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Cotati sits in Sonoma County where the median household income is $102,840. Apple's new Santa Rosa store and 20+ restaurants opening in 2026 signal economic momentum. Home prices here reflect the county's desirability and strong job market.
Asset depletion loans let retirees and semi-retired buyers qualify using retirement savings instead of ongoing employment income. If you're drawing from a 401(k), IRA, or pension, this program counts that as qualifying income. No W-2s required.
620
Minimum FICO
10–20%
Typical down payment
$897,000
Conforming limit (2026)
45–60 days
Typical close timeline
Asset depletion loans require a 620+ FICO score and typically 10% to 20% down. Lenders calculate your qualifying income by dividing your liquid retirement assets by 360 months (30 years). A $300,000 IRA becomes roughly $833 monthly income.
The county's $102,840 median income buys homes in the $450,000 to $550,000 range comfortably. Retirees with $400,000+ in accessible retirement savings can qualify for loans up to the conforming limit of $897,000 depending on other debts and assets.
Asset depletion loans are a niche product. Most retail banks don't offer them; portfolio lenders and credit unions lead the market. Brokers can access these programs through specialized lenders who understand retirement income structures.
Underwriting takes longer because the lender must verify asset history and calculate depletion income. Expect 45 to 60 days from application to close. Documentation includes recent statements, tax returns, and proof of retirement account ownership.
Asset depletion loans make sense for Cotati buyers who are retired or semi-retired with strong liquid assets but limited W-2 income. If you have $400,000+ in retirement savings and a clean credit history, this program opens doors that conventional loans close.
They don't work for buyers still working full-time with W-2 income. Conventional and FHA loans will always be faster and cheaper for employed borrowers. Asset depletion is the answer when employment income doesn't exist or is too low to qualify.
Conventional loans require current W-2 income and typically 20% down to avoid PMI. Asset depletion loans need retirement savings instead of paychecks. If you're retired, conventional won't work — asset depletion is the only path.
FHA loans also require employment income or recent work history. Asset depletion stands alone as the program designed for buyers living on retirement accounts.
Santa Rosa is investing $12 million in park projects and a Highway 101 bicycle overpass breaking ground spring 2026. That infrastructure work signals long-term county commitment.
The new Apple store at Montgomery Village and 20+ restaurants opening in 2026 mean Sonoma County's economy is growing. That growth supports home values. For retirees, a stable and active community matters as much as the mortgage rate.
No. Asset depletion loans are designed for retirees and semi-retired buyers. Your retirement savings replace employment income. The lender divides your liquid assets by 360 months to calculate qualifying income.
Typically $300,000 to $400,000 minimum, depending on the loan amount and other debts. A $300,000 IRA counts as roughly $833 monthly income. Lenders want to see 10–20% down plus reserves after closing.
Most lenders require 620+ FICO. Some portfolio lenders go lower with compensating factors like substantial assets or a co-borrower. Call for your specific lender's floor.
Asset depletion loans typically close in 45–60 days. Underwriting is slower because the lender must verify retirement account history and calculate depletion income. Conventional loans close in 30–45 days.
Yes, but it's complicated. Early withdrawal penalties and taxes apply. Some lenders allow 401(k) loans or IRA rollovers. Discuss options with your tax advisor and lender before withdrawing.
Asset Depletion Loans in Cotati