Asset Depletion Mortgage Sacramento | Retire or Invest Without W-2 Income

Sacramento attracts a growing population of Bay Area retirees, state government retirees, and high-net-worth individuals relocating from more expensive California markets. Many of these buyers have significant investment portfolios, pension income, or assets from the sale of a prior home — but limited monthly earned income. An asset depletion mortgage provides a path to homeownership that matches their actual financial picture.

Why Asset Depletion Works Well in Sacramento

Sacramento’s home prices — while rising — remain more accessible than coastal California. That means a borrower’s assets stretch further here. A $2M investment portfolio can support a larger Sacramento mortgage relative to home prices than the same portfolio would produce in Marin County or San Francisco. Retirees relocating from the Bay Area often find they can buy a comparable Sacramento home outright — or choose to preserve capital and use asset depletion financing instead.

Common Sacramento Asset Depletion Borrowers

• Bay Area retirees downsizing to Sacramento with proceeds from a high-value Bay Area home
• State government retirees with CalPERS pension income and supplemental investment savings
• Business owners who recently sold a business and are sitting on significant cash or investment assets
• Real estate investors with substantial equity and asset bases but limited personal income documentation

How It Works

Eligible assets — checking, savings, brokerage accounts, and retirement accounts (with applicable haircuts) — are divided by the remaining loan term to produce a monthly income figure. That income is used for mortgage qualification, either alone or combined with Social Security, CalPERS pension, rental income, or other verifiable sources. A $1.8M portfolio divided over 360 months = $5,000/month in qualifying income — tax-free from the asset calculation perspective.

Sacramento Loan Amounts

Sacramento County’s 2026 conforming limit is $806,500. Asset depletion is available both within and above this amount, making it viable across all Sacramento price points from Elk Grove to Land Park to Folsom.

Frequently Asked Questions

Can a CalPERS retiree use pension income combined with asset depletion to buy in Sacramento?

Yes — and this is a very common scenario. CalPERS pension income is stable, guaranteed, and highly valued by mortgage lenders. Combined with asset depletion income from investment accounts, most CalPERS retirees with modest portfolios can qualify for a Sacramento mortgage that comfortably covers the market.

Do I need to sell my Bay Area home before buying in Sacramento?

Not necessarily. Bridge loans, asset depletion financing, and certain jumbo programs allow you to purchase in Sacramento before your Bay Area sale closes. Call us to discuss the sequencing and which financing approach fits your timeline.