What Are Asset-Based Mortgage Loans?
Asset-based loans (also called asset depletion or asset dissipation loans) qualify borrowers using their liquid assets rather than employment income. The lender calculates a hypothetical monthly income by dividing your eligible assets by a set number of months (typically 240 or 360). A borrower with $2,000,000 in liquid assets divided by 360 months has a calculated monthly income of $5,556 — which can qualify for a substantial California mortgage without any employment or traditional income documentation.
This program serves retirees living on savings and investments, entrepreneurs who have sold a business, trust fund beneficiaries, investors with large portfolios but irregular income, divorcing spouses receiving a lump-sum settlement, and foreign nationals with substantial overseas assets. The common thread: significant wealth that doesn't appear as traditional monthly income on tax returns.
Asset-Based Loan Requirements
Typical California asset-based loan requirements include: eligible assets of at least $500,000 in qualified accounts (checking, savings, investment/brokerage, retirement accounts, CDs), a minimum credit score of 680 (700+ for the best rates), a down payment of 20-30% from non-asset-depletion funds or from the same asset pool, and standard property documentation (appraisal, title, insurance). Retirement accounts (401k, IRA) are typically counted at 60-70% of value to account for taxes and early withdrawal penalties. Stock portfolios may be counted at 70-80% depending on volatility.
Loan amounts range from $200,000 to $5 million or more. Both conforming and jumbo asset-based programs exist. Interest rates are typically 0.5-1.5% above standard conventional rates. Fixed-rate and adjustable-rate options are available. The property must be a primary residence, second home, or investment property — all occupancy types are eligible.
Asset-Based vs. Bank Statement Loans
Asset-based and bank statement loans both serve borrowers who cannot qualify using traditional income documentation, but they solve different problems. Bank statement loans are for self-employed borrowers with active business income flowing through their accounts — the deposits demonstrate ongoing earning capacity. Asset-based loans are for borrowers with accumulated wealth but limited or no current income — the assets themselves serve as the qualification basis. A retired executive with $3 million in investments and no employment uses asset depletion. A business owner with $50,000/month in deposits but tax-return income of $80,000 uses bank statements.
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Frequently Asked Questions — Asset-Based Loans
What is an asset depletion loan in California?
An asset depletion loan converts liquid assets into qualifying income without requiring employment. The lender divides eligible assets — typically 70% to 100% of retirement accounts and 100% of cash and brokerage holdings — across a set term, often 84 to 360 months. A $2 million portfolio divided over 120 months yields roughly $16,600 in monthly qualifying income. Expect 20-30% down and a 660-700 credit score.
What credit score do I need for asset-based loans?
Most asset depletion loan programs in California look for 660-700+. Credit tends to affect your pricing more than your eligibility — a stronger score usually shows up as a lower rate rather than a different answer on whether you qualify.
How much down payment do I need?
An asset depletion loan in California typically requires 20-30% down. The exact figure moves with your credit profile, occupancy and property type — stronger files land at the low end of that range.
How long does closing take?
An asset depletion loan in California generally closes in 30-45 days. Appraisal turn times and how quickly you return requested documents are the two things that move that timeline most.
Can I use this program for an investment property?
An asset depletion loan is available for primary, second home or investment. Occupancy affects both pricing and down payment, so confirm the intended use up front — it changes the terms you are quoted.
Are rates higher for asset-based loans?
Asset depletion loan rates run roughly 1% to 2% above a comparable conventional loan, which is the cost of documenting income a different way. Your specific number depends on credit, down payment, occupancy and the day you lock.
Do I need to verify my income?
For an asset depletion loan, income is qualified by dividing liquid assets across a set term — no employment or income required. This is the main way the program differs from a standard conventional loan, and it is usually the reason borrowers choose it.
Can I refinance later into a different program?
Yes. With an asset depletion loan the usual path is to refinance into conventional if you later have documentable employment income. Nothing locks you in — plan the exit when you take the loan rather than after.
What documents do I need to apply?
For an asset depletion loan you will need a government ID, credit authorization and property details, plus two to three months of statements for every account plus proof funds are seasoned and accessible.
How do I get started?
Call (888) 703-1840 for a free asset depletion loan consultation, or use the form on this page. Pre-approval usually takes 1-3 business days, and there is no cost and no hard credit pull to find out what you qualify for.
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Last updated: July 2026. Sources: Federal Housing Finance Agency (FHFA), U.S. Department of Housing and Urban Development (HUD), Consumer Financial Protection Bureau (CFPB), California Department of Real Estate, California Association of Realtors. All loans subject to credit approval. Rates and terms subject to change.
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