Question 1

Can I use my IRA or 401(k) to qualify for an asset depletion loan?

Accepted Answer

Yes, most lenders accept retirement accounts for asset depletion qualification. Some lenders discount these assets by 30-40% while others count the full value. Early withdrawal penalties don't apply since you're not actually withdrawing funds.

Question 2

How do lenders calculate my income from assets in Oceanside?

Accepted Answer

Lenders divide your total liquid assets by a specific number of months, typically 60 to 360 months. For example, $600,000 in assets divided by 120 months equals $5,000 monthly qualifying income. Each lender uses different divisors.

Question 3

What down payment do I need for an asset depletion loan?

Accepted Answer

Primary residences typically require 20% down, while second homes and investment properties need 25-30% down. Higher down payments may improve your interest rate and increase approval likelihood with certain lenders.

Question 4

Do asset depletion loans work for investment properties in Oceanside?

Accepted Answer

Yes, but requirements become stricter. Expect 25-30% down payments and potentially higher rates. Unlike DSCR loans, the property's rental income doesn't factor into qualification—only your liquid assets matter.

Question 5

How long does asset depletion loan approval take?

Accepted Answer

Timeline typically runs 30-45 days from application to closing. Gathering asset documentation takes longer than standard employment verification. Allow extra time for retirement account statements and portfolio valuations if you need them.

Asset Depletion Loans in Oceanside: Qualify Using Your Wealth, Not Your W-2