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East Palo Alto sits between Stanford wealth and Silicon Valley liquidity. Many residents here hold equity comp, crypto, or retirement accounts but limited W-2 income.
Asset depletion loans let you qualify using those holdings. Lenders divide liquid assets by 360 months to calculate monthly income. No pay stubs required.
This works well for early retirees, stock-heavy tech workers, and foreign nationals with U.S. assets. Some lenders now accept verified crypto holdings as qualifying assets.
Asset Depletion Loans in East Palo Alto
Most lenders require 620+ credit and enough liquid assets to cover the loan. If you need $800k, expect to show $2-3M in qualifying accounts.
Accepted assets include brokerage accounts, 401(k)s, IRAs, and cash reserves. Some programs now allow cryptocurrency with third-party verification.
Down payment starts at 20% for primary homes, 25% for second homes, 30% for investment properties. Reserves depend on asset levels and credit profile.
Asset depletion sits in the non-QM space, which expanded significantly in 2025-26. Not all brokers work with these programs despite growing demand.
We access 200+ wholesale lenders including specialists who handle retirement accounts, foreign assets, and alternative holdings. Rate overlays vary widely.
Some lenders cap asset depletion at $2M loans, others go to $4M+. Documentation requirements differ — one might need 90 days of statements, another wants 60.
Asset depletion makes sense when liquid holdings exceed three times the loan amount. Below that ratio, bank statement or 1099 loans often price better.
Watch for penalty clauses on retirement account withdrawals. We structure deals to avoid triggering early distribution fees during qualification calculations.
East Palo Alto borrowers often combine this with interest-only options to preserve capital. Rates run 1-2% above conventional but approval odds are higher.
Bank statement loans suit business owners with revenue flowing through accounts. Asset depletion works better for investors living off holdings.
DSCR loans target rental property buyers using property income. Foreign national programs serve non-residents. Asset depletion fits U.S. residents with wealth but no paycheck.
If you hold both business accounts and investment portfolios, we'll model both routes. The cheaper option usually depends on your expense ratios.
East Palo Alto home prices reflect Bay Area pressure even without Palo Alto's premium. Most deals here run $800k-$1.5M, requiring $2.4M-$4.5M in assets.
Many buyers here are Stanford faculty, tech contractors, or families pooling generational wealth. Asset depletion handles complex profiles conventional lenders reject.
Property taxes and insurance costs affect debt ratios. We factor those into asset calculations upfront so you know the real monthly burn before committing.
Stocks, bonds, mutual funds, money markets, IRAs, 401(k)s, and verified crypto holdings. Primary residence equity typically excluded.
Select lenders now accept crypto with third-party verification services that confirm balances and ownership. Documentation standards emerged in early 2026.
Yes. Many borrowers layer asset depletion with part-time W-2, rental income, or social security to improve debt ratios and lower rates.
Lenders use the lower of initial or final statement values. Market drops can delay closing if assets fall below required thresholds.
No. Assets stay invested. Lenders just verify you own them and could theoretically draw income from them over 30 years.