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Asset Depletion Loans in Colma
Can I use my 401(k) to qualify for an Asset Depletion Loan?
Yes. Lenders calculate your monthly qualifying income by dividing your accessible 401(k) balance by 360 months. You don't withdraw the money — it simply counts as income on your application.
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Colma sits in San Mateo County, where the median household income is $156,000. Downtown San Mateo's Bespoke mixed-use development signals neighborhood investment and long-term stability for buyers here.
Asset Depletion Loans let you qualify using retirement accounts and home equity instead of cash reserves. This opens homeownership to buyers who've built wealth but lack liquid savings.
620+
Minimum FICO
3% to 5%
Down Payment Range
45–60 days
Typical Underwriting
$156,000
County Median Income
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Asset Depletion Loans typically require a 620+ FICO score and allow down payments as low as 3% to 5%. Your retirement accounts and home equity count toward qualifying income, not just W-2 wages.
The county's $156,000 median household income supports purchases in the $600,000 to $700,000 range comfortably. Lenders calculate your monthly income by dividing accessible assets by 360 months.
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 San Mateo County, where the median household income is $156,000. Downtown San Mateo's Bespoke mixed-use development signals neighborhood investment and long-term stability for buyers here.
Asset Depletion Loans let you qualify using retirement accounts and home equity instead of cash reserves. This opens homeownership to buyers who've built wealth but lack liquid savings.
Asset Depletion Loans typically require a 620+ FICO score and allow down payments as low as 3% to 5%. Your retirement accounts and home equity count toward qualifying income, not just W-2 wages.
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 less common than conventional or FHA programs, so fewer lenders offer them. Brokers typically source these through portfolio lenders or specialized mortgage banks.
Underwriting takes longer because the lender must verify asset statements and calculate depletion schedules. Most lenders require recent bank statements, brokerage statements, and retirement account documentation.
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Asset Depletion Loans make sense for buyers in Colma who've saved aggressively in retirement accounts but lack down-payment cash. If you have $300,000 in a 401(k) and $150,000 in home equity, this program opens doors conventional lending won't.
They don't work well if you're a first-time buyer with no home equity or if your assets are illiquid. Stick with FHA or conventional if you have cash reserves — they close faster and carry lower rates.
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Asset Depletion Loans versus conventional financing: conventional requires liquid down-payment cash upfront, while asset depletion lets you use retirement funds and equity. The tradeoff is longer underwriting and fewer lender options.
FHA is faster and more widely available, but it requires mortgage insurance for life if you put down less than 10%. Asset Depletion avoids mortgage insurance entirely, which saves money over the loan term.
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San Mateo County school districts placed bond measures on the June ballot to boost funding. That kind of infrastructure investment signals stable neighborhoods and long-term property value support.
Michelin added seven Bay Area restaurants to its California guide, reflecting the region's culinary growth. Proximity to San Francisco dining and culture makes Colma attractive to buyers who value lifestyle alongside homeownership.
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Asset Depletion Loans remain a niche product in California, offered primarily by portfolio lenders and specialized mortgage banks. Conventional and FHA loans dominate the market, so finding an Asset Depletion lender requires broker expertise.
Demand for these loans has grown among older buyers and those with significant retirement savings but limited liquid cash. San Mateo County's high median income and strong home equity make it a natural market for this program.
FAQ
Yes. Lenders calculate your monthly qualifying income by dividing your accessible 401(k) balance by 360 months. You don't withdraw the money — it simply counts as income on your application.
Most lenders require a 620+ FICO score. Some portfolio lenders go lower, but expect tighter terms. Call to confirm your specific lender's floor.
Down payments typically range from 3% to 5%. Your retirement accounts and home equity substitute for liquid cash reserves, so you're not required to have savings in the bank.
Plan for 45 to 60 days. Lenders must verify asset statements and calculate depletion schedules, which takes longer than conventional or FHA underwriting.
No. Because you're using assets to qualify, not just income, mortgage insurance is not required. This saves you money compared to FHA loans with down payments under 10%.
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 Mateo County
Our team of licensed mortgage brokers works San Mateo 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 Mateo 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.