Question 1

How much in assets do I need to qualify?

Accepted Answer

Most lenders require $500K minimum, but you'll need more if your desired payment demands higher qualifying income. We calculate the exact amount based on your loan scenario and lender guidelines.

Question 2

Can I use my 401(k) or IRA for asset depletion?

Accepted Answer

Yes, but lenders typically apply a 30% penalty haircut to retirement accounts. A $1M IRA counts as $700K for qualification purposes to account for potential early withdrawal taxes.

Question 3

Do I have to actually liquidate my assets?

Accepted Answer

No, you don't touch your assets. Lenders use them to calculate qualifying income on paper. Your investments stay invested—you're just proving capacity to service the debt.

Question 4

What interest rates should I expect on asset depletion loans?

Accepted Answer

Rates run 1-2% above conventional mortgages. Expect 7-9% range depending on credit, LTV, and property type. Rates vary by borrower profile and market conditions.

Question 5

Can I buy investment property with asset depletion in Apple Valley?

Accepted Answer

Yes, though DSCR loans usually make more sense for rentals. Asset depletion works best for primary residences or second homes where rental income doesn't apply.

Asset Depletion Loans in Apple Valley — Qualify Using Your Savings, Not Paychecks