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Colma sits in one of California's most expensive housing markets. Traditional income verification blocks many qualified buyers who hold substantial assets but lack W-2 income.
Asset depletion loans convert your liquid holdings into qualifying income. If you have $500K in investments, lenders treat a portion as monthly income for approval purposes.
Asset Depletion Loans in Colma
Most lenders divide your liquid assets by 360 months to create qualifying income. A $1 million portfolio generates roughly $2,778 monthly income on paper.
You need at least $500K in verifiable liquid assets after down payment and reserves. Acceptable assets include checking, savings, stocks, bonds, and retirement accounts.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Colma.
Colma sits in one of California's most expensive housing markets. Traditional income verification blocks many qualified buyers who hold substantial assets but lack W-2 income.
Asset depletion loans convert your liquid holdings into qualifying income. If you have $500K in investments, lenders treat a portion as monthly income for approval purposes.
Most lenders divide your liquid assets by 360 months to create qualifying income. A $1 million portfolio generates roughly $2,778 monthly income on paper.
Asset depletion sits in the non-QM space. Fewer than 30 lenders nationwide offer these programs, and most cap loan amounts between $2M and $4M.
Rate premiums run 1-2% above conventional mortgages. You're paying for underwriting flexibility, not credit risk.
I close these loans for retirees, trust fund beneficiaries, and tech workers sitting on RSU wealth. The common thread: substantial net worth but income that doesn't show on tax returns.
Biggest mistake borrowers make is raiding retirement accounts for down payments before talking to a broker. Asset depletion programs count those funds as qualifying income only if they remain invested.
Bank statement loans work better if you have business income flowing through accounts. Asset depletion makes sense when your wealth sits in investments, not operating accounts.
DSCR loans require rental properties to qualify themselves. Asset depletion uses your portfolio regardless of property type or use.
Colma's unique economy centers on cemeteries and commercial property. Residential inventory stays tight, and competition comes from high-net-worth Bay Area buyers.
Proximity to San Francisco makes this market attractive to early retirees and portfolio managers who need asset-based financing. Multiple offers remain common even in slower markets.
Checking, savings, stocks, bonds, mutual funds, and accessible retirement accounts all qualify. Real estate equity and business ownership don't count as liquid assets.
Select lenders accept foreign assets with proper documentation and currency conversion. You'll need English translations of statements and sometimes third-party verification.
Most lenders divide by 360 months, creating $5,556 monthly qualifying income. Some programs use 240 or 480 months depending on asset type and borrower age.
No. Lenders calculate hypothetical income from your portfolio. Assets stay invested unless you need them for down payment or reserves.
Expect 1-2% higher than conventional rates as of February 2026. The premium reflects specialized underwriting, not credit risk or asset quality.