Question 1

What assets qualify for asset depletion loans in Half Moon Bay?

Accepted Answer

Checking, savings, stocks, bonds, mutual funds, and retirement accounts count. Real estate equity, business interests, and illiquid holdings don't qualify. You need documented balances spanning 2-3 months.

Question 2

How do lenders calculate income from my assets?

Accepted Answer

They divide your total qualifying assets by the loan term in months, typically 240-360 months. A $1.2 million portfolio divided by 360 months creates $3,333 monthly qualifying income.

Question 3

Can I use retirement accounts for asset depletion qualification?

Accepted Answer

Yes, but lenders may apply age-based discounts if you're under 59½ due to potential early withdrawal penalties. IRAs and 401(k)s both qualify with proper documentation.

Question 4

What credit score do I need for asset depletion financing?

Accepted Answer

Most lenders require minimum 680 credit scores, with better rates starting at 700. Higher scores and larger down payments significantly improve your rate and terms.

Question 5

How much should I expect to put down in Half Moon Bay?

Accepted Answer

Primary residences typically require 20% down, while second homes and investment properties need 25-30%. Larger down payments improve rates and may lower reserve requirements.

Asset Depletion Loans in Half Moon Bay: Qualify With Your Portfolio, Not Paychecks