Write-Offs Hurt You
Deductions that lower your tax bill also shrink the income lenders see.
Asset Depletion Mortgage Loans
Asset Depletion Loans: Qualify on Your Assets, Not Your Income
Asset depletion loans let high-net-worth borrowers and retirees turn liquid assets (stocks, bonds, savings, and retirement accounts) into qualifying mortgage income. No W-2s, no business returns, and your investments stay invested.
No credit impact to explore your options. Answer Home Loans, Inc. NMLS #1729528
How assets become income
ExampleEligible assets$2,500,000
Less down payment & reserves− $340,000
Eligible asset pool$2,160,000
Divided by 360 months÷ 360
Qualifying monthly income$6,000
Illustrative example only. Lenders differ in which assets count, how retirement accounts are discounted, and the term used.
- No Tax Returns Required
- Assets Stay Invested
- Retirees & High-Net-Worth
- Licensed Broker · NMLS #1729528
The problem
The Tax-Return Trap That Blocks Wealthy Borrowers
Traditional underwriting was built for salaried employees with predictable W-2 income. If you're self-employed, a business owner, or retired, the financial discipline that built your wealth can work against you at the bank.
Every legitimate deduction lowers your taxable income, and lenders use taxable income, not what you actually earn or hold, to judge your ability to repay.
Asset depletion loans change the question. Instead of “How much did you earn last year?” lenders ask “How much do you have?”
Irregular Income Cycles
Commissions, distributions, and variable business income rarely show your full financial strength.
Retirees Hit the Same Wall
Even with substantial savings, retirees taking small distributions are often denied for low income.
The Solution Exists
Asset depletion underwriting is designed for borrowers with substantial liquid net worth.
How it works
Turning Assets Into Qualifying Income
Asset depletion is a lender-recognized method that converts your liquid and investable assets into a calculated monthly income, without requiring you to liquidate or withdraw anything.
Example calculation
Eligible assets$2,160,000
Loan term÷ 360 months
Qualifying income$6,000/mo
- 1
Document Your Eligible Assets
Provide statements for checking, savings, brokerage, stocks, bonds, mutual funds, money market funds, and eligible retirement accounts, which are typically counted at 60–70% of their value.
- 2
Calculate the Eligible Asset Pool
The lender totals your eligible assets, applies any discounts, and subtracts the required down payment and reserves.
- 3
Divide by the Loan Term
The remaining total is divided by the loan term in months, typically 360 for a 30-year mortgage, to produce a monthly income figure for the debt-to-income calculation.
- 4
Qualify Based on That Income
The calculated income is used like earned income. Together with your credit and the property details, it sets your maximum loan amount, with no tax returns required.
Key benefits
Built for Borrowers Whose Wealth Speaks Louder Than Their Taxes
Structured for people who saved diligently, invested strategically, and built real wealth.
No Tax Returns Required
Qualify without federal tax returns, so write-offs no longer count against you.
Liquid Assets Count as Income
Stocks, bonds, savings, money market, and brokerage accounts all count, and you keep them invested.
Retirement Accounts Eligible
IRAs, 401(k)s, and SEP-IRAs typically count at 60–70% of their value.
Ideal for Retirees
No employment required. Retirees can use their portfolio to establish qualifying income.
High-Net-Worth Friendly
The more eligible assets you hold, the higher your calculated income and buying power.
No Liquidation Required
Assets are used mathematically. You never have to sell investments or close accounts to qualify.
Program requirements
Do You Qualify? Here's What Lenders Look For
Requirements vary by lender and loan structure, but most asset depletion programs share these benchmarks.
Credit Score, Typically 620+
Most programs start around 620, with better pricing available at 700 and above.
Enough Assets After Closing
After down payment and closing costs, remaining eligible assets must generate the income needed for your loan.
A Larger Down Payment
Most asset depletion loans are non-QM and require a larger down payment than conventional loans. Amounts vary by program.
2–3 Months of Statements
Recent statements for every eligible account (brokerage, savings, retirement) to verify the asset pool.
Eligible Asset Types
Checking, savings, money market, brokerage, stocks, bonds, mutual funds, ETFs, and retirement accounts (often 60–70% of value).
Debt-to-Income, Typically 43–50%
Your calculated asset income is used for DTI. Many programs allow up to 43–50% depending on the file.
Primary, Second Home, or Investment
Available for primary residences, vacation homes, and investment properties, depending on program guidelines.
Ineligible Assets
Business accounts, illiquid assets like real estate equity or private equity, restricted stock options, and irrevocable-trust assets typically don't count.
FAQ
Frequently Asked Questions About Asset Depletion Loans
Qualify using your assets, not your income. Financing built for retirees and high-net-worth borrowers.
What exactly is an asset depletion loan?
An asset depletion loan, also called an asset dissipation loan, is a mortgage that qualifies you using your liquid assets instead of, or in addition to, employment income. Your eligible assets are divided by the loan term to produce a calculated monthly income used in underwriting. No paychecks, W-2s, or tax returns are required.
Do I have to liquidate my assets to use this loan?
No. Your assets are used mathematically to calculate qualifying income. You're never required to sell investments, close accounts, or make withdrawals as a condition of approval, so your portfolio stays invested.
Which retirement accounts count toward qualifying assets?
Traditional IRAs, Roth IRAs, 401(k)s, 403(b)s, and SEP-IRAs are typically eligible. Because withdrawals may carry penalties or taxes, most lenders count them at 60–70% of their balance, and some credit a higher percentage if you're 59½ or older. Vested, unrestricted accounts are generally eligible; restricted or locked accounts are not.
What credit score do I need to qualify?
Most asset depletion programs start around a 620 credit score, while lenders offering the most favorable terms typically look for 700 or above. A stronger credit profile combined with a substantial asset pool generally earns the best terms.
How much can I borrow with an asset depletion loan?
Your loan amount depends on your calculated monthly income, debt-to-income ratio, credit score, down payment, and the property value. Many asset depletion programs are offered as jumbo or non-QM loans and can accommodate amounts from $500,000 to several million dollars, subject to lender guidelines.
Are interest rates higher on asset depletion loans?
Usually somewhat, because most asset depletion loans are non-QM products. The exact difference depends on your credit, down payment, asset profile, and market conditions. For many borrowers, qualifying for the right home without selling appreciating investments outweighs a modest rate premium.
Can I combine asset depletion income with other income?
Yes. Many lenders let you combine calculated asset income with other documented income, such as Social Security, pension distributions, rental income, or part-time employment, to strengthen your qualification.
Can I use an asset depletion loan for an investment property?
Yes. Many programs cover primary residences, second homes, and investment properties. Investment property programs typically require a larger down payment and may require higher credit scores. We'll help you find the programs that fit your asset profile.
Asset depletion loans qualify you on liquid assets instead of traditional income documents, with methods and terms that vary by lender. Talk with a licensed mortgage broker to confirm the right fit.
Calculate My Qualifying IncomeExample scenarios
Asset Depletion Scenarios Borrowers Can Identify With
Retired Couple Downsizing
Illustrative example, not an actual client.
A retired couple with substantial IRA and brokerage balances took only small distributions, so lenders saw little income. An asset depletion program could count their brokerage assets in full and their retirement accounts at a discount to create qualifying income.
Timelines, rates, and terms vary by lender and borrower profile.
Business Owner With Large Investments
Illustrative example, not an actual client.
A business owner's tax returns showed modest income after deductions, but they held a large brokerage portfolio. Asset depletion could qualify a vacation home purchase on those investments without selling any of them.
Timelines, rates, and terms vary by lender and borrower profile.
Social Security Plus Assets
Illustrative example, not an actual client.
A recently retired professional had Social Security and a pension that weren't quite enough on their own. A lender could combine that income with calculated asset depletion income to qualify.
Timelines, rates, and terms vary by lender and borrower profile.
Get Your Free Quote
You've Built the Wealth. Let's Make It Work for Your Mortgage
Share a few details about your situation and we'll calculate your estimated qualifying income, review your asset profile, and tell you exactly where you stand — with no obligation and no credit pull required to start.
Receive your estimated qualifying income calculation within 24 hours
No tax returns, no W-2s, and no credit impact to explore your options
Speak directly with a loan officer who specializes in asset-based qualification