Question 1

What assets count toward qualification in Davis?

Accepted Answer

Checking, savings, stocks, bonds, and retirement accounts typically qualify. Illiquid assets like real estate equity do not count.

Question 2

How do lenders calculate income from assets?

Accepted Answer

They divide eligible assets by a set number of months — often 60 to 360. A shorter term means higher qualifying income.

Question 3

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

Accepted Answer

Yes, but many lenders apply a 30–40% discount to retirement accounts. The net eligible amount still counts toward your calculation.

Question 4

Is asset depletion available for Davis investment properties?

Accepted Answer

Some lenders allow it, but DSCR loans are usually better suited for rentals. Asset depletion is strongest for primary and second homes.

Question 5

What credit score do I need for this loan in Yolo County?

Accepted Answer

Most non-QM lenders require at least a 680. Higher scores get better pricing — the rate gap between 680 and 740 is meaningful.

Question 6

Do I need to be retired to use asset depletion?

Accepted Answer

No. Any borrower with strong liquid assets and limited documented income can qualify. Retirees are common applicants, but not the only ones.

Asset Depletion Loans in Davis, CA