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Daly City sits between San Francisco and Peninsula tech corridors where early exits and stock compensation create asset-heavy borrowers. Many qualified buyers here hold substantial portfolios but lack W-2 income after retirement or liquidity events.
Asset depletion loans convert liquid investments into qualifying income without requiring asset liquidation. This matters in San Mateo County where retirees, business owners, and vested equity holders need mortgages but show minimal tax returns.
Asset Depletion Loans in Daly City
Lenders divide your total liquid assets by 360 months to create qualifying income. A $2M portfolio generates roughly $5,500 monthly qualifying income under standard calculations.
Minimum credit score typically sits at 680, though 700+ unlocks better pricing. Most programs require 20-30% down and accept investment accounts, retirement funds, and cash reserves.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Daly City.
Daly City sits between San Francisco and Peninsula tech corridors where early exits and stock compensation create asset-heavy borrowers. Many qualified buyers here hold substantial portfolios but lack W-2 income after retirement or liquidity events.
Asset depletion loans convert liquid investments into qualifying income without requiring asset liquidation. This matters in San Mateo County where retirees, business owners, and vested equity holders need mortgages but show minimal tax returns.
Lenders divide your total liquid assets by 360 months to create qualifying income. A $2M portfolio generates roughly $5,500 monthly qualifying income under standard calculations.
Asset depletion sits in the non-QM space where wholesale lenders dominate retail banks. Portfolio composition matters—stocks and bonds count fully while restricted shares often get discounted.
Rate pricing runs 1-2% above conventional loans as of February 2025. Shopping multiple non-QM lenders becomes critical since each uses different asset calculation methods and rate structures.
Three Daly City scenarios work best: retirees downsizing from Peninsula homes, tech workers after IPO lockup expirations, and business owners who expense aggressively. All have assets but tax returns show minimal income.
Biggest mistake is assuming all assets qualify equally. Illiquid partnerships and non-traded REITs rarely count. Get asset statements reviewed before shopping properties.
Bank statement loans work better for ongoing business income while asset depletion suits one-time liquidity events. Foreign national loans may combine with asset depletion for non-resident buyers holding US investment accounts.
DSCR loans beat asset depletion for investment properties since rental income qualifies directly. Asset depletion makes sense for primary residences where investment portfolios replace employment income.
Daly City properties under $2M hit the sweet spot for asset depletion since most programs cap at $3-4M loan amounts. Proximity to San Francisco means many buyers carry seven-figure portfolios from tech or real estate exits.
San Mateo County assessments and property taxes consume more cash flow than most California markets. Higher carrying costs mean you need larger asset bases to qualify for equivalent loan amounts here.
For a $800K loan you typically need $1.5-2M in liquid assets after down payment. Exact amounts depend on property taxes, insurance, and HOA dues which run higher in San Mateo County.
Yes, if you're age 59½ or older and can access without penalty. Lenders typically apply a 70-80% haircut to account for future tax liability on traditional IRAs and 401(k)s.
Rates run 1-2% higher as of February 2025. A 7% conventional rate means 8-9% on asset depletion. Rates vary by borrower profile and market conditions.
Publicly traded stocks and mutual funds count at full value. Restricted stock typically gets 50-70% valuation. Private company shares rarely qualify until after liquidity events.
Most programs need 20-30% down. Higher down payments improve pricing and approval odds since you're demonstrating deeper reserves beyond qualification assets.
Expect 30-45 days from application to closing. Asset verification takes longer than employment checks since lenders review multiple account statements and investment holdings.