Asset Depletion Mortgage in California

An asset-based (or 'asset depletion') mortgage qualifies California borrowers using their liquid assets instead of employment income. The lender treats your total qualifying assets divided by 60-84 months as if it were monthly income, then qualifies you against standard DTI ratios. This is the leading mortgage option for retirees, financially independent buyers, and high-net-worth individuals who don't draw a traditional paycheck.

Minimum qualifying assets vary by loan amount. As a rule of thumb, you need liquid assets equal to 1.5x – 2x the loan amount you want, AFTER setting aside down payment and 12 months of reserves. Example: $1M loan amount typically requires $1.5M – $2M in remaining liquid assets after subtracting $250K down payment + ~$120K in reserves. Save Financial calculates exact requirements based on your specific accounts.

Checking, savings, money market, taxable brokerage accounts, CDs, and certain retirement accounts all count — though retirement accounts (IRA, 401(k)) are typically counted at typically 60-70% of value if the borrower is under age 59½ to account for early-withdrawal penalties. Investment real estate equity, restricted stock, and crypto are NOT eligible. 100% of liquid assets count once the borrower reaches 59½, when retirement funds are accessible without penalty.

Most asset-based programs are restricted to primary residences and second homes. For investment properties, the better option is usually a DSCR loan, which qualifies on the property's rental income rather than your assets. Save Financial offers both and will recommend whichever produces the better outcome for your situation.

Not necessarily. As of October 2026, with the 10-year Treasury yield at its highest level since 2002, asset-based loans have often priced the same as or better than comparable conventional loans for our clients. Because rates move with the market, we quote a live number rather than fixed figures. Qualifying without employment income is the main draw for many high-net-worth borrowers.

Yes. Asset documentation is rigorous: 2-3 months of statements for every qualifying account, large-deposit explanations, and source-of-funds documentation for any recent transfers. The point of an asset-based loan isn't to reduce documentation overall — it's to substitute asset documentation for income documentation, which is much simpler for borrowers without employment income.

Yes. Many of our asset-based borrowers are working professionals who simply don't want to provide tax returns (privacy, complex K-1 returns, recent transitions). Save Financial does not require employment to be verified on an asset-based loan — the asset depletion calculation alone determines qualification. Some borrowers blend small income with assets for stronger qualifying numbers.

Marketable securities (stocks, bonds, mutual funds, ETFs) are typically counted at 70% – 80% of current market value to account for liquidation timing and tax impact. Cash and money market are counted at 100%. Retirement accounts are typically counted at 60-70% if the borrower is under 59½, and at 100% at 59½ or older. Save Financial computes the highest qualifying number across all asset categories.