Question 1

What assets count toward asset depletion qualification in Foster City?

Accepted Answer

Checking, savings, stocks, bonds, mutual funds, and retirement accounts all qualify. Some lenders now accept verified cryptocurrency with significant discounts applied.

Question 2

How do lenders calculate income from my assets?

Accepted Answer

Total eligible assets divided by loan term in months equals monthly qualifying income. A $1.8 million portfolio on a 30-year loan generates $5,000 monthly income.

Question 3

Can I use retirement accounts for asset depletion without penalties?

Accepted Answer

Yes, lenders count IRA and 401(k) balances toward qualification without requiring withdrawals. You don't actually touch the retirement funds to qualify.

Question 4

What credit score do I need for asset depletion loans?

Accepted Answer

Most lenders require 660-680 minimum. Some programs accept 620 with larger asset reserves or higher down payments as compensating factors.

Question 5

Do rates differ between asset depletion and conventional loans?

Accepted Answer

Asset depletion rates run 0.5-1.5% higher than conventional. The premium reflects non-QM risk and the lack of traditional income verification.

Question 6

How much should I expect to put down in Foster City?

Accepted Answer

Minimum 20% down for most programs, though 25-30% down improves rates and reduces lender risk overlays. Larger down payments also preserve more assets for qualification.

Asset Depletion Loans in Foster City: Qualify Using Your Portfolio, Not Your W-2