Loading
Loading
Asset Depletion Loans in Davis
Can I use my retirement accounts to qualify for an Asset Depletion Loan?
Yes. The lender divides your retirement account balance by 360 months to create qualifying income. A $300,000 IRA counts as roughly $833 monthly income.
01
Davis voters approved Measure V in June 2026 to change the Village Farms land use designation. New housing supply is coming, and the median household income in Yolo County is $88,818.
Asset Depletion Loans let you qualify using savings and investments when your income alone doesn't meet the lender's requirement. This matters in Davis, where many retirees and career-changers have assets but modest monthly income.
620 FICO
Minimum Credit Score
10% to 20%
Down Payment Range
45–60 days
Typical Timeline
$88,818
Yolo County Median Income
02
Asset Depletion Loans typically require a 620 FICO minimum, though 640+ is standard for better terms. Down payment ranges from 10% to 20% depending on the lender.
The lender divides your liquid assets by 360 months to calculate monthly income from savings. On $300,000 in retirement accounts, that's about $833 per month added to your actual income.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Davis.
Davis voters approved Measure V in June 2026 to change the Village Farms land use designation. New housing supply is coming, and the median household income in Yolo County is $88,818.
Asset Depletion Loans let you qualify using savings and investments when your income alone doesn't meet the lender's requirement. This matters in Davis, where many retirees and career-changers have assets but modest monthly income.
Asset Depletion Loans typically require a 620 FICO minimum, though 640+ is standard for better terms. Down payment ranges from 10% to 20% depending on the lender.
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, so fewer lenders offer them. Brokers typically source these through portfolio lenders or credit unions that specialize in non-traditional income.
Underwriting is slower because each lender has different asset-counting rules and documentation needs. Expect 45 to 60 days from application to close, compared to 30 days for a standard conventional loan.
04
Asset Depletion Loans make sense for Davis buyers with substantial savings but limited W-2 income. Retirees, freelancers between contracts, and those with irregular commission fit this profile well.
The 2026 conforming limit in Davis is $832,750. Below that ceiling, asset depletion shines when savings bridge the income gap.
05
Conventional loans require income to qualify and typically demand 20% down to avoid PMI. Asset Depletion Loans let you put down 10% and use savings as income, but rates run higher.
FHA loans go down to 3.5% down and accept lower credit scores, but mortgage insurance never cancels if you put down less than 10%. Asset Depletion avoids lifetime insurance but demands more liquid assets.
06
The California Honey Festival expanded to two days in nearby Woodland, reflecting the region's agricultural roots. Davis itself is home to UC Davis, drawing younger families and professionals with irregular income.
Village Farms Davis is designed to address the city's housing shortage for younger families. If you're relocating to Davis for work or retirement, Asset Depletion Loans can help you qualify.
07
Asset Depletion Loans are a niche product in California, offered mainly by portfolio lenders and credit unions. Mortgage banks and large retail lenders rarely keep these loans on their books.
Demand for Asset Depletion Loans has grown as California's population ages and more retirees move into the state. Davis, home to UC Davis and a retirement-friendly community, sees steady interest from buyers with assets but limited income.
FAQ
Yes. The lender divides your retirement account balance by 360 months to create qualifying income. A $300,000 IRA counts as roughly $833 monthly income.
Most lenders require 620 FICO minimum, but 640 or higher gets better rates. The exact threshold varies by lender.
Expect 45 to 60 days from application to closing. These loans take longer than conventional because underwriting is manual.
Not always. Asset Depletion rates run higher than conventional, and FHA may be cheaper if you qualify. Compare all three with your broker.
Asset Depletion Loans typically require 10% to 20% down. The exact percentage depends on your credit score, assets, and the lender.
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 Yolo County
Our team of licensed mortgage brokers works Yolo 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 Yolo 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.