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Gilroy draws retirees and investors who often hold significant assets but lack W-2 income. Asset depletion loans let you qualify using liquid reserves—stocks, bonds, savings—calculated as monthly income.
This loan fits Gilroy's mix of agricultural business owners and Bay Area transplants sitting on retirement portfolios. Lenders divide your total liquid assets by 360 months to create qualifying income.
Asset Depletion Loans in Gilroy
You need minimum liquid assets of $500,000 to $1 million depending on loan amount. Credit scores typically start at 680, though some lenders go to 660 with larger asset reserves.
Down payments run 20-30% for primary homes. Lenders verify assets through recent account statements showing 90 days of seasoning. Asset calculation excludes retirement accounts you can't access without penalty.
Asset depletion sits in the non-QM space, so you won't find it at Chase or Wells Fargo. We work with specialized lenders who understand how to structure these deals for Gilroy's price points.
Each lender calculates asset depletion differently—some divide by 360 months, others by 240. That math determines how much home you qualify for, so we shop formulas across our network.
Most Gilroy borrowers using asset depletion hold homes worth $800K-$1.5M. They're either downsizing from pricier Bay Area markets or retired early with stock portfolios but no traditional income.
Common mistake: assuming retirement accounts count. IRAs and 401(k)s typically don't qualify unless you're already taking penalty-free distributions. Focus on brokerage accounts, savings, and CDs.
Bank statement loans work better if you run a business with decent revenue flow. Asset depletion makes sense when your income is minimal but your balance sheet is strong.
DSCR loans beat asset depletion for investment properties—you qualify on rental income instead of burning down assets. Asset depletion shines for primary residences with no other income documentation.
Gilroy's home prices sit below San Jose but above Central Valley markets, making asset depletion viable for retirees relocating from costlier areas. A $1 million portfolio can support a $700K-$800K purchase.
South County appraisals move slower than North Valley, which can extend timelines. Sellers here see fewer asset depletion buyers than in Los Gatos, so your offer carries less weight without conventional financing.
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.
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.
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.
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.
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.