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Asset Depletion · How to Qualify

How to Qualify for an Asset Depletion Loan in California

Qualifying is a modeling exercise, not a guessing game. Get the haircuts, divisor, and income stack right and your portfolio produces a qualifying income figure that speaks for itself. Here's the seven-step playbook — plus exactly what to do if you come up short.

7 stepsNo income docsNo liquidation~21–30-day close
MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

To qualify: 1) inventory eligible assets → 2) apply haircuts → 3) choose the strongest divisor → 4) stack other income → 5) confirm down (20%+) + reserves → 6) get pre-approved → 7) shop investors & close. See Requirements.

The 7-step playbook

  1. Inventory your eligible assets

    Cash, investment & retirement accounts in your name; 2–3 months statements, every page.

  2. Apply the correct haircuts

    Cash ~100%, stocks ~70%, retirement 60–80% by age → your true pool.

  3. Choose the strongest divisor

    Model 60–360 months; take the shortest program you qualify for.

  4. Stack other income

    Add Social Security, pension, dividends on top of the asset figure.

  5. Confirm down payment & reserves

    20%+ down + closing + reserves (often met by the same assets).

  6. Get pre-approved

    Submit statements, ID & credit → price & down payment you qualify for.

  7. Shop investors & close

    Make specialty investors compete on rate, then close in ~21–30 days.

Expert tip: Qualifying for asset depletion rewards optimization, not just eligibility. Two borrowers with the identical $1.5M portfolio can qualify for wildly different loan amounts depending on how the file is built — one takes a 360-month divisor with face-value assets and no income stack and barely qualifies; the other takes the strongest divisor, applies haircuts precisely, and layers in Social Security and dividends, and qualifies for nearly double. The portfolio didn't change; the modeling did. That's why the single most valuable thing you can do is have someone run every scenario before you apply. We do that pass for you and present the version that qualifies you for the most. Model my file →

If you come up short — how to close the gap

Short spotThe fix
Qualifying income too lowChoose a shorter divisor (60–84 mo)
Still short after divisorStack SS / pension / dividends on top
Assets below the minimumCombine with other income; lower price point
Loan too large for incomeIncrease down payment to shrink the loan
Retirement discounted heavilyWait for 59½ / use Roth (often ~100%)
Large unexplained depositPaper-trail & season the funds
Rate too high on one quoteShop specialty investors to compete

Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey. Nothing here is tax advice.

Asset-rich? Let's build the file that qualifies you for the most.

Send us your asset picture and any other income and we'll inventory and haircut every account, model every divisor, stack your income, and get you pre-approved on wealth you never have to touch — often closing in 21–30 days. Free, no obligation.