Question 1

What asset amount do I need to qualify in Daly City?

Accepted Answer

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.

Question 2

Do retirement accounts count toward asset depletion income?

Accepted Answer

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.

Question 3

How do rates compare to conventional mortgages?

Accepted Answer

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.

Question 4

Can I use stock portfolios to qualify?

Accepted Answer

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.

Question 5

What down payment do asset depletion loans require?

Accepted Answer

Most programs need 20-30% down. Higher down payments improve pricing and approval odds since you're demonstrating deeper reserves beyond qualification assets.

Question 6

How long does underwriting take for asset depletion loans?

Accepted Answer

Expect 30-45 days from application to closing. Asset verification takes longer than employment checks since lenders review multiple account statements and investment holdings.

Asset Depletion Loans in Daly City: Qualify Using Your Investment Portfolio