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Malibu's coastal real estate commands premium pricing, with homes regularly exceeding the 2026 conforming limit of $1,249,125. Buyers here often have substantial retirement accounts but modest monthly income on paper.
The program works for retirees, semi-retired professionals, and anyone whose net worth exceeds their W-2 income. Instead of waiting for Social Security or pension distributions, you can tap accumulated assets to prove repayment capacity.
680+
Minimum Credit Score
$500,000+
Typical Liquid Assets
15% to 25%
Down Payment Range
45-60 days
Closing Timeline
$1,249,125
2026 Conforming Limit
Asset Depletion Loans in Malibu
Asset depletion loans require a solid credit score (typically 680+) and substantial liquid assets. The lender divides your accessible savings by 360 months to create a qualifying income stream.
Los Angeles County's median household income of $87,760 is a reference point, but asset depletion borrowers often exceed that significantly through accumulated wealth. The program doesn't require you to earn that income monthly—your assets do the work.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Malibu.
Malibu's coastal real estate commands premium pricing, with homes regularly exceeding the 2026 conforming limit of $1,249,125. Buyers here often have substantial retirement accounts but modest monthly income on paper.
The program works for retirees, semi-retired professionals, and anyone whose net worth exceeds their W-2 income. Instead of waiting for Social Security or pension distributions, you can tap accumulated assets to prove repayment capacity.
Asset depletion loans require a solid credit score (typically 680+) and substantial liquid assets. The lender divides your accessible savings by 360 months to create a qualifying income stream.
Asset depletion loans are a niche product. Most retail banks don't offer them; portfolio lenders and specialized mortgage banks do. California has a handful of lenders who actively underwrite these loans, but they're not household names.
Underwriting is slower than conventional because the lender must verify asset history, often requesting 2-3 years of statements. Closing typically takes 45-60 days. The trade-off is worth it for buyers who can't qualify any other way.
Asset depletion loans make sense in Malibu when you have $500,000+ in liquid assets but your W-2 income falls short. If you're semi-retired or living off investments, this program is built for you.
The program doesn't make sense if you have strong W-2 income or can qualify conventionally. Rates run higher and closing takes longer.
Conventional loans require documented income and typically won't go above 43% debt-to-income ratio. Asset depletion loans ignore your W-2 and use your savings instead. If you're retired or semi-retired, conventional simply won't work.
Jumbo loans (above the conforming limit) also require strong income documentation and typically 20% down. Asset depletion jumbo loans let you substitute assets for income.
Malibu's coastal lifestyle attracts retirees and semi-retired professionals from across California. Many move here after selling a primary residence or retiring from a career.
The area's median home price and property values mean most purchases exceed conforming limits. Asset depletion becomes a practical necessity for buyers whose net worth is substantial but whose monthly income is low or irregular.
No. Semi-retired buyers, freelancers, and anyone with irregular income qualify. The program counts your savings as income, not your job status. You could work part-time and still qualify if your assets are strong enough.
Typically $500,000 or more, depending on the loan amount and lender. The lender divides your assets by 360 months to calculate qualifying income. Larger assets create higher qualifying income, which improves your debt-to-income ratio.
Savings accounts, money market accounts, stocks, bonds, and mutual funds count. Retirement accounts (401k, IRA) may count depending on the lender. Real estate, vehicles, and collectibles typically don't. Ask your lender for a full list.
No. The lender calculates qualifying income from your assets but doesn't require you to actually spend them. Your monthly payment comes from whatever income source you choose. Assets remain intact.
Typically 45-60 days. The lender needs to verify 2-3 years of asset statements, which takes longer than standard underwriting. Plan for a slower timeline than conventional loans.