Question 1

What types of assets qualify for depletion calculations in Del Mar?

Accepted Answer

Brokerage accounts, stocks, bonds, mutual funds, and certain IRAs typically qualify. Lenders generally require assets remain liquid and exclude retirement accounts with early withdrawal penalties from calculations.

Question 2

Can I use asset depletion for a Del Mar investment property?

Accepted Answer

Yes, asset depletion works for both primary residences and investment properties. However, DSCR loans might offer better terms for rentals since they use property income rather than depleting your personal assets.

Question 3

How much in assets do I need after my Del Mar down payment?

Accepted Answer

Most programs require at least $500,000 in liquid assets remaining after your down payment and closing costs. Higher asset levels generate more qualifying income and may improve your rate options.

Question 4

Do asset depletion loans require tax returns?

Accepted Answer

Most programs request tax returns to verify reported income doesn't contradict your stated financial situation. The returns provide context but aren't the primary qualification source like traditional mortgages.

Question 5

What credit score do I need for asset depletion in Del Mar?

Accepted Answer

Most lenders require minimum credit scores of 680, though some programs accept 660 or slightly lower with compensating factors like larger down payments or higher asset reserves.

Asset Depletion Loans in Del Mar: Qualify Using Your Investment Portfolio