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Asset Depletion Loans in Sonoma
Can I use retirement accounts like IRAs or 401(k)s for asset depletion?
Yes. Lenders typically count a portion of your retirement savings as monthly income. The exact percentage varies by lender, but it's usually 70% to 80% of the account balance divided by 360 months.
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Sonoma County's median household income of $102,840 supports homes across the full range here. Asset depletion loans let buyers use retirement savings and investments to qualify, even when income alone falls short.
The 2026 conforming limit in Sonoma is $897,000. This program opens doors for retirees and investors who have assets but modest W-2 income.
620 FICO
Minimum Credit Score
10–20%
Down Payment Range
$102,840
County Median Income
$897,000
2026 Conforming Limit
02
Asset depletion loans require a 620 FICO minimum and typically 10% to 20% down. The lender counts a portion of your liquid assets as monthly income, allowing you to qualify on savings rather than paychecks alone.
Sonoma County's median household income is $102,840. If your W-2 income is lower but you have substantial retirement accounts or investments, asset depletion can bridge the gap to homeownership.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Sonoma.
Sonoma County's median household income of $102,840 supports homes across the full range here. Asset depletion loans let buyers use retirement savings and investments to qualify, even when income alone falls short.
The 2026 conforming limit in Sonoma is $897,000. This program opens doors for retirees and investors who have assets but modest W-2 income.
Asset depletion loans require a 620 FICO minimum and typically 10% to 20% down. The lender counts a portion of your liquid assets as monthly income, allowing you to qualify on savings rather than paychecks alone.
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.
03
Asset depletion loans are less common than conventional or FHA options. Finding a lender requires a broker familiar with portfolio lenders and niche programs.
Most major retail banks don't carry them. Portfolio lenders and credit unions are your best bet for this program.
04
Asset depletion loans shine for retirees with strong savings but limited pension or Social Security income. If you've built a nest egg and want to buy in Sonoma without depleting it entirely, this program fits.
They don't make sense if you have solid W-2 income and can qualify conventionally. The rates are typically higher and the process slower, so use asset depletion only when traditional paths close.
05
Conventional loans require income documentation and typically 20% down to avoid PMI. Asset depletion loans let you put down less and count your savings as income, trading a faster close for a more complex underwriting process.
FHA loans accept lower credit scores and smaller down payments, but they carry lifetime mortgage insurance if you put down less than 10%. Asset depletion avoids mortgage insurance entirely, making it attractive if you have assets but limited income.
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Graton Resort & Casino's new rooftop restaurant AYA signals ongoing investment in Sonoma County's dining and hospitality scene. For buyers planning to stay long-term, that kind of local growth supports property values.
The West Sonoma County Union High School District's budget constraints and program cuts reflect enrollment pressures across the region. Buyers with school-age children should factor in these shifts when choosing neighborhoods.
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Asset depletion lending in California remains a niche market. Portfolio lenders and credit unions dominate this space because they can hold loans in portfolio rather than sell them immediately.
Underwriting standards vary widely by lender. Some count 70% of liquid assets as monthly income; others use 80%. Documentation requirements are strict—bank statements, brokerage records, and retirement account statements all get reviewed carefully.
FAQ
Yes. Lenders typically count a portion of your retirement savings as monthly income. The exact percentage varies by lender, but it's usually 70% to 80% of the account balance divided by 360 months.
A 620 FICO is the minimum. Higher scores improve your rate and approval odds. Most lenders prefer 640 or above for the best terms.
Expect 45 to 60 days from application to closing. Asset verification takes time. The process is slower than conventional because the lender must carefully document and value your assets.
No. Asset depletion loans count your savings as income without requiring you to spend it down. You keep your assets intact while using them to qualify for the mortgage.
Typically 10% to 20% down. The exact amount depends on your credit score, assets, and the lender's guidelines. Lower down payments are possible if your asset position is strong.
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 Sonoma County
Our team of licensed mortgage brokers works Sonoma 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 Sonoma 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.