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Los Gatos sits at the heart of Silicon Valley's wealth corridor. OpenAI's new Mountain View office complex signals continued tech investment nearby, supporting long-term property values here.
Asset Depletion Loans let retirees and semi-retired buyers tap accumulated savings instead of W-2 income. If you've built equity or have liquid assets, this program counts that wealth toward qualification.
620
Minimum FICO
$500,000+
Typical asset requirement
10–20%
Down payment range
45–60 days
Closing timeline
0.25–0.5%
Rate premium vs. conventional
Asset Depletion Loans require a 620+ FICO score and typically 10% to 20% down. The program divides your liquid assets by 360 months to create a qualifying income figure. A $500,000 portfolio becomes roughly $1,389 in monthly qualifying income.
Lenders examine bank statements, brokerage accounts, and retirement savings. Real estate holdings and retirement accounts (with restrictions) count.
Asset Depletion Loans are a niche product. Most retail banks don't offer them; portfolio lenders and specialized mortgage brokers do. California has a handful of lenders who underwrite these consistently, but availability varies by county and loan amount.
Underwriting takes longer because assets must be documented and seasoned. Expect 45 to 60 days to close. The lender will require recent statements, proof of asset ownership, and sometimes a letter from a financial advisor.
Asset Depletion Loans make sense in Los Gatos for retirees with $500,000+ in liquid savings but no current W-2 income. If you've sold a business, inherited wealth, or cashed out a 401(k), this program opens doors that conventional lenders shut.
They don't make sense if you still have W-2 income. Conventional loans will be cheaper and faster. Asset Depletion also requires you to prove the assets won't be depleted for other purposes — lenders want confidence you'll service the mortgage.
Conventional loans require W-2 income or 1099 self-employment history. Asset Depletion bypasses that entirely. If you're retired and have no recent tax returns, conventional won't work. Asset Depletion will — if your assets are large enough.
The tradeoff: Asset Depletion rates run higher and closing takes longer. Conventional is faster and cheaper if you qualify on income. For retirees without W-2s, Asset Depletion isn't a choice — it's the only path forward.
Silicon Valley Lunar New Year Together drew over 200 vendors to Santa Clara in late January. That kind of cultural density and economic activity attracts retirees who want urban walkability without leaving California.
Asia Live Food Emporium opened at Westfield Valley Fair with a 13,000-square-foot footprint. Dining and retail expansion signals confidence in the area's long-term appeal.
No. Asset Depletion Loans are built for retirees and semi-retired buyers. The program counts liquid assets as income instead. Your savings replace your paycheck in the qualification math.
Lenders typically want $500,000+ in liquid assets. The exact amount depends on the purchase price and down payment. A $1,200,000 home with 15% down ($180,000) might require $400,000–$600,000 in documented savings.
Bank accounts, brokerage accounts, and money market funds count. Some retirement accounts (IRAs, SEP-IRAs) qualify with restrictions. Real estate, vehicles, and personal property do not. Lenders want assets that can be accessed quickly if needed.
No. The down payment comes from your assets, but the lender doesn't require you to drain your accounts. You need enough remaining assets to satisfy the lender's reserves and income-calculation requirements after closing.
Plan for 45 to 60 days. Asset documentation takes time. Lenders need recent statements, proof of ownership, and sometimes verification from your financial advisor. Conventional loans close in 30 days; Asset Depletion is slower.
Asset Depletion Loans in Los Gatos