Question 1

What assets qualify for asset depletion in Morgan Hill?

Accepted Answer

Cash, checking, savings, and brokerage accounts typically qualify at full value. Retirement accounts may count at 60-70% depending on the lender.

Question 2

Can I use an asset depletion loan for a jumbo purchase?

Accepted Answer

Yes. Many lenders offer asset depletion on jumbo amounts. Expect stricter reserve requirements and higher credit score thresholds.

Question 3

Do I need to liquidate my assets to qualify?

Accepted Answer

No. Lenders use your asset balance to calculate income. You keep the assets — they just verify the balance exists.

Question 4

How is my qualifying income calculated?

Accepted Answer

Lenders divide eligible assets by the loan term in months, often 360. That number becomes your monthly qualifying income for underwriting.

Question 5

Is asset depletion available for second homes in Morgan Hill?

Accepted Answer

Yes. Second home purchases qualify. Rates vary by borrower profile and market conditions, and down payment requirements may be higher than on a primary residence.

Question 6

Why can't I just go to my bank for this loan?

Accepted Answer

Asset depletion is a non-QM product. Most retail banks don't offer it. A wholesale broker has access to lenders who specialize in this program.

Asset Depletion Loans in Morgan Hill, CA