Question 1

Can I use my 401k to qualify for an asset depletion loan?

Accepted Answer

Yes, but most lenders discount retirement accounts — typically counting 60-70% of the balance. The exact haircut depends on your age and the lender's guidelines.

Question 2

How much do I need in assets to qualify in San Juan Bautista?

Accepted Answer

It depends on the purchase price and loan term. Higher-priced homes require more assets to generate enough calculated monthly income to meet debt-to-income requirements.

Question 3

Is asset depletion available for second homes?

Accepted Answer

Yes. Many buyers use this program for second homes and vacation properties. Lender requirements on second homes may include slightly higher reserves.

Question 4

How is asset depletion different from a stated income loan?

Accepted Answer

Asset depletion requires full documentation of your assets. You're not stating income — you're converting verified assets into a calculated income figure.

Question 5

Will my rate be higher than a conventional loan?

Accepted Answer

Yes. Asset depletion is a non-QM product, so rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 6

What assets don't count toward qualification?

Accepted Answer

Home equity, business accounts, and non-liquid assets are typically excluded. Lenders want assets you can access within a short timeframe.

Asset Depletion Loans in San Juan Bautista, CA