Los Angeles has more high-net-worth borrowers who don’t fit conventional income boxes than almost any market in the country — retired executives, entertainment professionals, business owners who retain earnings in their companies, and investors living on portfolio returns. Asset depletion qualification is specifically built for these situations. I’ve placed asset depletion loans for LA-area buyers for nearly 20 years. I’m Michael DiVita — DRE #01818285 | NMLS #323700, DiVita Home Finance, Tiburon, CA. Call me at (800) 239-1103.
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 with asset depletion?
No. Asset depletion is a calculation method only — you do not need to withdraw or liquidate any assets. The lender uses the asset value on your most recent statement to calculate a hypothetical monthly income for qualifying purposes. Your retirement accounts, investment accounts, and other assets remain untouched and continue to grow.
Can I combine asset depletion income with other income sources?
Yes. Asset depletion income can be combined with Social Security, rental income, pension income, W-2 income, or any other verifiable income source. Combining income sources often helps borrowers qualify for higher loan amounts than either source alone would support. For retirees with both Social Security and a large investment portfolio, combining both sources is standard practice.
What assets don’t qualify for depletion in a California jumbo loan?
Assets typically excluded from depletion calculations include real estate equity (illiquid), business assets or accounts receivable, unvested stock options or RSUs, assets held in trust with restrictions on distribution, and non-liquid alternative investments (private equity, hedge funds, collectibles). The key test is whether the asset can be converted to cash within a reasonable timeframe — liquid accounts and publicly traded securities generally qualify; illiquid assets don’t. Each lender has specific guidelines; DiVita Home Finance works with multiple jumbo investors and can match your asset profile to the most favorable underwriting.
Los Angeles Asset Depletion Mortgage Consultation
Free consultation. DiVita Home Finance — 40+ wholesale lenders.
DiVita Home Finance | NMLS #323700 | CA DRE #01818285
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DiVita Home Finance | Tiburon, CA | Licensed since 2007. DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
