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Asset Depletion Loans in Calabasas
Can I use my retirement account to qualify for an asset depletion loan?
Yes. Lenders divide your retirement account balance by 240 months to calculate qualifying income. A $600,000 IRA counts as $2,500 monthly income.
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Calabasas buyers often have significant home equity or retirement accounts but limited liquid cash. Asset depletion loans let you tap those assets to qualify without liquidating them.
The conforming limit in Los Angeles County for 2026 is $1,249,125. Most Calabasas purchases fall within this range, making asset depletion a practical path.
680+
Minimum Credit Score
240 months
Asset Calculation Period
17-21 days
Typical Closing Timeline
$1,249,125
2026 Conforming Limit
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Asset depletion loans require a strong credit score, typically 680 or higher. Lenders calculate your income by dividing eligible assets by 240 months.
Los Angeles County's median household income is $87,760 annually. In Calabasas, asset depletion bridges the gap for buyers whose traditional income falls short.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Calabasas.
Calabasas buyers often have significant home equity or retirement accounts but limited liquid cash. Asset depletion loans let you tap those assets to qualify without liquidating them.
The conforming limit in Los Angeles County for 2026 is $1,249,125. Most Calabasas purchases fall within this range, making asset depletion a practical path.
Asset depletion loans require a strong credit score, typically 680 or higher. Lenders calculate your income by dividing eligible assets by 240 months.
Rate check
Tell us the price range, down payment and credit range you are working with. We compare every lender we work with and show you the options side by side.
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Asset depletion loans are non-QM products offered by specialty lenders and brokers. They sit outside Fannie Mae and Freddie Mac guidelines, so underwriting is more flexible.
Closing timelines typically run 17 to 21 days for asset depletion loans. Rates and terms vary more than conventional loans, so shopping multiple lenders matters.
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Asset depletion loans make the most sense for Calabasas buyers with substantial net worth but minimal W-2 income. If you're a retiree, business owner, or downsizer with equity in another property, this program works.
If you have steady employment income that qualifies on its own, a conventional loan usually offers a better rate. The real advantage appears when your liquid savings are thin but your total assets are strong.
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Asset depletion loans count assets as income rather than requiring cash reserves. Conventional loans demand 20% down and liquid savings; asset depletion uses your net worth instead.
FHA loans require a lower down payment but charge mortgage insurance for life if you put down less than 10%. Asset depletion skips mortgage insurance entirely because lenders are protected by your documented assets.
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Calabasas attracts affluent buyers—many of them entrepreneurs, executives, and retirees—who have built wealth but may not have traditional employment income. Asset depletion loans align perfectly with this demographic.
The area also draws buyers relocating from other California markets who are downsizing from larger homes. These sellers often have substantial equity but want to preserve retirement savings.
FAQ
Yes. Lenders divide your retirement account balance by 240 months to calculate qualifying income. A $600,000 IRA counts as $2,500 monthly income.
No. Asset depletion loans use your net worth to qualify, not a traditional down payment. You may put down as little as 5% to 10%.
Most lenders require 680 or higher. Some may go lower with strong assets and documentation. Call to discuss your specific profile.
Typically 17 to 21 days. Because these are non-QM products, underwriting is more detailed than conventional loans. Asset verification takes time.
Usually yes. Asset depletion skips mortgage insurance entirely, while FHA charges MIP for life if down payment is under 10%. Rates depend on your lender.
Programs for first-time buyers that allow lower down payments and more forgiving credit and income rules.
Explore refinancing options to lower your rate, tap equity, or switch loan terms.
SRK CAPITAL in Los Angeles County
Our team of licensed mortgage brokers works Los Angeles County every week. Tell us where you are in the process and we will map out the loan, the timeline and the money you need at closing, with no obligation.
What working with us looks like
Licensed mortgage brokers
You talk with a broker, not a call center, from the first question to closing day.
17-21 day typical close
Most purchase loans close in 17-21 days once your paperwork is in.
Every county in California
We work across the state, including Los Angeles County, so local limits and rules are already familiar.
Financing solutions for rental properties, fix-and-flip projects, and real estate portfolios.
Mortgage programs with alternative income documentation for business owners and freelancers.
Federally insured or guaranteed programs (FHA, VA, USDA) that let lenders accept lower credit scores and smaller down payments.
Traditional mortgage options meeting standard lending guidelines with various term structures.
Alternative lending programs for borrowers who need flexible documentation or unique loan structures.
This page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, terms, and program availability can change and vary by borrower and property. Consult a licensed mortgage professional for guidance on your scenario.