Question 1

What assets count toward qualification in Rancho Santa Margarita?

Accepted Answer

Stocks, bonds, mutual funds, and retirement accounts qualify. Real estate equity and business assets typically don't count toward the calculation.

Question 2

Can I use my 401(k) without withdrawing funds?

Accepted Answer

Yes, retirement accounts count at their current value. You don't need to liquidate them — lenders verify balances through statements.

Question 3

How much do asset depletion loans cost versus conventional?

Accepted Answer

Expect rates 1-2 percentage points higher. A conventional loan at 7% might price at 8-8.5% with asset depletion terms.

Question 4

What credit score do I need for asset-based financing?

Accepted Answer

Most lenders require 620 minimum. Better credit above 680 unlocks lower rates and more favorable loan terms.

Question 5

Do I still need reserves after closing?

Accepted Answer

Yes, lenders require 6-12 months of reserves beyond the assets used for qualification. Plan for substantial post-closing liquidity.

Asset Depletion Loans in Rancho Santa Margarita — Qualify Using Your Investment Accounts