Question 1

What types of assets count toward qualification?

Accepted Answer

Liquid assets include checking, savings, money market accounts, stocks, bonds, mutual funds, and retirement accounts like IRAs and 401(k)s. Some lenders discount retirement funds by 30-40% due to early withdrawal penalties.

Question 2

How much do I need in assets to qualify in San Carlos?

Accepted Answer

Most programs require $500,000 minimum in qualifying assets, though higher-priced San Carlos properties often need $1 million or more. Your exact requirement depends on purchase price, down payment, and the lender's depletion calculation.

Question 3

Can I use assets for both down payment and income qualification?

Accepted Answer

Yes, but lenders verify sufficient reserves remain after closing. You need enough assets to cover your down payment, closing costs, and still maintain the balance used for income calculation plus required reserves.

Question 4

Do interest rates differ from conventional loans?

Accepted Answer

Asset depletion loans typically carry higher rates than conventional programs due to their non-QM structure. Rates vary by borrower profile and market conditions but expect 1-3% above conventional pricing.

Question 5

How long does underwriting take for asset-based loans?

Accepted Answer

Processing typically takes 30-45 days, similar to conventional loans. The timeline depends on how quickly you provide complete asset documentation and whether any accounts need additional verification or sourcing.

Asset Depletion Loans in San Carlos: Qualify With Your Portfolio, Not Your Paystub