Question 1

What asset balance do I need to buy a home in Millbrae?

Accepted Answer

It depends on the purchase price and your other debts. As a general example, $2 million in qualified assets generates roughly $5,556 monthly qualifying income under standard 360-month calculations.

Question 2

Can I use my 401(k) for asset depletion qualification?

Accepted Answer

Yes, most lenders include 401(k), IRA, and other retirement accounts in asset depletion calculations. They typically apply the same formulas used for non-retirement investment accounts.

Question 3

Do I need to liquidate my investments to get this loan?

Accepted Answer

No, asset depletion loans let you keep investments intact. Lenders calculate qualifying income from your balances without requiring you to sell positions or withdraw funds.

Question 4

How do interest rates compare to conventional mortgages?

Accepted Answer

Asset depletion loans typically carry higher rates than conventional financing due to Non-QM risk factors. Rates vary by borrower profile and market conditions based on credit score, loan amount, and asset strength.

Question 5

What documentation do lenders require for asset verification?

Accepted Answer

Expect to provide six months of statements for all qualifying accounts. Lenders verify account ownership, consistent balances, and asset type eligibility through this documentation review.

Asset Depletion Loans in Millbrae: Finance Property Using Your Investment Portfolio