Question 1

Can I use my 401(k) to qualify without withdrawing funds?

Accepted Answer

Yes, lenders count retirement accounts without requiring withdrawals. They calculate a monthly income figure by dividing the balance by 360 months for qualification purposes.

Question 2

What asset minimum do I need to qualify in Morro Bay?

Accepted Answer

Most lenders want $500k-$1M in liquid assets depending on purchase price. The exact amount depends on your down payment, credit score, and the property's value.

Question 3

Do cryptocurrency holdings count as qualifying assets?

Accepted Answer

Select lenders now accept verified crypto holdings as of early 2026. Expect higher rates and stricter verification requirements compared to traditional assets like stocks or bonds.

Question 4

How do asset depletion rates compare to conventional loans?

Accepted Answer

Expect 1-2% higher rates than conventional mortgages. Non-QM pricing reflects the flexible underwriting, but shopping lenders closes that gap significantly.

Question 5

Can I combine asset depletion with other income sources?

Accepted Answer

Yes, lenders allow you to combine asset depletion income with Social Security, pensions, or rental income. This hybrid approach often strengthens your qualification profile.

Question 6

What happens if my asset values drop during underwriting?

Accepted Answer

Lenders use 70% of stock values to buffer market swings. Small drops won't derail approval, but major portfolio losses could require additional reserves or a larger down payment.

Asset Depletion Loans in Morro Bay: Qualify Using Your Investment Portfolio