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Asset Depletion Loans in San Jose
Can I use retirement accounts for the down payment on an asset depletion loan?
Yes. Most lenders allow you to count retirement savings toward both the down payment and the qualifying income calculation. Verify with your lender that early withdrawal penalties won't apply.
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San Jose's median home price sits well above $1,200,000, putting most properties beyond traditional lending reach. Asset depletion loans let retirees and semi-retired buyers tap savings instead of monthly income to qualify.
Santa Clara County's median household income of $159,674 supports strong purchasing power for working buyers. But for those living on retirement accounts, asset depletion opens doors that W-2 income alone cannot.
620
Minimum FICO
20-30%
Down Payment Range
45-60 days
Typical Timeline
$159,674
County Median Income
02
Asset depletion loans typically require a 620+ FICO score and 20% to 30% down payment. The lender divides your liquid assets by 360 months to create a qualifying income figure.
Retirees with $500,000 in savings can show roughly $1,389 monthly income from that pool. Combined with any Social Security or pension, that often reaches the income needed for a $1,200,000+ purchase in San Jose.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in San Jose.
San Jose's median home price sits well above $1,200,000, putting most properties beyond traditional lending reach. Asset depletion loans let retirees and semi-retired buyers tap savings instead of monthly income to qualify.
Santa Clara County's median household income of $159,674 supports strong purchasing power for working buyers. But for those living on retirement accounts, asset depletion opens doors that W-2 income alone cannot.
Asset depletion loans typically require a 620+ FICO score and 20% to 30% down payment. The lender divides your liquid assets by 360 months to create a qualifying income figure.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
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Asset depletion loans are offered by a smaller set of lenders than conventional or FHA products. Most major banks avoid them; portfolio lenders and credit unions lead the market.
Underwriting takes 45 to 60 days because the lender must verify asset statements, tax returns, and retirement account documentation. Appraisals and title work follow the same timeline as any other mortgage.
04
Asset depletion loans shine for retirees with substantial savings but limited monthly income. If you have $800,000 in retirement accounts and Social Security, this program often beats FHA or conventional denial.
They fall short when you have strong W-2 income but weak credit. A salaried buyer with a 580 FICO will find conventional or FHA easier than fighting asset depletion overlays.
05
FHA loans require only 3.5% down but saddle you with lifetime mortgage insurance if down payment is under 10%. Asset depletion typically asks for 20% to 30% down but skips mortgage insurance entirely.
Conventional loans demand strong income and 20% down. If your paychecks don't qualify but your savings do, asset depletion is the only path forward.
06
Santa Clara University and Sutter Health are launching the Bay Area's first medical school in over 100 years. That kind of institutional investment signals long-term growth in San Jose's professional sector.
Downtown San Jose continues to attract new dining and entertainment. Strata, a two-concept upscale restaurant, opened May 13 downtown, reflecting the city's appeal to established professionals and retirees.
FAQ
Yes. Most lenders allow you to count retirement savings toward both the down payment and the qualifying income calculation. Verify with your lender that early withdrawal penalties won't apply.
No. Employment is not required. The lender uses your liquid assets divided by 360 months as your qualifying income. Social Security, pensions, and other passive income stack on top of that figure.
Most lenders require 620 FICO or higher. Some portfolio lenders go down to 600 with strong compensating factors like substantial reserves or a large down payment.
Rates are typically 0.25% to 0.5% higher than conventional because the lender carries more risk. No mortgage insurance applies, which often offsets the rate premium over time.
Plan for 45 to 60 days. The lender must verify multiple asset statements and tax returns, which takes longer than a standard income-based mortgage.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Santa Clara County
Our team of licensed mortgage brokers works Santa Clara County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Santa Clara County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.