Loan Programs · 7 min read
Asset Depletion Jumbo Loans: How to Buy Above the Conforming Limit on Your Savings
By Mike Basti, President and Mortgage Broker · Individual NMLS #322904·An asset depletion jumbo loan lets you buy above your county's conforming limit by qualifying on your savings and investments instead of your tax returns. Fannie Mae and Freddie Mac asset rules stop at the conforming limit, so jumbo borrowers use non-QM programs that divide eligible assets by 60 to 120 months instead of 360. Save Financial, which has closed more than 2,000 self-employed loans since 2009, arranges these up to $3 million ($5 million by exception).
Key takeaways
- Agency asset depletion only works up to your county's conforming limit; above it you need a non-QM or portfolio jumbo program.
- Jumbo asset programs commonly divide qualifying assets by 60 to 120 months, versus 360 under Fannie Mae, so the same savings count for far more income.
- Expect about 640+ credit, about 25% down (30% over $3 million) and loans up to $3 million, $5 million by exception.
- It fits retirees, business sellers and investors with large balances but modest taxable income.
Why the Fannie Mae and Freddie Mac rules stop at the conforming limit
Fannie Mae and Freddie Mac only buy loans at or below the conforming limit, which runs up to $1,275,000 in California's highest-cost counties under the early 2027 figures some lenders already honor (check your county). Their asset-as-income rules are also conservative: Fannie Mae divides eligible retirement-type assets by the loan term, usually 360 months. Our Fannie Mae and Freddie Mac asset depletion guidelines walk through both agencies' rules in detail.
Once your loan amount is above the limit, none of that applies. The loan is a jumbo, and the lender sets its own asset rules. For borrowers with real wealth, that is usually good news.
How a jumbo asset depletion program counts your savings
The lender adds up your eligible assets, subtracts your down payment, closing costs and any required reserves, and divides what is left by the program's divisor, commonly 60 to 120 months. The result is treated as monthly income for the debt-to-income test. You don't spend the money and you don't move it; the lender only uses it to prove you can repay.
- Checking and savings: usually counted at full value.
- Brokerage accounts: often counted at a discount to allow for market swings.
- Retirement accounts: commonly 60% to 70% if you are under 59½, more once you are older.
One program we place, for example, divides qualifying assets by 60, requires at least $1,000,000 in qualifying assets for loan amounts over $1,500,000, has no reserve requirement, and allows up to a 50% debt-to-income ratio with a 660 minimum credit score. Other lenders use different divisors and minimums, which is why we compare them for you.
A worked example
A retired couple in Orange County is buying a $2,400,000 home with 25% down, $600,000, for a loan of $1,800,000. They hold $3,500,000 in savings and brokerage accounts.
| Step | Amount |
|---|---|
| Assets | $3,500,000 |
| Less down payment | −$600,000 |
| Qualifying assets | $2,900,000 |
| Monthly income at a 60-month divisor | $48,333 |
| Monthly income at an 84-month divisor | $34,524 |
| For comparison: 360-month divisor (Fannie Mae style) | $8,056 |
At a 60-month divisor and a 50% debt-to-income limit, that income supports up to about $24,166 a month in total housing and other debt. Under a 360-month divisor the same savings would produce only $8,056 a month, about one-sixth as much income, supporting roughly $4,028 of monthly debt, and the loan is above the conforming limit anyway. That is the whole case for a jumbo asset depletion program.
Typical terms (November 2026)
| Item | Typical |
|---|---|
| Minimum credit score | 640+ (some programs 660) |
| Down payment | About 25%; about 30% over $3 million |
| Loan amount | Up to $3 million; $5 million by exception |
| Qualifying assets | Often $500,000+; more on larger loans |
| Divisor | 60 to 120 months, by program |
| Reserves | None on some programs, 6 to 12 months on others |
Who a jumbo asset depletion loan fits
- Retirees buying in high-cost California markets on savings rather than a paycheck.
- Owners who sold a business or property and hold the proceeds.
- Self-employed borrowers whose returns show little income but whose accounts are large.
- Investors between ventures with substantial liquid assets.
If most of your strength is business deposits rather than savings, a bank statement loan may count more. If your loan fits under the conforming limit, compare the agency rules first; see high-balance vs jumbo for where that line falls.
“Asset depletion is about 5% of our self-employed loans, and most of them are jumbo. The clients usually have more than enough money; what they don't have is a tax return a bank can use. Counting the savings correctly is the whole job.”
— Mike Basti, President and Mortgage Broker, Save Financial (company NMLS #377740)
Sources: Fannie Mae Selling Guide: assets as a basis for repayment; FHFA: conforming loan limits; CFPB: Regulation Z §1026.43 (ability-to-repay rule). Program terms are typical as of November 2026 and vary by lender; we confirm them for your file.
About this article: Save Financial is a California-licensed independent mortgage brokerage (company NMLS #377740, DRE #01875766) in business since 2009, with offices in Newport Beach and Marina del Rey, serving all 58 counties. This article is general education, not a loan offer or commitment to lend. For a real quote, apply online or call 949-379-5320.