Asset Depletion
Direct definition
A qualifying method that treats a portion of your liquid assets as income for loan approval.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Asset-depletion programs let borrowers use eligible savings and investment balances to demonstrate ability to repay, dividing those assets over a defined period to create a monthly income figure.
Why it matters
It opens the door for retirees, high-net-worth borrowers, and others whose wealth exceeds their reported income.
Where you may see it
- Underwriting conditions
- Bank and brokerage statements
- Loan program guidelines
A real-world example
Educational and illustrative only
A common misunderstanding
Asset depletion doesn't mean the lender takes your assets — it's a formula that converts eligible balances into a qualifying income figure.
Frequently asked
What assets typically count?+
Bank accounts, brokerage accounts, and certain retirement funds — with lender-specific haircuts and age rules.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026