Question 1

Which assets qualify for calculation?

Accepted Answer

Stocks, bonds, mutual funds, money markets, and savings count at 100%. Most lenders include IRAs and 401ks at 70% if you're under 59½, 100% if older.

Question 2

Can I use assets held jointly with a spouse?

Accepted Answer

Yes, but some lenders require both spouses on the loan. Others allow you to use joint accounts even if only one spouse applies for the mortgage.

Question 3

How quickly do these loans close?

Accepted Answer

30-45 days typically. Gathering asset statements takes time, but underwriting moves faster than tax return loans since there's less documentation to verify.

Question 4

Do I need to liquidate assets to qualify?

Accepted Answer

No. Lenders calculate income from your statements but don't require you to sell anything. Assets stay invested while you own the home.

Question 5

What if my assets fluctuate with the market?

Accepted Answer

Lenders use a 60-90 day average, not a single day's balance. This smooths market volatility and prevents denials from temporary drops.

Question 6

Are rates higher than conventional mortgages?

Accepted Answer

Yes, expect 2-4% above conforming rates. You're paying for flexibility to qualify without employment income. Rates vary by borrower profile and market conditions.

Asset Depletion Loans in St. Helena: Qualify Without W-2 Income