Asset Depletion Loans in San Diego: Qualify on What You Own, Not What You Earn
An asset depletion loan, also called asset-based or asset utilization lending, lets you qualify for a mortgage by treating eligible liquid assets as income. The lender divides your qualifying assets over a set number of months to calculate monthly income for mortgage approval. You may qualify without a traditional paycheck or selling investments. Mission Pacific Mortgage structures asset depletion loans for retirees, investors, and high-net-worth buyers across San Diego and California.
Why Consider Asset Depletion?
Eligible savings and investments help establish qualifying income.
Designed for eligible borrowers with substantial assets but limited earned income.
Assets used for qualification generally do not need to be sold or pledged.
Eligible retirement account balances may count under program-specific rules.
Is an Asset Depletion Loan Right for You?
Asset depletion financing may be a good fit when your wealth is held in savings, investments, or retirement accounts rather than traditional employment income.
Retirees & Early Retirees
You have substantial savings or investments but little or no regular employment income.
Business Owners Between Ventures
You've recently sold a company, are between business ventures, or have significant assets without a consistent paycheck.
Investors & Trust Beneficiaries
Your wealth is held in investment or eligible trust accounts and may not appear as W-2 or 1099 income.
Borrowers Declined for Low Income
A traditional lender declined your mortgage because your documented income was too low, despite substantial assets.
How Are Assets Converted Into Income?
Asset depletion programs look at your eligible account balances and calculate a monthly income amount for loan qualification.
The lender may adjust the value of certain investments or retirement accounts, then divide the eligible amount over a program-specific number of months.
This is a qualifying income calculation. It does not mean you actually receive that amount each month or must withdraw it from your accounts.
$1,200,000 divided by 120 months.
This is a math illustration, not a specific loan offer. Actual programs use different division periods and asset eligibility rules. Funds needed for closing, reserves, or other obligations may be deducted before calculation.
How Asset Depletion Loans Work
We review your eligible financial assets and determine how they can support your mortgage qualification.
Review Your Financial Assets
We review checking, savings, brokerage accounts, and eligible retirement balances to calculate the assets available for qualification.
Calculate Monthly Qualifying Income
Eligible assets are adjusted under the lender's rules and divided over a specified period to produce a monthly qualifying income figure.
Keep Your Investments in Place
Assets used only for the qualification calculation generally remain in your accounts without being sold, moved, or pledged.
Review Your Complete Financial Plan
We combine eligible asset-based income with any qualifying pension, Social Security, or rental income and review the proposed mortgage against your long-term financial plan.
What Assets Can Be Used to Qualify?
Different lenders accept different account types. Here are common categories that may be considered.
Checking & Savings
Eligible cash balances held in checking, savings, and money market accounts.
Brokerage & Investment Accounts
Eligible stocks, bonds, mutual funds, ETFs, and other marketable investments.
Retirement Accounts
Qualifying IRAs, 401(k)s, and other retirement balances, sometimes counted at a reduced percentage.
Retirement assets may be discounted depending on age, account accessibility, and program requirements. The lender determines which assets count and at what percentage.
Asset Depletion vs. Pledged Asset Loans
Both options involve your financial assets, but they serve different purposes in mortgage financing.
Asset Depletion Loan
Eligible savings and investment balances are used to calculate monthly qualifying income, rather than securing the mortgage as collateral.
Pledged Asset Loan
Eligible investments are pledged as additional collateral to support the mortgage, potentially reducing cash required at purchase.
Depending on the lender and loan structure, these strategies may sometimes be combined.
What You'll Need to Get Started
Asset depletion loans focus on documented account balances, credit, and the proposed mortgage structure.
We'll review which accounts may qualify and determine whether additional retirement or income documentation is needed.
Documents to Prepare
- ✓ Recent checking and savings account statements
- ✓ Brokerage and investment account statements
- ✓ Eligible retirement account statements
- ✓ Documentation of any pension, Social Security, rental, or other income
- ✓ Credit information and authorization for review
The Loan Three Banks Declined.
Explore a case study involving a borrower who obtained a $1.6 million mortgage through an asset-based qualification strategy while keeping a $3.8 million investment portfolio intact.
Read the Full Case Study →Figures are based on the supplied case study description. Results depend on individual borrower qualifications and loan program availability.
Asset Depletion Loan FAQs
Answers to common questions about qualifying for a mortgage using savings and investments.
Do I have to sell my investments to qualify?
No. Asset depletion generally uses eligible account balances to calculate qualifying income. The assets used for that calculation can typically remain invested. However, you still need to satisfy down payment, closing cost, and reserve requirements.
Can retirement accounts count?
Usually, yes. Eligible retirement accounts may count toward asset depletion qualification. Some lenders apply a reduced percentage based on your age, withdrawal access, and program requirements.
How is this different from a pledged asset loan?
An asset depletion loan uses eligible assets to calculate monthly income for mortgage qualification. A pledged asset loan uses eligible investments as additional collateral. Depending on the lender, the two approaches may sometimes be combined.
My bank declined me because my income is too low. Could this work?
Possibly. Asset depletion financing is designed for borrowers whose substantial assets may support a mortgage even when their traditional income is limited. Send us your situation, and we'll review the available options.
Can I use asset depletion financing for a refinance?
Yes. Asset depletion programs may be available for eligible home purchases and refinances. Available refinance structures depend on the lender, property, credit, equity, and asset balances.
Explore Mortgage Options Based on Your Assets
If you have substantial savings or investments but limited traditional income, Robert can help review whether an asset depletion mortgage fits your financial situation and long-term plans.
Discuss Your Loan Options →Important Disclosure: Asset depletion and asset utilization mortgages are subject to lender approval, credit, asset verification, reserve, down payment, and property requirements. Qualifying asset values may be reduced based on account type, market risk, age, access restrictions, and program guidelines. Funds needed for closing or required reserves may be excluded from the calculation. Calculated qualifying income is not actual investment income and does not guarantee loan approval. Although assets used for qualification typically do not need to be sold or pledged, the borrower remains responsible for all loan payments. Program availability and terms vary.
