Question 1

What types of assets qualify for asset depletion loans?

Accepted Answer

Cash, checking, savings, brokerage, and CD accounts typically qualify. Retirement accounts may count at 60-70% of their value.

Question 2

Can a Tulare farmer use this loan for a primary home purchase?

Accepted Answer

Yes. Asset depletion works on primary residences. It's a strong fit for agricultural borrowers with assets but low reported income.

Question 3

Do I need to show any income at all?

Accepted Answer

No employment income is required. Your assets are converted to a monthly income figure that lenders use to qualify you.

Question 4

How much do I need in assets to qualify?

Accepted Answer

It depends on the loan amount. Divide the loan term in months into your assets — the result must cover your debt ratios.

Question 5

Are asset depletion loans more expensive than conventional loans?

Accepted Answer

Yes. Rates run higher than conventional programs. Rates vary by borrower profile and market conditions.

Question 6

Can I use a joint account with my spouse?

Accepted Answer

Most lenders allow joint accounts. The full balance typically counts if both borrowers are on the loan application.

Asset Depletion Loans in Tulare, CA