Question 1

What counts as qualifying assets for these loans?

Accepted Answer

Stocks, bonds, mutual funds, savings accounts, money market accounts, and retirement accounts all qualify. Some lenders now accept verified cryptocurrency holdings. Real estate equity doesn't count.

Question 2

How do lenders calculate my qualifying income from assets?

Accepted Answer

They divide your total verified liquid assets by a specified number of months, typically 60-360. A $600,000 portfolio divided by 120 months creates $5,000 monthly qualifying income.

Question 3

Can I use retirement accounts under age 59.5?

Accepted Answer

Yes, but lenders apply a 30-40% discount to account for early withdrawal penalties and taxes. A $500,000 IRA might count as $300,000-350,000 in qualifying assets.

Question 4

What down payment do I need in South San Francisco?

Accepted Answer

Expect 20-30% down depending on credit score and asset type. Higher leveraged positions or volatile assets may push you toward the 30% requirement.

Question 5

How long does asset verification take?

Accepted Answer

Plan for 1-2 weeks. Lenders need current brokerage statements and verification letters. Crypto assets require additional authentication steps through specialized verification platforms.

Question 6

Do I still need reserves after closing?

Accepted Answer

Yes. Most lenders require 12-24 months of mortgage payment reserves remaining after you cover down payment and closing costs. Your qualifying assets must exceed what you're spending.

Asset Depletion Loans in South San Francisco – Qualify With Liquid Assets, Not Paychecks