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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
Asset Depletion Loans in San Jose
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.
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.
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.
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.
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.
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.