Asset depletion loans in California — qualify on what you've built

An asset depletion loan qualifies a California borrower by converting eligible liquid assets into a monthly qualifying income, rather than relying on employment income. The lender totals your checking, savings, brokerage, and (with program-specific treatment) retirement accounts, then divides that total over a set number of months to produce an income figure the underwriter uses just like a paycheck. Lumen compares four methods — our 36-month and 60-month portfolio programs, Freddie Mac's accumulated-assets method, and the Fannie Mae employment-related assets calculation — and uses whichever qualifies you highest. Our portfolio programs require no tax returns, W-2s, or employment income.

No. This is the most common misconception about asset depletion. The calculation is purely a paper exercise to establish qualifying income — your accounts are never touched or pledged, and you don't have to liquidate anything. This matters especially in California, where selling appreciated positions can trigger significant capital-gains tax; asset depletion lets you qualify without realizing those gains.

Eligible assets typically include checking and savings, brokerage and investment accounts, and retirement funds. Retirement accounts receive program-specific treatment and possible discounts — for example, our 36-month program counts them at 100% if the owner is of retirement age and 90% if not. Some programs apply a haircut to volatile or non-liquid holdings. We'll review your specific account mix and tell you exactly what counts before you shop.

We run four methods on the same assets and use whichever qualifies you for the most. Our 36-month portfolio program divides your retirement/IRA assets by 36 — counted at 100% if you're of retirement age (90% if not) — and divides your liquid and investment assets by 60, then adds the two together; for retirement-heavy borrowers this usually produces the highest income. Our 60-month portfolio program divides total assets by 60. Freddie Mac's updated accumulated-assets method (Bulletin 2026-10) divides net eligible assets by 180 and requires at least $30,000 in net eligible assets. The Fannie Mae employment-related assets method is the most conservative: it subtracts any early-withdrawal penalty and the funds needed for down payment, closing, and reserves, then divides by the loan term in months, with a 70% max LTV (80% if the asset owner is 62+). The Freddie Mac and Fannie Mae methods are agency calculations that follow conventional guidelines, not non-QM rules. You can compare all four side by side in our assets-as-income calculator.

Yes — that's exactly what the program is for. Asset depletion exists for borrowers with little or no employment income, including retirees and investors living off their portfolios and founders between ventures. If you do have W-2, 1099, Social Security, pension, or business income, we can often layer it on top of the asset-based income to increase your qualifying power, but no employment income is required to qualify.

The minimum credit score is 620, with the best pricing available at 740 and above. Our portfolio asset depletion programs go up to 90% LTV (10% down) on a primary residence, 85% LTV (15% down) on a second home, and 70% LTV (30% down) on an investment property, with loan amounts from $150,000 up to $3,000,000 or more — a common fit for higher-value California properties across the Bay Area, Los Angeles, Orange County, and San Diego. Stronger credit and larger asset reserves improve your terms.

They're closely related — both are asset-based qualifying methods. Our IRA and retirement-account programs focus specifically on retirement funds, while asset depletion draws on your full eligible liquid base: savings, brokerage, and retirement. For many California borrowers we compare both approaches and use whichever produces the higher, cleaner qualifying income.