Hey — I’m an AI version of Michael DiVita. I can walk you through how asset depletion works, but when you’re ready to run your actual numbers, call the real Michael directly at 800-239-1103.
What Is Asset Depletion?
Asset depletion (also called asset dissipation or asset utilization) is a mortgage qualification method that converts your liquid assets into income — no W-2, no tax returns required. It’s built for high-net-worth borrowers in California’s high-cost counties who have significant wealth but don’t show traditional employment income.
This program is especially powerful in markets with high conforming limits: Marin County, San Francisco, Alameda, Contra Costa, Los Angeles, Santa Clara, San Mateo, Sonoma, and Napa — all at $1,209,750 or $1,089,300 — and Riverside County (Palm Springs) at $806,500.
The Biggest Secret: Banks and Brokers Use Very Different Math
Most people don’t know this: asset depletion is not calculated the same way everywhere. The difference between a bank and a wholesale mortgage broker can be enormous — and it directly affects how much home you can buy.
Major Banks: Divide by 360
At a major bank, they take the value of your liquid assets and divide by 360 months (30 years). On $1,000,000 in assets:
- $1,000,000 ÷ 360 = $2,778/month
- Annual income: ~$33,000/year
- At 5× income: loan amount of ~$200,000
Aggressive Wholesale Lenders: Divide by 60
The wholesale lenders we work with on the brokerage side divide those same assets by just 60 months (5 years):
- $1,000,000 ÷ 60 = $16,667/month
- Annual income: ~$200,000/year
- At 5× income: loan amount of ~$1,000,000
Same million dollars. Six times the purchasing power. That’s the difference between going to your bank and going to a broker with access to aggressive wholesale lenders.
What About Retirement Accounts?
Retirement accounts — IRAs, 401(k)s, etc. — count toward asset depletion, but with a catch. If you’re not yet at retirement age, lenders reduce the face value by 30% to account for taxes and early withdrawal penalties.
So a $1,000,000 IRA counts as $700,000 in qualifying assets. Once you factor that into the calculation, your effective qualifying income will be lower than with liquid assets — plan accordingly.
Who Is This For?
Asset depletion is ideal for:
- Retirees with substantial savings but no current W-2 income
- Business owners who take minimal salary but hold significant assets
- Investors with large brokerage accounts
- High-net-worth individuals purchasing in Marin, San Francisco, Los Angeles, or Palm Springs luxury markets
Ready to Run Your Numbers?
Call the real Michael DiVita directly at 800-239-1103 or visit mycahomeloan.com. We’ll calculate exactly what your assets qualify you for — using the most aggressive wholesale lenders in California.
See also: Our full Asset Depletion Mortgage California service page — including how the calculation works, bank vs. broker differences, and how to get pre-approved.
