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Asset Depletion Loans in Novato
Can I use my investment portfolio as income on an Asset Depletion Loan?
Yes. The lender divides your liquid assets by 360 months to calculate monthly qualifying income. That figure is added to any pension or Social Security you receive for underwriting purposes.
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Novato sits in Marin County, where the median household income of $142,785 supports homes well into the $1 million range. A private mountaintop opening to the public for the first time in decades signals renewed investment in the area's outdoor appeal.
Asset Depletion Loans let retirees use savings and investment accounts as qualifying income. This opens doors for buyers whose pensions or Social Security alone wouldn't meet traditional lending thresholds.
620
Minimum FICO
10% to 20%
Down Payment Range
17 to 21 days
Approval Timeline
$142,785
County Median Income
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Asset Depletion Loans require a 620 FICO minimum and typically 10% to 20% down. The lender calculates qualifying income by dividing your liquid assets by 360 months, adding that to any pension or Social Security you receive.
Novato buyers with $500,000 in savings can count roughly $1,389 monthly from asset depletion alone. Combined with modest retirement income, that often bridges the gap to a $1,249,125 purchase.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Novato.
Novato sits in Marin County, where the median household income of $142,785 supports homes well into the $1 million range. A private mountaintop opening to the public for the first time in decades signals renewed investment in the area's outdoor appeal.
Asset Depletion Loans let retirees use savings and investment accounts as qualifying income. This opens doors for buyers whose pensions or Social Security alone wouldn't meet traditional lending thresholds.
Asset Depletion Loans require a 620 FICO minimum and typically 10% to 20% down. The lender calculates qualifying income by dividing your liquid assets by 360 months, adding that to any pension or Social Security you receive.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
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Asset Depletion Loans are specialized products offered by a smaller set of lenders, mostly portfolio lenders and credit unions. Approval timelines run 17 to 21 days because underwriters must verify asset history and calculate the depletion ratio carefully.
Documentation is heavier than conventional loans. Expect to provide 2 to 3 months of bank statements, brokerage statements, and retirement account statements to prove liquid assets.
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Asset Depletion Loans make sense in Novato for retirees with solid savings but modest monthly income. A buyer with $600,000 in investments and $2,000 in Social Security can qualify for a meaningful mortgage that conventional underwriting would reject.
They don't pencil for younger buyers with employment income or for anyone uncomfortable drawing down savings. The asset depletion calculation is permanent—lenders lock in that monthly income figure for the loan's life.
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Conventional loans require documented employment income or pension statements, leaving many retirees stuck. Asset Depletion Loans count your portfolio as income, removing that barrier entirely.
FHA loans also serve retirees but charge mortgage insurance for life if down payment is under 10%. Asset Depletion Loans skip mortgage insurance at any down payment level, a real advantage for buyers planning to stay long-term.
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Bar Auklet, an ambitious new seafood restaurant opening in Point Reyes Station, signals Marin's ongoing culinary investment. Retirees relocating to Novato often cite access to dining and recreation as key to their move.
Marin County Fair runs July 1-5 each summer with nightly fireworks, drawing families and retirees alike. These community anchors matter when you're choosing where to spend your retirement years.
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Asset Depletion Loans remain a niche product in California, offered primarily by portfolio lenders and credit unions. Demand has grown as Baby Boomers retire and seek to relocate to high-cost areas like Marin County.
Volume is modest compared to conventional or FHA lending, but the product fills a real gap. Retirees with substantial savings but limited monthly income represent a growing segment of Novato's buyer pool.
FAQ
Yes. The lender divides your liquid assets by 360 months to calculate monthly qualifying income. That figure is added to any pension or Social Security you receive for underwriting purposes.
Most lenders require a 620 FICO minimum. Some portfolio lenders go as low as 600 with compensating factors like substantial reserves or a co-borrower with stronger credit.
No. These loans skip mortgage insurance regardless of down payment. That's a major advantage over FHA loans, which charge mortgage insurance for life if you put down less than 10%.
Expect 17 to 21 days. Underwriters need extra time to verify your asset history and calculate the depletion ratio. Documentation is heavier than conventional loans.
Typically 10% to 20% down. Some lenders go as low as 5% with strong reserves. The exact requirement depends on your FICO, asset position, and the lender's guidelines.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
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Our team of licensed mortgage brokers works Marin County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Marin County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.