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Santa Cruz attracts retirees, tech executives, and investors with significant assets but little W-2 income. Asset depletion loans exist for exactly this borrower.
This is a non-QM loan. That means it falls outside standard agency guidelines. Lenders underwrite it manually, using your liquid assets as a proxy for income.
Typically 680+
Min Credit Score
60 Days
Asset Seasoning
Divided over 60–84 mo
Asset Calculation
Non-QM
Loan Type
30–40% haircut
Retirement Discount
Asset Depletion Loans in Santa Cruz
Lenders divide your eligible liquid assets by a set number of months — often 60 to 84 — to calculate a monthly income figure. That number drives your debt-to-income ratio.
Eligible assets typically include checking, savings, brokerage accounts, and vested retirement funds. Illiquid assets like real estate equity usually don't count.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Santa Cruz.
Santa Cruz attracts retirees, tech executives, and investors with significant assets but little W-2 income. Asset depletion loans exist for exactly this borrower.
This is a non-QM loan. That means it falls outside standard agency guidelines. Lenders underwrite it manually, using your liquid assets as a proxy for income.
Lenders divide your eligible liquid assets by a set number of months — often 60 to 84 — to calculate a monthly income figure. That number drives your debt-to-income ratio.
Most banks won't touch asset depletion loans. This is wholesale non-QM territory. Pricing, guidelines, and asset calculation methods differ significantly across lenders.
We work with 200+ wholesale lenders. Several specialize in non-QM programs with competitive asset depletion options for high-net-worth borrowers in coastal California markets.
The biggest mistake I see: borrowers assume any large account qualifies. Lenders scrutinize asset sourcing. Recent large deposits trigger questions. Seasoning — usually 60 days — matters.
Retirement accounts get discounted, often by 30–40%, because of early withdrawal penalties and tax implications. Know your actual eligible balance before you start the process.
Bank statement loans work better if you have self-employment income flowing through business accounts. Asset depletion works better when your money sits in investment or savings accounts.
DSCR loans are the right call if the Santa Cruz property itself generates rental income. Asset depletion is personal — it's based on what you hold, not what the property earns.
Santa Cruz sits in a high-cost coastal market. Loan amounts on non-QM programs can go well above conforming limits, which matters here where purchase prices run steep.
The local buyer pool includes a lot of UCSC-affiliated professionals, Bay Area equity migrants, and retirees cashing out of appreciated properties elsewhere. Asset depletion fits several of these profiles.
It depends on the loan amount and lender formula. Most lenders divide assets over 60–84 months. You need enough imputed income to cover your debt-to-income ratio.
Yes, but lenders typically discount retirement accounts by 30–40%. Only the adjusted balance counts toward your imputed income calculation.
Yes. Non-QM loans carry higher rates than conventional or FHA loans. Rates vary by borrower profile and market conditions.
Yes. Some non-QM lenders allow asset depletion on investment properties. Guidelines tighten — expect higher down payments and stricter reserve requirements.
Non-QM loans typically close in 21–30 days. Manual underwriting adds time. Have your asset statements ready and fully seasoned before you apply.
Most non-QM lenders want 680 or higher for asset depletion programs. Some go lower with compensating factors like a large down payment or substantial reserves.