Asset Depletion Mortgage
Qualify using the wealth you've built.
A mortgage program that qualifies borrowers using their liquid assets rather than traditional employment income.
What is a Asset Depletion loan?
Asset Depletion is a non-QM loan program that converts a borrower's qualified liquid assets into a hypothetical monthly income stream for underwriting purposes. Rather than reviewing pay stubs and W-2s, the lender divides eligible assets over a defined period to establish qualifying income.
Designed for
High-net-worth individuals, retirees, and borrowers whose wealth sits primarily in investments, savings, and retirement accounts rather than active earned income.
Why choose it
It's an ideal fit when your assets clearly show the ability to repay, but tax returns or paystubs don't reflect your true financial picture.
Common use cases
- ◆Retirees purchasing a primary residence or second home
- ◆Wealthy borrowers between businesses or ventures
- ◆High-net-worth families financing a luxury property
- ◆Borrowers seeking privacy without disclosing complex tax returns
Built for borrowers who look like this.
Retirees
Living off portfolios rather than a paycheck.
High-net-worth individuals
Substantial liquid assets with variable income.
Business owners
Between ventures or drawing minimal income.
Wealth-transfer heirs
Significant assets, limited earned income history.
The advantages.
No employment required
Qualification is based on assets, not a job.
Flexible documentation
Streamlined alternative to full tax-return review.
Competitive loan sizes
Available for primary, second homes, and investment properties.
Privacy-friendly
Fewer income disclosures than traditional programs.
Things to weigh.
Asset seasoning
Funds typically must be seasoned and verifiable.
Reserve expectations
Larger reserves are commonly expected than agency loans.
Rate premium
Rates may run slightly higher than conventional pricing.
Eligible assets only
Not all account types count toward the calculation.
What lenders generally look for.
Requirements vary based on lender guidelines and borrower qualifications. The below is educational — not a commitment or offer of credit.
- Income documentation
- Verified liquid assets in lieu of employment income
- Credit expectations
- Strong credit profiles preferred; varies by lender
- Down payment
- Varies by occupancy, credit, and loan size
- Reserves
- Meaningful post-close reserves typically expected
- Eligible properties
- Primary, second home, and investment (varies)
Answers to what borrowers ask most.
How is qualifying income calculated?
Eligible assets are divided over a defined term to produce a monthly figure used for underwriting. Every investor calculates this slightly differently.
Do I need to be retired?
No. Any borrower with significant liquid assets can potentially qualify, regardless of employment status.
What counts as an eligible asset?
Typically checking, savings, brokerage, and a portion of retirement accounts, subject to lender guidelines.
Can I use retirement accounts?
Often yes, at a discounted percentage of the balance. Rules vary based on age and account type.
Is my income taxed differently?
Asset depletion is a qualification method, not a taxable event. No withdrawals are required.
Can I refinance later into a conventional loan?
Yes, once traditional income documentation supports agency underwriting.
Does credit still matter?
Yes. Strong credit generally results in better pricing and terms.
Can I use this for investment properties?
Many lenders allow it; guidelines and pricing vary.
How large a loan can I get?
Loan amounts vary by investor and can exceed jumbo limits when assets support the calculation.
Is closing faster than a traditional loan?
Often yes, since income documentation is streamlined.
Complete Asset Depletion Guide
Understand how lenders convert your wealth into qualifying income.
Run the numbers.
Educate yourself.
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A non-QM program that does not calculate a debt-to-income ratio, focusing instead on credit, assets, and property.
Explore No Ratio loan requirementsAsk about Asset Depletion.
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