Question 1

What assets qualify for depletion calculations?

Accepted Answer

Most lenders accept checking, savings, stocks, bonds, and mutual funds. Some count retirement accounts with age-based penalties. A few now accept verified cryptocurrency holdings.

Question 2

How do lenders calculate my qualifying income?

Accepted Answer

They divide your total liquid assets by a depletion period, usually 60-360 months. Shorter periods create higher monthly income but require more assets to qualify.

Question 3

Can I use retirement accounts if I'm under 60?

Accepted Answer

Yes, but lenders typically reduce the value by 30-40% to account for early withdrawal penalties. The exact haircut varies by lender and account type.

Question 4

Do I still need reserves after closing?

Accepted Answer

Absolutely. Most programs require 6-12 months of reserves beyond the assets used for income calculation. Higher loan amounts demand larger reserves.

Question 5

How does this compare to selling assets and showing cash income?

Accepted Answer

Asset depletion avoids triggering capital gains taxes and preserves your investment positions. You keep your portfolio intact while still qualifying for the mortgage.

Asset Depletion Loans in San Mateo: Qualify with Your Portfolio, Not Your Paycheck