Question 1

What assets count toward qualification?

Accepted Answer

Stocks, bonds, mutual funds, 401(k)s, IRAs, money market accounts, and CDs all qualify. Some lenders now accept verified cryptocurrency. Real estate equity doesn't count.

Question 2

Do I need to liquidate my investments?

Accepted Answer

No. Lenders calculate theoretical income by dividing your assets by the loan term. Your investments stay invested throughout the loan.

Question 3

How much in assets do I need?

Accepted Answer

Most deals require $500K minimum after down payment and reserves. Higher loan amounts need proportionally more assets to generate qualifying income.

Question 4

Can I use retirement accounts?

Accepted Answer

Yes. 401(k)s and IRAs count at full value. Lenders don't penalize for early withdrawal concerns since you're not actually withdrawing.

Question 5

What if I have both employment and assets?

Accepted Answer

You can combine both. Some borrowers use employment for base qualification and assets to boost approval amounts. We model both scenarios.

Question 6

How does cryptocurrency work for qualification?

Accepted Answer

Newer lenders accept verified crypto holdings. They require third-party valuation and often apply conservative loan-to-value ratios. Not all lenders offer this yet.

Asset Depletion Loans in Watsonville: Qualify Using Your Investment Portfolio