Question 1

Do I have to actually spend my assets to qualify?

Accepted Answer

No, lenders calculate theoretical income by dividing assets by loan term. You don't withdraw funds unless you choose to. Rates vary by borrower profile and market conditions.

Question 2

Can I use my IRA or 401k for qualification?

Accepted Answer

Yes, but most lenders discount retirement accounts to 70% of value since early withdrawal penalties apply. Taxable accounts count at full value.

Question 3

What happens if my portfolio value drops during underwriting?

Accepted Answer

Lenders use the balance on the statement date you provide. Market fluctuations after that date don't affect your qualification unless you withdraw funds.

Question 4

How do lenders verify cryptocurrency holdings?

Accepted Answer

Select lenders now accept exchange statements showing verified balances. They apply higher haircuts than traditional assets due to volatility concerns.

Question 5

Can I combine asset depletion with other income sources?

Accepted Answer

Yes, lenders add asset-based income to any documented income sources. This helps borrowers who have some W-2 income but not enough to qualify alone.

Asset Depletion Loans in Live Oak: Qualify with Your Portfolio, Not Your Paycheck