Asset-Based Qualifying · California
Asset depletion loans in California — qualify on what you've built
Convert your liquid savings, brokerage, and retirement accounts into qualifying income — even with little or no employment income. Lumen Mortgage offers asset-based mortgages across California for retirees, investors, founders, and high-net-worth borrowers whose balance sheet tells the real story.
- No job or employment income required
- Savings, brokerage & retirement accounts count
- Down payments from 10%
- No need to liquidate your accounts
What is an asset depletion loan in California?
An asset depletion loan is a mortgage that qualifies California borrowers by converting their liquid assets into a monthly income figure — instead of relying on tax returns, W-2s, or a job. The lender totals your eligible savings, investment, and retirement accounts and divides them over a set number of months to produce qualifying income. You don't have to liquidate anything; the calculation is a paper exercise.
- No employment income required — assets do the qualifying
- Eligible accounts: checking/savings, brokerage/investment, and retirement funds
- Three methods compared (36-month, 60-month, and Fannie Mae) to maximize your income
- Down payments from 10%; loan amounts $150,000 to $3,000,000+ across California
What is an asset depletion loan?
An asset depletion loan — also called an asset-based or assets-as-income mortgage — qualifies you on the wealth you've accumulated rather than the income you earn. In a state where home prices are high and equity-driven wealth is common, that distinction matters more than almost anywhere else: plenty of California borrowers have the assets to buy comfortably but not the W-2 income to prove it conventionally.
Instead of tax returns and pay stubs, the lender totals your eligible liquid assets and divides them over a set number of months to create a monthly qualifying income. That figure is used just like employment income to size your loan.
This is a non-QM (alternative-documentation) program within Lumen's broader [self-employed mortgage](/loans/residential/self-employed) suite, and it overlaps closely with our [IRA and retirement-account programs](/loans/residential/ira-loans) — we'll model both and use whichever produces the strongest, cleanest qualifying income.
Crucially, qualifying on your assets doesn't mean spending them. The calculation establishes income on paper; your accounts stay invested and working for you.
How to estimate your qualifying income from assets in California
Asset depletion income comes down to two things: your total eligible assets and the divisor the program uses. Divide your eligible assets by the program's month count and you have your monthly qualifying income.
Monthly qualifying income = Eligible assets ÷ Program divisor (36, 60, or the loan term).
Use our assets-as-income calculator below to compare all three methods on your own numbers and see which one qualifies you for the most.
Assets as Income Calculator
Portfolio programs vs. the Fannie Mae calculation
Your assets
The 36-month program counts retirement at 100% if of retirement age, 90% if not. This also removes the Fannie Mae early-withdrawal penalty.
Qualifying income by method
Lumen 36-Month Program
Best resultPortfolio · assets ÷ 36
$22,222/mo
Qualifying monthly income
$800,000 eligible ÷ 36 (retirement at 90%)
Lumen 60-Month Program
2nd highestPortfolio · assets ÷ 60
$14,167/mo
Qualifying monthly income
$850,000 ÷ 60
Fannie Mae
3rd highestEmployment-related assets
$2,083/mo
Qualifying monthly income
($850,000 − $50,000 penalty − $50,000 closing) ÷ 360
This is an estimate, not a commitment to lend or an approval. The Fannie Mae figures follow the Employment-Related Assets as Qualifying Income method: net eligible assets, less any early-distribution penalty and less funds needed for down payment, closing costs, and reserves, divided by the loan term in months. Fannie Mae limits eligible assets (checking and savings generally do not count unless sourced from an eligible employment-related asset; stock options, non-vested stock, inheritance, lawsuit and real-estate-sale proceeds, and virtual currency are excluded) and is available only on purchase and limited cash-out refinances of a primary residence or second home, at 70% LTV (80% if the asset owner is 62+ at closing). Our 36-month and 60-month portfolio programs use their own eligibility rules, and final qualifying income is determined by the underwriter after a full review. Actual results depend on program guidelines, credit, LTV, reserves, property type, and pricing. Lumen Mortgage · NMLS #1498678 · Licensed in Oregon & California. Equal Housing Lender.
How to read your results: The 36-month program usually produces the highest income (and counts retirement accounts at 100% if you're of retirement age). The 60-month program is more conservative. The Fannie Mae method is the most conservative — it subtracts penalties, down payment, closing, and reserves before dividing by the loan term. On higher-priced California homes the difference between methods can be substantial, so it's worth modeling all three.
Asset depletion loans for California borrowers
California concentrates more asset-rich, income-light borrowers than any other state — founders and early tech employees sitting on equity, executives with deferred compensation, and a large population of retirees and investors whose wealth lives in brokerage and retirement accounts rather than a paycheck. Asset depletion lending is built for exactly these profiles, and California's high home values make the added qualifying power especially valuable.
Bay Area founders and equity-rich buyers
The Bay Area has the highest concentration of equity-derived wealth in the country. Founders, early employees, and independent operators often hold large brokerage and vested-equity balances while drawing minimal salary — a profile conventional lenders struggle with. Asset depletion converts those balances into qualifying income for purchases across San Francisco, the Peninsula, and Silicon Valley, without forcing a sale of the position.
Los Angeles and Orange County high-net-worth borrowers
Southern California's entertainment, professional, and business-owner communities frequently combine substantial net worth with irregular or intentionally low taxable income. From the Westside and Pasadena through Newport Beach and Irvine, asset depletion lets high-net-worth buyers qualify on their savings, investment, and retirement accounts — and layer in any 1099 or business income to push qualifying power higher on higher-value homes.
Retirees in wine country, the desert, and the coast
California draws downsizing and second-home retirees to Napa and Sonoma, the Palm Springs desert communities, San Diego, and the Central Coast. These buyers typically have the assets and the down payment but no employment income to document. Asset depletion — often compared side by side with our IRA/retirement-account qualifying — supports both primary purchases and refinances, and pairs naturally with Social Security and pension income.
Asset depletion loan requirements in California
Eligible assets
- Checking and savings accounts
- Brokerage and investment accounts
- Retirement funds (with program-specific treatment and possible discounts)
- Assets may be held individually, jointly, or in trust
How income is derived
- 36-month program: eligible assets ÷ 36 (retirement at 100% if of retirement age, 90% if not)
- 60-month program: total eligible assets ÷ 60
- Fannie Mae employment-related assets: net of penalties, down payment, closing & reserves ÷ loan term
- No liquidation required — the calculation is a paper exercise
Credit and borrower requirements
- Minimum credit score: 620 (680+ for best pricing)
- No employment income required
- Asset statements — typically the most recent 2–3 months / most recent quarter
- Assets may be combined with W-2, 1099, or business income to increase qualifying power
Loan terms and structure
- Loan amounts: $150,000 – $3,000,000+
- Down payments from 10% for qualified borrowers
- Primary residence, second home, and investment property
- Fixed and ARM options available
Asset depletion vs. conventional loans
Conventional underwriting is built around employment income — tax returns, W-2s, pay stubs, and a debt-to-income ratio. For a salaried borrower that works fine. For an asset-rich, income-light California borrower it's often a dead end, no matter how large the balance sheet.
| Criterion | Asset depletion loan | Conventional loan |
|---|---|---|
| Qualification basis | Liquid assets converted to income | Employment income & DTI |
| Employment income required | No | Yes |
| Tax returns required | No | Yes (2 years) |
| Retiree-friendly | Yes | Often difficult |
| Must liquidate assets | No | N/A |
| Down payment | From 10% | From 3–5% |
| Can layer with other income | Yes | Limited |
| Best for | Retirees, investors & high-net-worth borrowers | W-2 borrowers with steady paychecks |
Asset depletion is one of several ways to qualify without a traditional paycheck. If your wealth is concentrated in retirement accounts, our IRA and retirement-account loans may qualify you higher. Self-employed with strong deposits? Compare our bank statement loans in California. Buying a rental? DSCR loans qualify on the property's cash flow instead. Related tools: Assets-as-Income Calculator.
What California borrowers say about Lumen Mortgage
"Most of my net worth is in brokerage and vested equity, and I take almost no salary. A big bank couldn't make sense of it. Lumen used my accounts to build the qualifying income and we closed on our Peninsula home without selling a single share."
"We retired to the desert and live off our investments and Social Security. Lumen ran the asset methods against each other, added our Social Security on top, and qualified us for the home we actually wanted — not the one a DTI formula said we could afford."
Frequently asked questions — asset depletion loans in California
How do asset depletion loans work in California?
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 three methods — a 36-month program, a 60-month program, and the Fannie Mae employment-related assets calculation — and uses whichever qualifies you highest. No tax returns, W-2s, or employment income are required.
Do I have to cash out my investments or retirement accounts to qualify?
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.
Which assets count toward an asset depletion loan?
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.
What assets-as-income programs do you offer, and how do they compare?
We run three methods on the same assets and use whichever qualifies you for the most. The 36-month program divides your eligible assets by 36 and counts retirement accounts at 100% if you're of retirement age (90% if not) — this usually produces the highest income. The 60-month program divides total assets by 60. 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. You can compare all three side by side in our assets-as-income calculator.
Can I get an asset depletion loan in California with no job or employment income?
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.
What credit score and down payment do I need in California?
The minimum credit score is 620, with the best pricing available at 680 and above. Qualified borrowers can put as little as 10% down, 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.
How is an asset depletion loan different from an IRA or retirement-account loan?
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.
Further reading on asset-based lending
Asset Depletion Loans in Oregon and California: How to Turn Savings, Investments, and Retirement Into Mortgage-Qualifying Income (2026)
Asset-rich but income-light? An asset depletion loan converts your savings, investments, and retirement accounts into qualifying income — no job, paycheck, or tax returns required. Here's how the three calculation methods work, and why the same borrower can qualify for wildly different loan amounts depending on which one a lender uses.
How to Qualify for a Mortgage in Retirement — Without Taking Taxable Distributions (Oregon & California, 2026)
You can qualify for a mortgage in retirement using your savings, investments, and retirement accounts — without starting a single taxable distribution. Here's how Oregon and California lenders actually convert assets, Social Security, and pensions into qualifying income, why the widely repeated numbers (the 70% "discount" and the 25% Social Security gross-up) are wrong, and why the timing of your application relative to your retirement date matters more than almost anything else.
How IRA Loans Helped Two Oregon Borrowers Qualify When Tax Returns Couldn't
An IRA loan uses your retirement balance — divided by 36 months — as qualifying income. No distributions required, no age restrictions. Here are two real Oregon scenarios where this program closed the gap: a newly retired Tigard couple buying without triggering taxable distributions, and a recently self-employed Oregon City borrower qualifying without two years of returns.
Ready to talk to a California loan officer?
We'll walk you through the numbers, explain your options, and let you decide — no pressure, no sales pitch.