Question 1

How much in assets do I need for a Hillsborough home?

Accepted Answer

The calculation divides your assets by 360 months to create qualifying income. Higher home prices require proportionally larger asset bases to meet debt-to-income requirements. Rates vary by borrower profile and market conditions.

Question 2

Can I use retirement accounts for asset depletion loans?

Accepted Answer

Most lenders accept 401(k)s and IRAs with percentage reductions applied. The discount accounts for early withdrawal penalties and tax implications, typically ranging from 30-40% of the account value.

Question 3

What interest rates apply to asset depletion mortgages?

Accepted Answer

Non-QM loans carry higher rates than conventional mortgages due to portfolio lending risk. Your rate depends on credit score, down payment size, and asset strength. Rates vary by borrower profile and market conditions.

Question 4

Do I need to liquidate assets to qualify?

Accepted Answer

No liquidation required for qualification. Lenders evaluate your existing asset balances to calculate qualifying income. You only need accessible funds for your down payment and reserves.

Question 5

How long does asset depletion loan approval take?

Accepted Answer

Processing typically spans 30-45 days from application to closing. Verification of multiple asset accounts can extend timelines compared to conventional loans, especially with complex investment portfolios.

Asset Depletion Loans in Hillsborough: Qualify Using Your Investment Portfolio