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Pismo Beach attracts retirees and high-net-worth buyers with significant investment accounts but minimal W-2 income. Asset depletion loans let you qualify based on liquid holdings, not employment history.
This coastal market sees plenty of portfolio-heavy buyers—stock traders, early retirees, trust fund recipients. Traditional income verification doesn't capture their financial strength.
Asset Depletion Loans in Pismo Beach
Lenders divide your liquid assets by 360 months to create a qualifying income. A $2 million portfolio generates roughly $5,500 monthly income for qualification purposes.
You typically need $500K minimum in verifiable assets. Most programs require 20-30% down and credit scores above 680. Assets must remain liquid—no real estate equity or business interests.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Pismo Beach.
Pismo Beach attracts retirees and high-net-worth buyers with significant investment accounts but minimal W-2 income. Asset depletion loans let you qualify based on liquid holdings, not employment history.
This coastal market sees plenty of portfolio-heavy buyers—stock traders, early retirees, trust fund recipients. Traditional income verification doesn't capture their financial strength.
Lenders divide your liquid assets by 360 months to create a qualifying income. A $2 million portfolio generates roughly $5,500 monthly income for qualification purposes.
Few lenders offer true asset depletion programs. Most specialize in non-QM lending and require detailed asset documentation—90 days of statements minimum.
Some lenders now accept cryptocurrency holdings for qualification, expanding asset types beyond traditional stocks and bonds. Digital asset valuations get discounted 30-50% for risk adjustment.
Asset depletion works best when you have concentrated wealth in one account—like a $3 million IRA—rather than scattered holdings. Clean documentation matters more than you'd think.
I've closed these for retired executives in Pismo Beach who sold companies and live off investments. They couldn't qualify conventionally despite having $5 million in the bank.
Bank statement loans work better if you run a business and show consistent deposits. Asset depletion shines when your wealth sits idle in investment accounts.
DSCR loans make sense for rental properties. But for a Pismo Beach primary residence with no rental income, asset depletion beats trying to manipulate tax returns.
Pismo Beach home prices demand substantial down payments. Asset depletion borrowers typically bring $200K-$400K down, which lenders view favorably for coastal property risk.
Many buyers here hold tech stock portfolios or inherited wealth. Lenders understand San Luis Obispo County's affluent retiree demographic and price accordingly.
Stocks, bonds, mutual funds, money market accounts, and retirement accounts qualify. Some lenders now accept cryptocurrency with valuation discounts. Real estate equity and business interests don't count.
Yes. Lenders use the account balance to calculate qualifying income without requiring withdrawals. You keep your retirement savings intact while qualifying for the mortgage.
With 25% down, you'd need $250K plus roughly $1.5 million in liquid assets to generate qualifying income. Exact requirements depend on rates, HOA fees, and property taxes.
Yes. Expect rates 1-2% higher than conventional loans as of February 2026. Rates vary by borrower profile and market conditions.
Most lenders allow combining asset depletion with Social Security, pensions, or investment income. This can reduce the asset balance required for qualification.