Question 1

What counts as liquid assets for qualification?

Accepted Answer

Checking, savings, money market accounts, stocks, bonds, and mutual funds qualify. Retirement accounts like 401(k)s and IRAs count with a 30% reduction for tax liability.

Question 2

Can I use my 401(k) without withdrawing the money?

Accepted Answer

Yes. Lenders calculate income from the account balance without requiring withdrawal. The balance stays invested while you use it for qualification purposes only.

Question 3

How much income does $1 million in assets generate?

Accepted Answer

Dividing $1 million by 360 months equals $2,778 monthly qualifying income. This amount gets used in your debt-to-income ratio calculation for loan approval.

Question 4

Do I need to show where my assets came from?

Accepted Answer

Lenders require 60 days of statements showing stable balances. Large recent deposits need a paper trail. Inherited funds or gifts require documentation showing legitimate sources.

Question 5

What happens if my portfolio value drops during underwriting?

Accepted Answer

Lenders use the balance at application. Small fluctuations don't matter. A major drop might require updated statements, which could affect your qualifying income calculation.

Asset Depletion Loans in Belmont: Qualify Using Your Portfolio, Not Your Paystubs