The Quick Read: Yes, an asset-based mortgage can cover a California jumbo purchase on a principal residence or second home, either when your eligible assets equal the entire loan amount or when your assets convert into enough monthly qualifying income to carry the payment, subject to underwriting. The path you use decides the leverage, the loan ceiling, and which assets count. Lendmire arranges these loans as a broker through select lenders in its wholesale network.
- Assets-only path: eligible assets, after credit percentages, must equal or exceed the whole loan, with loans up to $4,000,000 and no income documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, with loans from $125,000 to $3,500,000.
- Leverage is the same on both paths for purchases: up to 80% on a primary residence or second-home purchase on both the assets-only path and the depletion path.
- Assets are documented on both paths: the income is not, but the statements are.
- Rental purchases are different: investment property is only eligible on the depletion path, at lower leverage, and a rental buyer often does better with a DSCR loan.
Which Path Fits a Cash-Heavy, Income-Light Buyer?
The assets-only path fits a buyer whose liquid balances exceed the loan. The depletion path fits a buyer whose assets are large but whose loan is bigger than the balances alone could cover outright. A borrower is qualified on one path at a time, and the two tables never blend.
Think about who actually uses this. Retirees living on a portfolio. Founders who just sold a business. People who received an inheritance or settlement. Early-retired professionals. Their balances are large and their documented income is small, so a standard jumbo file reads weak even though the borrower is not.
On the assets-only path, the lender adds up eligible assets after applying a credit percentage to each. If that total equals or exceeds the entire loan amount, the file is reviewed on assets alone. No employment or income is documented. The lender’s ability-to-repay review rests on the assets themselves.
On the asset depletion path, the lender takes usable assets and divides them by 60 months. That figure is monthly qualifying income. It then has to carry the full housing payment and your other debts through the debt-to-income test. This path is the more flexible one on loan size, because you are not required to hold the whole loan in assets.
Both paths are consumer mortgages. These programs are available through select programs and are underwritten individually.
What Does “Jumbo” Mean in California?
A loan is jumbo when it exceeds the conforming loan limit for the county. The Federal Housing Finance Agency sets that limit each year for the loans Fannie Mae and Freddie Mac may buy, and it announces the new figures each November, per its conforming loan limit release.
The current baseline limit for a one-unit home is $832,750, and the ceiling in high-cost areas is $1,249,125, per Orrick’s summary of the FHFA announcement. Many coastal California counties sit at that ceiling. Inland counties often sit at or near the baseline.
That means the same loan can be high-balance conforming in one county and jumbo in the next. For an asset-based borrower, the county label matters less than you might expect. The conforming limit governs what agency-backed loans can be sold to the agencies. It does not cap the asset-based program, which runs up to $4,000,000 on the assets-only path and $3,500,000 on the depletion path.
Real California purchase prices often exceed even the high-cost ceiling. A large share of coastal purchases therefore land in jumbo territory no matter how the buyer qualifies. The practical question is not whether the loan is jumbo. It is whether your assets, your credit, and your leverage fit one of the two paths.
How the Assets-Only Path Counts Your Balances
The assets-only path gives full credit to most liquid accounts and a slight discount to retirement money under age 59½. Brokerage accounts, certificates of deposit, money market, and savings all count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
Here is the shape of the arithmetic, which is illustrative only. The lender’s own calculation governs.
- An $800,000 loan is the target.
- You hold $330,000 in brokerage accounts, which counts at 100%, so $330,000.
- You hold $300,000 in a 401(k) and are under 59½, which counts at 90%, so $270,000.
- You hold $200,000 in savings, which counts at 100%, so $200,000.
- Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone.
Two practical limits matter here. First, leverage on this path is up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Second, the 80% purchase loan is only part of the cash picture. The down payment comes from funds that are separate from the balances you count against the loan, so a buyer needs more than the loan amount in total assets. Funds spent on the down payment and closing costs generally cannot be counted twice.
Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so treat any cash-out plan on this path as something to confirm file by file.
Credit has a published floor of 600 on this path. A score at that level does not mean approval. Housing payment history is reviewed, and one 30-day late in the last twelve months is considered case by case.
How the Asset Depletion Path Turns Balances Into Income
The depletion path applies a haircut to each asset class, adds the results, and divides by 60 months. That monthly figure then runs through the debt-to-income test alongside the new payment and your other debts.
The haircuts are steeper than on the assets-only path, because the lender is converting volatile assets into a stable income stream:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Here is the illustrative shape, again subject to the lender’s own calculation. Say you hold $1,500,000 in securities, which counts at 80%, so $1,200,000, and $300,000 in cash, which counts at 100%, so $300,000. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path has minimums that a buyer should check before anything else. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need no less than $250,000 in liquid assets. If you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Credit on this path follows the lender’s matrix for score and loan amount, rather than a single published floor. A first-time investor on this path needs a 700 score. A housing event, such as a foreclosure or short sale, needs four years of seasoning, and multiple bankruptcies are not eligible.
Side-by-Side: The Two Paths
| Factor | Assets-only path | Asset depletion path |
|---|---|---|
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage, primary or second home | Up to 80% | Up to 80% |
| Refinance leverage, primary or second home | Up to 75% | 80% rate-and-term, 60% cash-out |
| Investment property | Not published as eligible | 65% purchase or rate-and-term, 60% cash-out |
| Income documented | None | Derived from assets |
| Credit | 600 minimum | Lender’s matrix |
| Statements | 60 days seasoning, two months per account | 120 days old plus one within 45 days |
Every figure above is a ceiling or floor, never an offer, and each is subject to underwriting.
Which of Your Assets Actually Count?
Standard liquid assets count on both paths, but California buyers often hold wealth in forms that do not. Equity compensation is the usual trouble spot.
| Asset | Assets-only path | Asset depletion path |
|---|---|---|
| Brokerage account | 100% | 80% as securities |
| Savings, money market | 100% | 100% as cash |
| Certificates of deposit | 100% | 100% |
| 401(k) or IRA | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
| Stock options | Not listed | Not eligible |
| Non-vested restricted stock units | Not listed | Not eligible |
| Foreign funds, cash on hand | Not listed | Not eligible |
Cryptocurrency, precious metals, collectibles, and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them to a cash balance in a regulated account and let that balance season. The lender then reviews where the money came from. Business accounts count only to the extent of your ownership share, and cash-out proceeds never count as qualifying assets.
Seasoning is where files stall. On the assets-only path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning. In every case the assets are documented. “No income documentation” never means “no documentation.”
Why California Files Run Into the Ceiling
The loan ceiling and the haircuts, not the “jumbo” label, are what limit a California buyer. On the assets-only path, the top loan is $4,000,000. A buyer financing at 80% on a purchase reaches that ceiling at a price well into the multi-million range, so most California homes fit below it. The harder constraint is liquidity, because the buyer needs eligible assets at or above the entire loan, plus the down payment.
The depletion path caps loans at $3,500,000 but asks less of the balance sheet. The trade is leverage and the haircuts. A buyer with $1,500,000 in usable assets produces a sizable monthly qualifying income, and a large California payment plus property taxes and insurance can use up that income fast. Run the debt-to-income test before assuming the path works.
A few tradeoffs come up often in practice:
- A buyer holding mostly securities usually does better on the depletion path, because the assets-only path wants the balances themselves to match the loan.
- A buyer with large cash and CDs does better on the assets-only path, where they count at 100%.
- A buyer holding mostly unvested equity compensation has little usable here. Options and non-vested restricted stock units are not eligible on the depletion path.
- A buyer who would otherwise sell appreciated holdings to fund a purchase may prefer borrowing against them. Tax treatment varies, so consult a qualified professional.
The honest limit is the top of the market. Above $4,000,000, this program does not apply. Buyers at those prices need a different structure. Lendmire’s piece Super Jumbo DSCR Pledged-Asset Rules on a Purchase vs Cash-Out Refinance covers one such route, and the question of how reserves differ on a purchase versus a refinance comes up on files in that range too.
When the Property Is a Rental, Does an Asset-Based Mortgage Still Fit?
For a rental purchase, a DSCR loan is usually the better fit. The asset depletion path does allow investment property, but only at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The assets-only path does not publish investment property as eligible at all.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The federal summary of the Truth in Lending Act treats credit to acquire non-owner-occupied rental property as business-purpose credit. A buyer who will live in the property is not a DSCR candidate.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal income and your asset balances are not the main test, so a large portfolio does not need to be converted into income. The tradeoff is that coastal California prices are high relative to rents, so coverage is often thin. Programs below 1.00 coverage are available through select lenders in the network, but the leverage and terms adjust to match. Lendmire’s complete DSCR loans guide walks through how that coverage ratio is built.
The simple rule is this. If you will live in the home or use it as a second home, use the asset-based path that fits your balance sheet. If you are buying it to rent, test DSCR first and use the asset depletion path as the backup.
Key Terms Defined
Assets-only path: a qualifying method where eligible assets, after credit percentages, must equal or exceed the whole loan amount, with no income documented.
Asset depletion path: a qualifying method that divides usable assets by 60 months to create monthly income for the debt-to-income test.
Usable assets: the balance of each account after the program’s credit percentage or haircut is applied.
Seasoning: the length of time funds must sit in an account, shown by statements, before the lender counts them.
Jumbo loan: a loan above the county’s conforming loan limit.
Debt-to-income test: the comparison of your monthly debts, including the new payment, against your qualifying income.
What Typically Derails These Files
Most delays trace back to documents, not to qualifying math.
1. Unseasoned funds. A large transfer into a new account shows up as a recent deposit, and the lender will ask where it came from and may not count it until it ages.
2. Counting an asset twice. Money used for the down payment or closing costs cannot also support qualifying.
3. Ineligible asset classes. Options, unvested RSUs, crypto, and foreign funds are the usual surprises.
4. Mismatched path. A borrower chases the assets-only path with balances that fit the depletion path, or the reverse.
5. Stale statements. The depletion path wants statements at least 120 days old plus one within 45 days.
Cleaning up these items before the file goes in gives the lender fewer preventable gaps to review. It does not guarantee approval.
Frequently Asked Questions
Can I use stock options or unvested RSUs to qualify?
No, not on the depletion path, where stock options and non-vested restricted stock units are not eligible. Once shares vest and sit in a brokerage account, they can count as securities at 80% on the depletion path, or at 100% as a brokerage account on the assets-only path.
Is there a loan size too big for an asset-based mortgage?
Yes. The assets-only path goes up to $4,000,000, and the depletion path runs from $125,000 to $3,500,000. Nothing above $4,000,000 is available. Both paths remain subject to underwriting and the lender’s matrix.
Do I need to show income?
Not on the assets-only path, where no employment or income is documented. On the depletion path, income is derived from your assets and tested against your debts. You can also supplement documented income with asset-derived income up to a 45% debt-to-income ratio. Your assets are documented either way.
Can I use this for a rental purchase in California?
Only on the asset depletion path, at up to 65% on a purchase. Most rental buyers compare it with a DSCR loan, which qualifies primarily on the property’s rental income covering the payment, subject to lender guidelines.
Does a high county limit change whether I can use this program?
No. The county limit decides whether a loan is high-balance conforming or jumbo, but the asset-based program has its own loan ceilings and does not depend on it. The limit still matters when you compare this program with a conventional or high-balance alternative.
Next Step
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Lendmire’s consumer mortgage lending is licensed in 16 states, California among them, and every file is placed through select lenders and underwritten individually.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. FHFA conforming loan limit release
2. Orrick InfoBytes summary of the FHFA limit increases
3. CFPB Truth in Lending Act summary
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · How Asset Depletion Mortgage Eligible Assets Work on a Jumbo Loan · Asset Qualifier Mortgage vs Bank Statement Mortgage
Guides: Asset-Based Mortgage in California
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.