Question 1

How much in assets do I need to buy a home in Fairfield?

Accepted Answer

Plan for 2-3 times your loan amount in liquid assets. A $500,000 loan typically needs $1-1.5 million depending on the lender's calculation method and your credit score.

Question 2

Can I use my 401k or IRA for asset depletion?

Accepted Answer

Yes, but lenders apply penalties if you're under 59½. Early withdrawal assumptions reduce qualifying power by 30-40% compared to taxable investment accounts.

Question 3

Do cryptocurrency holdings count as qualifying assets?

Accepted Answer

Select non-QM lenders now accept verified crypto as of early 2025. Expect higher haircuts on volatile digital assets compared to traditional stocks and bonds.

Question 4

What interest rates should I expect on asset depletion loans?

Accepted Answer

Rates vary by borrower profile and market conditions. Expect 1-2% above conventional rates, currently ranging 7-9% depending on credit score and down payment size.

Question 5

How long does underwriting take for asset depletion loans?

Accepted Answer

Plan for 45-60 days from application to closing. Asset verification and non-QM underwriting take longer than conventional loans but require less documentation overall.

Question 6

Can I combine different asset types to qualify?

Accepted Answer

Yes, lenders aggregate stocks, bonds, savings, and retirement accounts. Each asset type gets weighted differently based on liquidity and volatility in the calculation.

Asset Depletion Loans in Fairfield: Qualify Using Your Investment Accounts