Question 1

What assets qualify for asset depletion in Napa?

Accepted Answer

Checking, savings, brokerage, and vested retirement accounts typically qualify. Lenders discount retirement funds and exclude illiquid assets like real estate equity.

Question 2

Can I use this loan for a Napa wine country second home?

Accepted Answer

Yes. Most asset depletion programs allow second home purchases. Expect 25–30% down and higher reserve requirements on second home transactions.

Question 3

How does the lender calculate my income from assets?

Accepted Answer

They total your eligible assets and divide by the loan term in months. That monthly figure is treated as qualifying income for approval purposes.

Question 4

Do I need to be retired to use asset depletion?

Accepted Answer

No. Any borrower with sufficient liquid assets can qualify, regardless of employment status. It's simply an alternative income calculation method.

Question 5

Are asset depletion loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM programs like this carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

Question 6

How much in assets do I need to qualify in Napa?

Accepted Answer

It depends on the loan amount and term. Higher-priced Napa properties require more assets to generate enough calculated monthly income for approval.

Asset Depletion Loans in Napa, CA