For asset-rich, low-reported-income buyers, an asset-depletion loan can unlock financing on a higher-priced SCV home. This guide explains the concept in general terms.
General education, not advice. This page explains financing, property-tax, and special-assessment concepts for Santa Clarita Valley buyers and homeowners. It is not financial, tax, or legal advice and it is not a loan offer. Mortgage rates and program terms change constantly, and tax rules depend on your specific facts. Confirm every figure and qualifying question with a licensed lender, CPA, or attorney before you act.
The core idea
Instead of relying on wages, the lender takes a portion of your qualifying liquid assets and divides them over a defined number of months to create an imputed monthly income for qualifying. This can help buyers whose wealth is in accounts rather than paychecks.
Who it suits
- Retirees living on savings rather than salary.
- Buyers between ventures with substantial liquid assets.
- High-net-worth buyers whose tax returns show low income relative to wealth.
How qualifying assets are treated
Lenders typically count a portion of eligible liquid assets (often after a haircut, and with retirement-account access rules), then divide by a set term. Each lender's formula and eligible-asset list differ.
Caveats
Asset-depletion programs are niche, with their own rate and reserve requirements. Not every lender offers them, and terms vary widely.
SCV context
These loans appear most often at higher SCV price points, frequently in jumbo territory. Property tax including Mello-Roos still factors into qualifying; SCV Mello-Roos varies by tract — verify per parcel.
Rates move
As a rough frame, 30-year fixed rates have hovered around ~6.5–7.0% as of 2026, but rates change daily — treat any number you see as stale and get a current quote from a licensed lender.
Explore asset-based qualifying with Brian
Brian Cooper works with lenders who offer asset-depletion programs for higher-priced SCV homes. Contact Brian or call (805) 723-2498.
Frequently Asked Questions
What is an asset-depletion loan?
A loan that lets you qualify using liquid assets instead of traditional income — the lender converts qualifying assets into an imputed monthly income for underwriting.
Who uses asset-depletion loans?
Often retirees and high-net-worth buyers with substantial savings but modest reported income, who struggle to qualify on income alone.
How do lenders calculate the income?
They generally count a portion of eligible liquid assets and divide by a set number of months. Formulas and eligible assets vary by lender.
Are these loans common?
No, they are niche programs offered by some lenders, often in jumbo territory, with their own rate and reserve requirements.
Does Mello-Roos still matter?
Yes. Property tax including Mello-Roos factors into qualifying. SCV Mello-Roos varies by tract; verify per parcel.
Is this a loan offer?
No. This is general education, not a loan offer or financial advice. Confirm with a licensed lender.
