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San Pablo homebuyers with substantial liquid assets but irregular income face challenges with traditional mortgages. Asset depletion loans solve this by treating your investment accounts as monthly income streams.
This program works well for retirees, early-retirement buyers, and investors with concentrated wealth in stocks, bonds, or cash accounts. Lenders calculate qualifying income by dividing total liquid assets by 360 months.
Asset Depletion Loans in San Pablo
Most lenders require $500,000+ in liquid assets and credit scores above 680. Acceptable assets include stocks, bonds, mutual funds, money market accounts, and retirement accounts like 401(k)s or IRAs.
You'll typically need 20-30% down payment and cash reserves covering 6-12 months of mortgage payments. Real estate and business equity don't count toward the asset calculation—only liquid holdings.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in San Pablo.
San Pablo homebuyers with substantial liquid assets but irregular income face challenges with traditional mortgages. Asset depletion loans solve this by treating your investment accounts as monthly income streams.
This program works well for retirees, early-retirement buyers, and investors with concentrated wealth in stocks, bonds, or cash accounts. Lenders calculate qualifying income by dividing total liquid assets by 360 months.
Most lenders require $500,000+ in liquid assets and credit scores above 680. Acceptable assets include stocks, bonds, mutual funds, money market accounts, and retirement accounts like 401(k)s or IRAs.
Asset depletion pricing runs 1-2% higher than conventional rates because this is a non-QM product. Rates vary by borrower profile and market conditions, with better pricing for larger asset portfolios and higher credit scores.
Few banks offer this program—most asset depletion lenders are specialty finance companies. We shop rates across 15+ non-QM lenders who handle these transactions regularly in Contra Costa County.
The biggest mistake we see is buyers liquidating investments to show bank deposits instead of using asset depletion. You keep your portfolio invested and avoid capital gains taxes while still qualifying for the mortgage.
Timing matters—apply while your portfolio is strong. A market dip during underwriting can reduce your calculated income and affect approval. Most lenders use a 30-day average of account balances.
Bank statement loans work better if you have steady business deposits but low liquid assets. Asset depletion wins when you're cash-rich but income-light—common after selling a business or during early retirement.
Foreign national loans require different documentation and often larger down payments. DSCR loans only work for investment properties, not San Pablo primary residences like asset depletion does.
San Pablo's lower price points compared to central Contra Costa cities mean asset depletion borrowers often over-qualify. A $1M portfolio creates roughly $2,800 monthly qualifying income—enough for most local properties.
Some buyers use this program to purchase San Pablo rental properties while keeping their investment accounts intact. The strategy works particularly well for multi-unit buildings common in the area.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts like 401(k)s and IRAs all count. Real estate equity and business ownership don't qualify as liquid assets.
Yes—lenders count retirement balances toward the asset total without requiring withdrawals. You keep your portfolio invested and avoid early withdrawal penalties.
For a $400K purchase, you'd need roughly $600K in liquid assets after the 20% down payment. That creates enough qualifying income for most San Pablo properties.
Yes—you can use asset depletion for both primary residences and San Pablo rental properties. Rental income doesn't factor into qualification since assets determine approval.
Lenders typically use a 30-day average, which smooths daily fluctuations. A significant sustained drop can reduce qualifying income and affect loan approval amounts.