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Santa Monica real estate runs $1.5M+ for single-family homes. Traditional income verification falls apart for retirees, trust fund recipients, and investors living off dividends.
Asset depletion lets lenders count 70% of your liquid assets as monthly income. A $2M portfolio becomes $11,600/month in qualifying income without touching employment history.
Asset Depletion Loans in Santa Monica
You need $500K minimum in liquid assets — stocks, bonds, mutual funds, or retirement accounts. Cash in checking counts but lenders prefer diversified holdings.
Credit scores start at 680. Expect 20-30% down depending on asset strength. The larger your portfolio relative to loan amount, the easier approval gets.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Santa Monica.
Santa Monica real estate runs $1.5M+ for single-family homes. Traditional income verification falls apart for retirees, trust fund recipients, and investors living off dividends.
Asset depletion lets lenders count 70% of your liquid assets as monthly income. A $2M portfolio becomes $11,600/month in qualifying income without touching employment history.
You need $500K minimum in liquid assets — stocks, bonds, mutual funds, or retirement accounts. Cash in checking counts but lenders prefer diversified holdings.
Most banks won't touch asset depletion. You need non-QM specialists who understand portfolio-based underwriting and won't panic over missing W-2s.
We work with 15+ lenders offering asset depletion across varying tiers. Rate spreads run 1-2% above conventional, but approval odds beat trying to force-fit traditional docs.
Santa Monica buyers using asset depletion usually fall into three buckets: early retirees from tech, trust fund beneficiaries, or investors parking money in real estate.
The math matters more than you think. Lenders divide assets by 360 months, then apply 70% haircut. A $1.8M portfolio yields $3,500/month — not enough for a $2M home without serious down payment.
Bank statement loans work better if you own a business with healthy deposits. DSCR loans beat asset depletion for investment properties that rent well.
Asset depletion shines when you're asset-rich but income-light — no business to document, no rental income to calculate. Just portfolio statements and credit score.
Santa Monica's luxury condo market sees heavy asset depletion use. Buyers downsizing from $5M homes in Pacific Palisades often have portfolios but no W-2 income.
HOA fees run $800-1,500/month in beachfront buildings. Lenders count those against your debt ratio, so factor that into portfolio size calculations early.
Stocks, bonds, mutual funds, and retirement accounts all count. Real estate equity and business assets don't. Lenders verify through recent brokerage statements.
Yes, lenders count 70% of IRA and 401(k) balances as qualifying assets. You don't withdraw the money — they just calculate it as monthly income.
With 25% down, you'd need roughly $2.4M in assets after down payment to qualify. The exact amount depends on credit score and debt load.
Sometimes. Lenders price on loan-to-value and credit more than portfolio size. But stronger asset position can unlock better LTV options.
Most lenders allow it. Social security, pensions, and rental income stack on top of calculated asset depletion to boost qualifying power.