Question 1

What types of assets qualify for income calculation?

Accepted Answer

Checking, savings, brokerage accounts, IRAs, 401(k)s, and cash value life insurance all qualify. Most lenders accept 70-100% of documented liquid assets depending on account type and accessibility.

Question 2

Can I use assets in my spouse's name to qualify?

Accepted Answer

Yes, if your spouse applies as a co-borrower. All assets used for qualification must belong to borrowers on the loan application, and both borrowers' credit profiles affect approval.

Question 3

How much higher are rates compared to conventional loans?

Accepted Answer

Expect rates 1-2% above conventional programs. The exact premium depends on credit score, down payment, and property type. Rates vary by borrower profile and market conditions.

Question 4

Do I need to liquidate my assets to close the loan?

Accepted Answer

No, assets remain in your accounts. Lenders calculate theoretical income from your portfolio without requiring you to sell investments or withdraw retirement funds.

Question 5

What credit score do I need for asset depletion loans?

Accepted Answer

Most lenders require minimum 620 credit, though some programs start at 660. Higher scores unlock better rates and lower down payment requirements, typically 20-30% minimum.

Question 6

Can I use this for investment properties in Palm Springs?

Accepted Answer

Yes, but DSCR loans often work better for non-owner-occupied properties since they ignore personal finances entirely. We compare both options to find the best fit for your situation.

Asset Depletion Loans in Palm Springs: Qualify Using Your Portfolio, Not a Paycheck