Why California Investors Use Asset Depletion Loans
California is home to a large population of high-net-worth individuals, retirees, and self-employed entrepreneurs—many of whom find it difficult to qualify for conventional loans due to low “on paper” income. Whether you're buying a luxury home in Napa or expanding your investment portfolio in Los Angeles, an asset depletion mortgage lets you qualify based on your liquid assets instead of tax returns.
What Is a California Asset Depletion Mortgage?
A California asset depletion mortgage—also called an asset-based loan—allows you to qualify for a mortgage using investments, savings, or retirement funds instead of employment income.
Lenders calculate an “imputed income” by dividing your total liquid assets by 60–120 months, depending on program terms.
This is especially helpful for:
- Real estate investors who show minimal taxable income
- Retirees with no active income
- Entrepreneurs or business owners with fluctuating earnings
- Trust beneficiaries or newly liquid individuals
