Loading
Loading
Foster City attracts retirees, early tech retirees, and investors who hold substantial assets but show little taxable income. Traditional lenders reject these borrowers despite million-dollar portfolios.
Asset depletion loans convert liquid holdings into qualifying income using a formula that divides total assets by the loan term. A $2 million portfolio becomes $66,667 annual income on a 30-year mortgage.
This loan type works particularly well in Foster City where buyers often have stock compensation, IPO windfalls, or retirement accounts that don't generate W-2 income.
Asset Depletion Loans in Foster City
Most lenders require $500,000 minimum in liquid assets after down payment and reserves. Credit scores typically need to hit 660-680, though some programs accept 620 with compensating factors.
Eligible assets include checking, savings, stocks, bonds, mutual funds, and retirement accounts. Some lenders now accept verified cryptocurrency holdings at discounted values.
Expect to leave 6-12 months of reserves untouched after closing. Lenders won't count real estate equity, business assets, or unvested stock options toward qualification.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Foster City.
Foster City attracts retirees, early tech retirees, and investors who hold substantial assets but show little taxable income. Traditional lenders reject these borrowers despite million-dollar portfolios.
Asset depletion loans convert liquid holdings into qualifying income using a formula that divides total assets by the loan term. A $2 million portfolio becomes $66,667 annual income on a 30-year mortgage.
This loan type works particularly well in Foster City where buyers often have stock compensation, IPO windfalls, or retirement accounts that don't generate W-2 income.
Only non-QM lenders offer asset depletion programs. Each uses different depletion formulas and asset haircuts, which dramatically affects how much you qualify for.
One lender might apply a 30% discount to stock holdings while another takes 50%. That difference turns $1 million into either $700,000 or $500,000 of qualifying assets.
Recent lender innovations let borrowers include cryptocurrency after third-party verification, though expect 40-60% haircuts on crypto values as of February 2026.
I run asset depletion scenarios across six lenders minimum. The lender offering the best rate rarely offers the highest asset qualification, so we optimize for both.
Foster City buyers often hold RSUs, options, and concentrated stock positions. Lenders treat these differently—some require vesting schedules, others won't count unvested shares at all.
The biggest mistake is liquidating assets before talking to a broker. Keep everything intact until we determine which account types get the best treatment from which lenders.
Bank statement loans work better if you have business income but want to avoid full tax returns. Asset depletion wins when you have no income documentation at all.
DSCR loans make sense for investment properties where rent covers the mortgage. Foreign national loans fit non-residents, but asset depletion often gives U.S. citizens better rates.
The choice depends on your asset composition and how much income the depletion formula generates versus other documentation methods.
Foster City's lagoon properties and waterfront homes often exceed conforming limits, requiring jumbo asset depletion programs with higher minimums. Expect $750,000-$1 million asset requirements.
Many buyers here are former tech executives with complex asset structures—options, deferred comp, and restricted stock. Finding a lender who understands these instruments matters more than rate.
HOA fees in Foster City run $400-$800 monthly depending on location. Lenders include these in debt ratios, which reduces how much the asset depletion formula can support.
Checking, savings, stocks, bonds, mutual funds, and retirement accounts all qualify. Some lenders now accept verified cryptocurrency with significant discounts applied.
Total eligible assets divided by loan term in months equals monthly qualifying income. A $1.8 million portfolio on a 30-year loan generates $5,000 monthly income.
Yes, lenders count IRA and 401(k) balances toward qualification without requiring withdrawals. You don't actually touch the retirement funds to qualify.
Most lenders require 660-680 minimum. Some programs accept 620 with larger asset reserves or higher down payments as compensating factors.
Asset depletion rates run 0.5-1.5% higher than conventional. The premium reflects non-QM risk and the lack of traditional income verification.
Minimum 20% down for most programs, though 25-30% down improves rates and reduces lender risk overlays. Larger down payments also preserve more assets for qualification.