I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.
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 $832,750. 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. The combination of guaranteed pension plus asset depletion often produces strong qualifying income with minimal documentation complexity.
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. The right approach depends on your asset position, timeline, and whether you need sale proceeds for the Sacramento down payment. Call DiVita Home Finance to discuss the sequencing — it’s a common situation we handle regularly for Bay Area-to-Sacramento relocations.
What types of assets qualify for asset depletion mortgage income in California?
Eligible assets typically include checking and savings accounts, brokerage/investment accounts, and retirement accounts (401k, IRA — usually with a 30–40% haircut to account for taxes and penalties). Illiquid assets like real estate equity or restricted stock generally don’t count. Each lender has slightly different guidelines, so the specific eligible balance varies — DiVita Home Finance works with 40+ wholesale lenders to find the program with the most favorable asset calculation for your situation.
What is the 2026 conforming loan limit in Sacramento County?
Sacramento County’s 2026 conforming loan limit is $832,750. Loans above this amount are jumbo loans with different underwriting requirements. Asset depletion financing is available at both conforming and jumbo loan amounts — DiVita Home Finance can structure either type based on your purchase price and asset profile.
Related Reading
- Bank Statement Loans: Alternative Income Qualification
- Sacramento Mortgage: Rates, Programs & Local Experts
- Self-Employed Mortgage in California
- Bridge Loans California
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | Licensed since 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
