Asset Depletion Loans

An Asset Depletion loan allows you to qualify for a mortgage using your liquid assets (savings, investments, retirement accounts) instead of traditional employment income. The lender calculates a 'monthly income' by dividing your eligible assets by a set number of months, typically 60-84 months.

Lenders divide your eligible assets by a depletion term (usually 60, 72, or 84 months) to calculate monthly income. For example, $1,000,000 in assets divided by 84 months = $11,905/month qualifying income. Different asset types may have different eligibility percentages applied.

Eligible assets typically include: checking/savings accounts (100%), stocks and bonds (100% or discounted), mutual funds (100% or discounted), retirement accounts like 401k/IRA (60-70% after penalty consideration), and other liquid investments. Real estate equity and business assets are generally not eligible.

No, you don't need to sell or liquidate your assets. Asset Depletion is simply a calculation method to demonstrate your ability to make mortgage payments. Your assets remain invested and continue to grow. You only need to document that the assets exist and are accessible.

Asset Depletion loans typically require higher credit scores than other Non-QM programs, usually 680 or higher. Some lenders may accept 660+ with larger down payments. Higher credit scores qualify for better rates and more favorable depletion terms.

Yes, many lenders allow you to combine asset depletion income with other income sources like Social Security, pension, rental income, or part-time employment. This can help you qualify for a larger loan amount.

Asset Depletion loans are available up to $3 million or more with some lenders. Since qualification is based on assets, borrowers with substantial portfolios can qualify for jumbo loans. The loan amount depends on your total eligible assets and the depletion calculation.

Asset Depletion is ideal for retirees with substantial savings, high-net-worth individuals between jobs, trust fund beneficiaries, early retirees (FIRE), divorced individuals with settlement assets, and anyone with significant liquid assets but limited traditional income documentation.