Question 1

Can I use my 401k for asset depletion qualification?

Accepted Answer

Yes, retirement accounts count. Lenders typically use 70% of the balance to account for taxes and early withdrawal penalties when calculating qualifying income.

Question 2

Do I have to liquidate assets to close the loan?

Accepted Answer

No, assets stay invested. Lenders verify balances through statements but don't require liquidation. You just need to maintain the documented asset levels through closing.

Question 3

How much does asset depletion cost compared to conventional?

Accepted Answer

Expect 1-2 percentage points higher rates and similar closing costs. The rate premium reflects non-QM status, not your financial strength or risk profile.

Question 4

Will cryptocurrency volatility affect my loan approval?

Accepted Answer

Lenders use average values over 60-90 days to smooth volatility. Most require crypto to represent under 50% of total qualifying assets to reduce concentration risk.

Question 5

What documents do I need for asset verification?

Accepted Answer

Expect 2-3 months of account statements for all assets used in qualification. Crypto requires blockchain verification and exchange statements showing ownership history and current balances.

Asset Depletion Loans in Lincoln: Qualify with Investments, Not Paychecks