Question 1

What counts as a liquid asset for this loan?

Accepted Answer

Stocks, bonds, mutual funds, money markets, and verified crypto holdings. Retirement accounts count at 70% of value. Real estate equity doesn't qualify unless it's in a liquid REIT.

Question 2

Can I use assets held in a foreign account?

Accepted Answer

Yes, but you'll need certified translations and third-party verification of the account balance. Some lenders require funds seasoned in a U.S. account for 60 days before closing.

Question 3

How do lenders calculate my qualifying income?

Accepted Answer

They divide total liquid assets by 240 or 360 months. A $1.2M portfolio becomes $3,333 to $5,000 monthly income. Each lender uses different depletion periods.

Question 4

Do I actually have to deplete these assets?

Accepted Answer

No. The term describes how lenders calculate income, not a requirement to spend down your portfolio. Your assets stay intact after closing.

Question 5

What if my assets are mostly in retirement accounts?

Accepted Answer

401(k)s and IRAs work but count at 70% of value due to early withdrawal penalties. A $1M IRA qualifies as $700K in assets for income calculation.

Question 6

Can I combine this with other income sources?

Accepted Answer

Yes. Social security, pensions, or rental income can supplement your asset-based qualification. Lenders add all sources together to meet debt-to-income requirements.

Asset Depletion Loans in San Bruno: Qualify Using Your Investments, Not Your Paystub