Question 1

How much in assets do I need to qualify?

Accepted Answer

It depends on the loan amount and lender formula. Most lenders divide assets over 60–84 months. You need enough imputed income to cover your debt-to-income ratio.

Question 2

Can I use my 401k or IRA for this loan?

Accepted Answer

Yes, but lenders typically discount retirement accounts by 30–40%. Only the adjusted balance counts toward your imputed income calculation.

Question 3

Do asset depletion loans have higher rates?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional or FHA loans. Rates vary by borrower profile and market conditions.

Question 4

Is asset depletion available for investment properties in Santa Cruz?

Accepted Answer

Yes. Some non-QM lenders allow asset depletion on investment properties. Guidelines tighten — expect higher down payments and stricter reserve requirements.

Question 5

How long does asset depletion loan approval take?

Accepted Answer

Non-QM loans typically close in 21–30 days. Manual underwriting adds time. Have your asset statements ready and fully seasoned before you apply.

Question 6

What credit score do I need for this loan?

Accepted Answer

Most non-QM lenders want 680 or higher for asset depletion programs. Some go lower with compensating factors like a large down payment or substantial reserves.

Asset Depletion Loans in Santa Cruz, CA