Question 1

What liquid assets qualify for asset depletion loans?

Accepted Answer

Checking accounts, savings, stocks, bonds, and mutual funds work. IRAs and 401(k)s qualify but face 30-40% penalties in the income calculation, reducing their value significantly.

Question 2

How do lenders calculate my qualifying income from assets?

Accepted Answer

Most divide your total liquid assets by 360 months. A $900,000 portfolio becomes $2,500 monthly qualifying income under standard 30-year calculations.

Question 3

Can I use asset depletion for a second home in Grover Beach?

Accepted Answer

Yes, this loan works for primary homes, second homes, and investment properties. Expect slightly higher rates and down payments for non-primary residences.

Question 4

What credit score do I need for asset depletion financing?

Accepted Answer

Minimum scores start at 660, but 700+ delivers better rates. Higher credit offsets the non-QM risk premium lenders price into these loans.

Question 5

How does asset depletion compare to bank statement loans?

Accepted Answer

Asset depletion uses savings; bank statement uses deposits. If you show $10,000+ monthly deposits, bank statement typically costs less than depleting assets.

Asset Depletion Loans in Grover Beach: Finance Your Home Using Liquid Assets