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Burlingame draws retirees, tech executives with stock options, and high-net-worth buyers who don't show traditional income. Asset depletion loans let you qualify using liquid holdings — typically investments, savings, and retirement accounts.
This loan type fits the Peninsula market where wealth doesn't always translate to paycheck stubs. Many buyers here hold significant assets but report minimal taxable income.
Lenders divide your liquid assets by 360 months to calculate qualifying income. A borrower with $2 million in verified accounts shows roughly $5,555 monthly income for qualification purposes.
Most programs require 620+ credit and 20-30% down. Not all assets count — retirement accounts usually qualify, but equity in real estate typically doesn't.
Asset depletion lives in the non-QM space. Only specialized lenders offer these programs, and rates run 1-2% above conventional loans as of February 2026.
Documentation matters here. Lenders want two months of statements for each account you're using. Verification delays kill more deals than credit issues.
Most Burlingame buyers exploring asset depletion should first check bank statement programs. If you've got any business income flowing through accounts, that route often gets better terms.
The math works best for borrowers with $1 million+ in liquid assets buying homes under $2 million. Above that ratio, you're typically better off with a jumbo product if you can document any income stream.
Bank statement loans require 12-24 months of business deposits but typically offer lower rates. DSCR loans work if you're buying investment property and rental income covers the payment.
Foreign national programs overlap with asset depletion but add complexity around visa status. If you're a U.S. citizen with assets, this is cleaner.
Burlingame sits in one of California's highest-cost counties. Asset depletion works here because the buyer profile skews toward established wealth rather than high earners.
Peninsula appraisals move fast but be ready for conservative valuations. Lenders get nervous about asset-based loans in markets where prices can swing, so they price accordingly.
Most lenders want $500k minimum, but competitive buyers here typically show $1 million+ to qualify for $800k+ loans. The 360-month calculation means every $360k in assets generates roughly $1k monthly qualifying income.
Yes, but lenders typically discount them 30-40% to account for early withdrawal penalties and taxes. A $1 million IRA might count as $600-700k for qualification purposes.
Some lenders allow it, but DSCR loans usually make more sense for rentals. Asset depletion works best for primary residences where you've got wealth but limited income documentation.
Rates run 1-2% higher as of February 2026. On a $1.5 million loan, that's roughly $1,500-3,000 more monthly. Rates vary by borrower profile and market conditions.
Plan for 2-3 weeks. Lenders verify every account you're using through third-party services. Missing statements or closed accounts add another week minimum.
Asset Depletion Loans in Burlingame