California Asset Depletion Mortgage Programs

An asset depletion loan is a non-QM mortgage program in which qualifying income is calculated from a borrower's eligible liquid assets rather than from W-2s, pay stubs, or tax returns. Advanced Funding Solutions is a mortgage brokerage that works with a network of wholesale lenders offering asset-depletion programs across multiple investors.

How Asset Depletion Income Is Generally Calculated

Most asset depletion programs apply a percentage factor to eligible liquid assets and divide the result by the loan term to produce a monthly qualifying income figure. Specific factors, treatment of retirement vs. non-retirement accounts, and minimum age requirements for retirement-account inclusion are set by each funding lender and program. Final qualifying income, loan amount, and program eligibility are determined by the funding lender during underwriting.

Eligible Asset Types Vary by Program

Eligible asset categories typically include personal checking and savings, money market accounts, taxable brokerage accounts, certificates of deposit, and, where program guidelines allow, retirement accounts subject to age requirements. Treatment of trust accounts, business accounts, and joint accounts varies by funding lender. Real estate equity, business equity, and certain illiquid holdings are generally not eligible. Final asset eligibility is determined by the funding lender.

Asset depletion loan rates, points, and closing costs are determined by the funding lender at the time of application based on credit profile, loan-to-value, occupancy, property type, asset profile, and program. Rates change without notice and are disclosed in writing during the formal application process as required by state and federal law. Any rate or cost figures discussed before a complete application are illustrative only and are not a quote, rate lock, or commitment to lend.

Asset Depletion vs. Other Non-QM Programs

Asset depletion and other alternative-documentation programs serve different income profiles. Asset depletion is generally appropriate for borrowers with substantial liquid wealth but limited active income, such as retirees or borrowers in transition. Self-employed borrowers with documentable deposit activity often cross-review asset depletion against a bank statement program, and asset-rich real estate investors sometimes weigh both against a DSCR investor loan where the property's rental income drives qualifying. For borrowers age 62 or older, a reverse mortgage may also be reviewed as a home-equity access alternative. Some programs may allow layering of multiple income sources. Final qualifying calculations are set by the funding lender.