Question 1

Can I use my 401(k) to qualify for asset depletion?

Accepted Answer

Yes, but lenders differ on how they count it. Some use full balance, others discount it by 30% for early withdrawal penalties. Confirm treatment before applying.

Question 2

Do I need to liquidate my assets to get this loan?

Accepted Answer

No. Lenders use your asset balance to calculate income, but the money stays invested. You just can't use those same funds for your down payment.

Question 3

What if my assets are in my spouse's name only?

Accepted Answer

Most lenders allow spousal assets if both of you are on the loan. Community property rules in California help, but document ownership clearly upfront.

Question 4

How quickly can I close an asset depletion loan?

Accepted Answer

Expect 30-45 days. These are manually underwritten with detailed asset verification. Faster than stated income used to be, slower than agency loans.

Question 5

Will the lender monitor my asset balance after closing?

Accepted Answer

No. Once you close, the loan terms are set. Your portfolio can rise or fall without affecting your mortgage, unlike during the application phase.

Asset Depletion Loans in American Canyon — Qualify With Your Portfolio, Not Your Paystub