Question 1

What assets qualify for asset depletion in Monte Sereno?

Accepted Answer

Checking, savings, brokerage, and vested retirement accounts typically qualify. Illiquid assets like real estate equity or restricted stock usually do not.

Question 2

Can I use this loan for a primary residence?

Accepted Answer

Yes. Asset depletion works for primary homes and second homes. It is not limited to investment properties.

Question 3

How is my qualifying income calculated?

Accepted Answer

Lenders divide eligible assets by a set number of months — often 60 to 84. That monthly figure is treated as your income for qualification.

Question 4

Do I need to be retired to use asset depletion?

Accepted Answer

No. Retirees are common borrowers, but self-employed individuals and executives with low taxable income also use this program regularly.

Question 5

How does this differ from a conventional jumbo loan?

Accepted Answer

Conventional jumbo loans require verifiable income — tax returns, W-2s, or pay stubs. Asset depletion has no income requirement beyond your asset balance.

Question 6

Are asset depletion rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

Asset Depletion Loans in Monte Sereno, CA