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South San Francisco attracts tech employees who hold significant equity compensation, business owners with substantial savings, and retirees with investment portfolios. Traditional income documentation doesn't capture their actual ability to repay a mortgage.
Asset depletion loans convert your liquid holdings into qualifying income. Lenders divide your verified assets by the loan term to create a monthly income figure. This works for borrowers whose bank balances tell a more accurate story than tax returns.
As of February 2026, some non-QM lenders now accept verified cryptocurrency holdings as qualifying assets. This expands options for tech professionals holding digital currencies alongside traditional stocks and savings.
Most lenders require 620-680 minimum credit scores for asset depletion loans. You need verified liquid assets in accounts you control—stocks, mutual funds, savings, money market accounts, and retirement accounts all qualify.
Lenders typically divide your total assets by 60 to 360 months to calculate monthly income. A borrower with $600,000 in verified assets divided by 120 months shows $5,000 monthly income for qualification purposes.
Down payments run 20-30% depending on credit profile and asset type. Lenders want to see assets beyond what's needed for down payment and closing costs—usually 12-24 months of reserves remaining after funding.
Portfolio lenders and non-QM specialists dominate this space. Not all asset types count equally—liquid holdings in taxable brokerage accounts get full value while retirement accounts may face 30-40% haircuts for early withdrawal penalties.
Shop carefully on how lenders calculate your qualifying income. Some divide assets by 60 months, others by 360 months. That calculation directly determines your maximum loan amount and affects which South San Francisco properties you can afford.
Few lenders currently accept cryptocurrency as qualifying assets, but the landscape is shifting. Access to 200+ wholesale lenders means we can match your specific asset mix to lenders who recognize those holdings.
I see asset depletion loans work best for three groups: early retirees under 59.5 with substantial IRAs, tech employees whose RSU grants dwarf their base salary, and business owners who minimize taxable income through write-offs.
The biggest mistake is not accounting for asset volatility. Lenders verify balances at application and again before closing. If your stock portfolio drops 15% between those points, your qualifying income drops too—potentially killing the deal.
South San Francisco pricing means you need serious assets to qualify. A $1.2M purchase with 25% down requires roughly $1.8-2.4M in verified liquid assets depending on which lender's calculation method we use.
Bank statement loans make more sense if you have consistent deposits showing business revenue. Asset depletion works when you have accumulated wealth but irregular or no income documentation.
DSCR loans beat asset depletion for rental property purchases—you qualify on the property's rental income, not your assets. But asset depletion wins for primary residence purchases when traditional income docs don't tell your financial story.
Foreign national loans require asset depletion if you lack U.S. credit history. The programs often overlap—international buyers use both their offshore assets and U.S. accounts for qualification.
South San Francisco sits in the heart of biotech and tech corridor employment. Many buyers here hold concentrated stock positions from employers like Genentech or regional tech companies—exactly the asset profile these loans serve.
Condo and townhome inventory dominates certain neighborhoods. Some lenders restrict asset depletion loans to single-family properties or require higher down payments for condos. Know your property type before shopping rates.
Proximity to SFO and major employers means fast sales cycles. Asset verification takes 1-2 weeks with brokerage statements. Build that timeline into your offer strategy when competing against conventional buyers with faster closing windows.
Stocks, bonds, mutual funds, savings accounts, money market accounts, and retirement accounts all qualify. Some lenders now accept verified cryptocurrency holdings. Real estate equity doesn't count.
They divide your total verified liquid assets by a specified number of months, typically 60-360. A $600,000 portfolio divided by 120 months creates $5,000 monthly qualifying income.
Yes, but lenders apply a 30-40% discount to account for early withdrawal penalties and taxes. A $500,000 IRA might count as $300,000-350,000 in qualifying assets.
Expect 20-30% down depending on credit score and asset type. Higher leveraged positions or volatile assets may push you toward the 30% requirement.
Plan for 1-2 weeks. Lenders need current brokerage statements and verification letters. Crypto assets require additional authentication steps through specialized verification platforms.
Yes. Most lenders require 12-24 months of mortgage payment reserves remaining after you cover down payment and closing costs. Your qualifying assets must exceed what you're spending.
Asset Depletion Loans in South San Francisco