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Redwood City sits in the heart of San Mateo County, where tech wealth often lives in stock options and brokerage accounts rather than W-2s. Asset depletion loans let you qualify using liquid assets — think investment portfolios, retirement accounts, or cash holdings.
This loan type gained traction as of February 2026 with new non-QM products accepting verified crypto holdings alongside traditional assets. Lenders convert your total liquid net worth into a monthly income figure to measure affordability.
Asset Depletion Loans in Redwood City
You need at least $500,000 in liquid assets for most programs, though some lenders start at $250,000. Credit scores typically need to hit 680 minimum. Lenders divide your total assets by 360 months to calculate your qualifying income.
The formula is simple: $1 million in assets becomes roughly $2,778 monthly income. You still need reserves — usually 12 to 24 months of mortgage payments kept liquid after closing.
About 40 of our 200+ wholesale lenders offer asset depletion programs. Each has different rules on what counts as liquid — some exclude IRAs, others cap the percentage they'll use from retirement accounts.
Newer programs now accept cryptocurrency if held on verified exchanges for at least 12 months. Documentation requirements are strict: 60 days of statements showing consistent balances, third-party verification for crypto holdings.
Most Redwood City clients using asset depletion are either tech executives with RSU concentration or retirees with seven-figure portfolios. The biggest mistake is thinking all assets count equally — lenders often haircut retirement accounts by 30% to 40%.
Rates run 1% to 2% higher than conventional loans. If you have steady 1099 income or rental properties generating cash flow, a bank statement or DSCR loan usually pencils out better.
Bank statement loans work if you run income through a business but don't want to show tax returns. Foreign national loans suit non-residents with US assets. DSCR loans use rental income only — no personal finances involved.
Asset depletion fits when you have wealth but no reportable income stream. If you're pulling portfolio distributions or living off investments, this is often the cleanest path.
Redwood City's proximity to Stanford and Sand Hill Road means many borrowers hold venture-backed equity that hasn't vested. Lenders won't count unvested shares. You need liquid, accessible assets.
San Mateo County property taxes run around 1.2% annually. Factor that into your reserve calculations — lenders want to see those months of payments include taxes and insurance, not just principal and interest.
Most lenders accept it but discount the balance by 30% to 40% due to withdrawal penalties. IRAs and taxable accounts get better treatment.
No. Lenders verify balances but don't require you to sell. You just need proof the assets exist and are accessible.
Select lenders accept verified holdings on major exchanges if you've held them 12+ months. Expect documentation and third-party verification.
Plan for 1% to 2% above conventional rates. Your credit score and asset depth affect final pricing. Rates vary by borrower profile and market conditions.
Yes. Some lenders let you stack W-2, rental income, or Social Security alongside asset-based qualifying income for stronger approval.