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Asset Depletion Loans in San Marcos
Can I use retirement accounts to qualify for an Asset Depletion Loan?
Yes, but with limits. IRAs and 401(k)s count, but lenders typically apply a 10% penalty haircut. Roth IRAs are often treated more favorably.
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San Marcos is seeing real momentum with county-level housing construction hitting a 40-year high for low-income units. Buyers here typically look at homes under the 2026 conforming limit of $1,104,000.
Asset Depletion Loans let you count savings and investments as qualifying income when W-2 earnings fall short. That matters in San Marcos, where the county's median household income is $102,285.
620
Minimum FICO
10–20%
Down Payment Range
$102,285
County Median Income
17-21 days
Typical Underwriting
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Asset Depletion Loans typically require a 620+ FICO score and 10% to 20% down. Your liquid assets are divided by 240 months to create qualifying income on top of any W-2 earnings.
With the county's median household income at $102,285, a buyer with substantial savings can qualify for a purchase well above that income level. Assets divided by 240 months plus actual income equals your debt-to-income capacity.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in San Marcos.
San Marcos is seeing real momentum with county-level housing construction hitting a 40-year high for low-income units. Buyers here typically look at homes under the 2026 conforming limit of $1,104,000.
Asset Depletion Loans let you count savings and investments as qualifying income when W-2 earnings fall short. That matters in San Marcos, where the county's median household income is $102,285.
Asset Depletion Loans typically require a 620+ FICO score and 10% to 20% down. Your liquid assets are divided by 240 months to create qualifying income on top of any W-2 earnings.
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 offered by a smaller set of lenders than conventional or FHA programs. California brokers have solid access through portfolio lenders and correspondent banks that specialize in asset-based qualification.
Underwriting typically takes 17 to 21 days because the lender must confirm asset ownership. Most lenders require documented proof of assets — bank statements, brokerage accounts, retirement funds.
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Asset Depletion Loans shine for semi-retired buyers in San Marcos who have significant savings but reduced W-2 income. If you're drawing from a brokerage account or living off investment returns, this program lets you tap that wealth.
They don't work well for buyers with minimal liquid assets or strong conventional income. The extra documentation and narrower lender pool make them slower and more expensive than standard conventional loans.
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Versus conventional loans, Asset Depletion accepts lower income but demands higher down payments and liquid reserves. Conventional loans reward steady W-2 income; Asset Depletion rewards savings and documented assets.
Versus FHA, Asset Depletion avoids mortgage insurance at 20% down but FHA accepts lower credit scores. If you have savings but not income, Asset Depletion is your path; if you have income but limited cash, FHA is faster.
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San Diego County just completed its biggest year of low-income housing construction in nearly 40 years. That supply growth supports home values for buyers in San Marcos planning to stay long-term.
The region is also seeing infrastructure investment and transit planning that will shape affordability. For buyers using Asset Depletion Loans — often those with longer time horizons — that stability matters.
FAQ
Yes, but with limits. IRAs and 401(k)s count, but lenders typically apply a 10% penalty haircut. Roth IRAs are often treated more favorably.
Most lenders require a 620 FICO minimum. Scores of 640+ improve your rate and terms. Some portfolio lenders go lower.
10% to 20% down is standard. At 20% or more, you avoid mortgage insurance. Below 20%, PMI applies.
Yes. Self-employed buyers often use Asset Depletion because income documentation is complex. Your assets become the primary qualifying factor.
Plan on 17 to 21 days. Asset verification takes longer than standard income checks. Broker shops in California have streamlined this.
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.
SRK CAPITAL in San Diego County
Our team of licensed mortgage brokers works San Diego 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 San Diego 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.