth are common with this program.

Question 4

What credit score do I need?

Accepted Answer

Most non-QM lenders require 680 or higher. Some go to 660 with compensating factors like larger assets or lower loan-to-value.

Question 5

How does the rate compare to a conventional loan?

Accepted Answer

Expect a higher rate than conventional — typically 1 to 2 points above. Rates vary by borrower profile and market conditions.

Question 6

Can I combine assets and part-time income to qualify?

Accepted Answer

Some lenders allow blended qualifying — part income, part asset depletion. Not all programs offer this, so lender selection matters.

Asset Depletion Loans in Mammoth Lakes, CA