Question 1

What assets count toward qualification?

Accepted Answer

Cash, checking, savings, stocks, bonds, and vested retirement accounts typically qualify. Illiquid assets like real estate equity or business ownership don't count.

Question 2

How does the income calculation work?

Accepted Answer

Lenders divide your eligible asset total by a set number of months to create a monthly income figure. That figure is used to calculate your debt-to-income ratio.

Question 3

Can I use a 401k or IRA for asset depletion?

Accepted Answer

Yes, but most lenders apply a haircut — often 70% of the balance — to account for early withdrawal penalties. Rules vary by lender.

Question 4

Is asset depletion available for SF condos or co-ops?

Accepted Answer

Condos yes, with standard condo approval requirements. Co-ops are rare in SF and most non-QM lenders won't touch them.

Question 5

How are asset depletion rates compared to conventional?

Accepted Answer

Non-QM products like asset depletion carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 6

Do assets need to stay in the account after closing?

Accepted Answer

Most lenders require reserves after closing — often 12 months of payments. Depleting your account at close can kill the deal.

Asset Depletion Loans in San Francisco