Question 1

Can I use my 401(k) to qualify?

Accepted Answer

Yes, but most lenders apply a haircut — typically 60 to 70 cents on the dollar. Early withdrawal penalties also factor into the calculation.

Question 2

Do I need to actually withdraw the assets?

Accepted Answer

No. Lenders calculate income mathematically from your balance. You keep the assets invested — they're just used to establish income on paper.

Question 3

What credit score do I need?

Accepted Answer

Most asset depletion lenders want 680 or higher. Some go down to 660 with a larger asset cushion and lower loan-to-value.

Question 4

Are rates higher than conventional loans?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional rates. Rates vary by borrower profile and market conditions.

Question 5

How long do my assets need to be in my account?

Accepted Answer

Most lenders require 60 days of seasoning. Assets that recently moved from another account may need a paper trail showing the source.

Question 6

Can RSUs count as qualifying assets?

Accepted Answer

Vested RSUs that have settled into your brokerage account usually count. Unvested shares do not — they're not liquid until they vest.

Asset Depletion Loans in Sunnyvale, CA