Asset Depletion Mortgage Los Angeles | Qualify on Assets, Not Income

Los Angeles is home to a large and diverse population of high-net-worth individuals — retirees, entertainment industry professionals, business owners, investors — who have accumulated significant wealth but may not show strong traditional income. An asset depletion mortgage allows these borrowers to qualify for a home loan based on their assets rather than their income.

What Is an Asset Depletion Mortgage?

An asset depletion loan (also called asset dissipation or asset utilization) calculates a hypothetical monthly income by dividing a borrower’s liquid or near-liquid assets by the remaining loan term or a set number of months. For example: a borrower with $3,000,000 in investment accounts and a 30-year mortgage term would have $3M ÷ 360 months = $8,333/month in qualifying income — without ever withdrawing a dollar.

Who Benefits Most in Los Angeles?

• Retirees living on investment portfolios, Social Security, or pension income who want a larger loan than their monthly income alone supports
• Entertainment professionals — actors, writers, directors, producers — with irregular project-based income and large savings
• Business owners who retain earnings in the business and show low personal income on tax returns
• Tech and finance executives with large stock portfolios, RSUs, or deferred compensation
• Foreign nationals with significant international assets

Eligible Assets for Depletion

• Checking, savings, and money market accounts (100% of value typically used)
• Investment accounts — stocks, bonds, mutual funds, ETFs (70–100% of value, after haircut for market risk)
• Retirement accounts — IRA, 401(k), SEP-IRA (60–70% of value for borrowers under 59½; higher for older borrowers)
• Vested stock options and restricted stock units (subject to lender guidelines)
• Proceeds from sale of a prior property (documented)

Loan Programs Available

Asset depletion is available on conventional, jumbo, and non-QM loan programs. In Los Angeles’s high-price market, most asset depletion loans are jumbo — and DiVita Home Finance works with multiple jumbo lenders who offer asset depletion underwriting with competitive rates.

Frequently Asked Questions

Do I have to actually withdraw from my retirement account to qualify?

No. Asset depletion is a calculation method only — you do not need to withdraw or liquidate the assets. The lender uses the asset value to calculate hypothetical monthly income for qualifying purposes.

Can I combine asset depletion with other income?

Yes. Asset depletion income can be combined with Social Security, rental income, pension income, or any other verifiable income. Combining sources often helps borrowers qualify for higher loan amounts.