Question 1

What assets count toward qualifying income in King City?

Accepted Answer

Checking, savings, brokerage, and retirement accounts all count. Most lenders require assets to be fully vested and accessible.

Question 2

Can I use asset depletion if I have some self-employment income?

Accepted Answer

Yes. Some lenders will combine asset depletion income with partial self-employment income. That can increase your qualifying amount significantly.

Question 3

How much do I need in liquid assets to qualify?

Accepted Answer

It depends on the loan amount. The lender divides your assets by 60–84 months — that monthly figure must meet their debt-to-income requirement.

Question 4

Are asset depletion loans more expensive than conventional loans?

Accepted Answer

Rates run higher than conventional — this is non-QM lending. Rates vary by borrower profile and market conditions.

Question 5

Can I use an IRA or 401(k) for asset depletion in Monterey County?

Accepted Answer

Usually yes, but many lenders apply a 30%–40% haircut to retirement accounts. A broker can find lenders with more favorable treatment.

Question 6

How long does it take to close an asset depletion loan?

Accepted Answer

Non-QM loans typically close in 21–30 days. Clean documentation up front is the biggest factor in hitting that timeline.

Asset Depletion Loans in King City, CA