Question 1

How much in assets do I need for a Gilroy home?

Accepted Answer

Plan on 2-3x the purchase price in liquid assets. A $750K home typically requires $1.5M-$2M in verified savings and investments to qualify comfortably.

Question 2

Can I use my 401(k) for asset depletion?

Accepted Answer

Only if you're taking penalty-free distributions already. Most lenders exclude retirement accounts unless you're age 59½ or older with documented withdrawal history.

Question 3

What interest rate should I expect?

Accepted Answer

Non-QM rates run 1-2% above conventional loans as of February 2026. Rates vary by borrower profile and market conditions, with stronger credit and larger down payments earning better pricing.

Question 4

How long does underwriting take?

Accepted Answer

Asset depletion loans close in 30-45 days typically. Verification of 90-day asset seasoning adds time compared to conventional loans, especially with multiple account sources.

Question 5

Do I deplete my actual assets?

Accepted Answer

No. Lenders calculate income by dividing assets by 360 months, but you don't withdraw funds. Your savings stay invested—it's just math for qualification purposes.

Asset Depletion Loans in Gilroy: Qualify on Savings, Not Paychecks