Non-QM Loans
Asset Depletion Loans
You have significant assets. You do not have traditional income. Asset depletion loans let lenders calculate a qualifying income from your liquid assets so your portfolio works for you at the mortgage table the same way it works for you everywhere else.
No W2s
Assets Create the Income
Retired
Friendly
Liquid
Assets Qualify
What Is an Asset Depletion Loan?
An asset depletion loan, also called an asset dissipation loan, allows lenders to convert your liquid assets into a calculated monthly income for qualifying purposes. Instead of requiring a W2 or tax return showing earned income, the lender takes your eligible assets, divides them over the remaining loan term, and uses that figure as your qualifying income.
For example, if you have $2 million in liquid assets and are applying for a 30-year mortgage, the lender may divide that by 360 months to arrive at a monthly income of approximately $5,500. That calculated income is then used to qualify you for the loan just like earned income would be. You do not actually draw down or liquidate those assets. They simply serve as the basis for income calculation.
What it is
A loan that converts your liquid assets into a calculated monthly income for qualifying purposes. No W2 or tax return required.
How it works
Your eligible assets are divided over the remaining loan term to arrive at a qualifying income figure. You never actually draw down or liquidate those assets.
Ready to Get Started?
Let's See What Your Assets Can Do
No pressure, no runaround. Todd and Aaron will review your asset picture and tell you exactly what you qualify for.
Key Benefits
No Employment Required
Retired, semi-retired, or simply not earning traditional income. Your assets stand in as the qualifier and employment history is not required.
Assets Stay Intact
You do not liquidate or draw down your assets to qualify. They are used as a calculation basis only and remain fully yours after closing.
Multiple Asset Types Accepted
Checking, savings, brokerage accounts, and retirement funds are all commonly eligible. Todd and Aaron will identify which of your accounts count toward the calculation.
Primary and Second Homes
Asset depletion is available for primary residence and second home purchases, making it a strong fit for retirees buying a vacation or retirement property.
Who Is It For?
Asset depletion loans are designed for borrowers who have substantial liquid wealth but limited or no traditional earned income. If your net worth is strong but your W2 is nonexistent, this product bridges that gap so you are not penalized for being financially successful in a non-traditional way.
It is a strong fit for:
- Retirees living off investment portfolios or savings rather than a paycheck
- High-net-worth individuals who have sold a business or significant asset
- Investors whose wealth is held in liquid accounts rather than active income
- Semi-retired borrowers with strong assets but reduced income
- Anyone who has been turned down because their income documentation does not reflect their actual financial strength
Good to Know
Not all assets count equally. Retirement accounts are often discounted by 30% to 40% since they carry withdrawal penalties and tax implications. Liquid checking and brokerage accounts typically count at full value. Todd and Aaron will identify exactly which accounts qualify and at what value before you apply.
Most programs require a minimum credit score of 680 and a down payment of 20% or more.
The Math Works
$2M in
Assets.
Divided over 360 months equals roughly $5,500 per month in qualifying income. That is the calculation. Todd and Aaron will run your specific numbers so you know exactly where you stand.
How the Process Works
Document Your Eligible Assets
Todd and Aaron identify which of your accounts qualify and request the appropriate statements. Typically two to three months of statements for each eligible account.
Calculate Your Qualifying Income
Eligible assets are totaled, any required discounts are applied, and the result is divided by the loan term in months to arrive at your qualifying monthly income figure.
Credit Review and Pre-Approval
We confirm your credit profile meets program requirements and issue a pre-approval based on the asset-derived income calculation. You now know exactly what you can purchase.
Appraisal and Underwriting
Standard appraisal on the property. Underwriting reviews your asset documentation and credit profile. The file is more straightforward than it sounds once everything is organized correctly.
Close and Move Forward
You close on your home. Your assets remain intact. Your mortgage is funded. Exactly as it should be.
Typical Timeline
21-30
Days to Close
Asset depletion loans close quickly once the asset documentation is in hand and the income calculation is confirmed. The key is having your statements organized and ready at the start.
Worth Knowing
Retirement Accounts Are Discounted.
Because retirement accounts have withdrawal penalties and tax implications, most lenders apply a 30% to 40% discount when counting them toward your eligible asset total. Liquid accounts like checking and brokerage accounts typically count at full value.
Common Questions
Do I actually have to spend down my assets to qualify?
No. Asset depletion is a calculation method only. Your assets are used to derive a qualifying income figure on paper. You do not draw them down, liquidate them, or spend them as part of the loan process. After closing, your assets remain exactly as they were.
What types of assets count toward the calculation?
Checking and savings accounts, brokerage and investment accounts, money market accounts, and retirement accounts like IRAs and 401ks are commonly eligible. Retirement accounts are typically discounted by 30% to 40% to account for early withdrawal penalties and taxes. Business accounts may or may not be counted depending on the program. Todd and Aaron will identify exactly which of your accounts qualify.
How much do I need in assets to qualify?
It depends on the loan amount and the qualifying income required. If you need $4,000 per month in qualifying income for a 30-year loan, you would need approximately $1.44 million in eligible assets using a straight division method. The exact calculation varies by program. Todd and Aaron will reverse-engineer the number based on the purchase price you are targeting.
Can I combine asset depletion income with other income sources?
Yes. If you have Social Security, pension income, rental income, or any other documented income, that can typically be combined with the asset depletion calculation to strengthen your qualifying position. More income sources generally means more flexibility on the loan amount and terms.
Is asset depletion available on conventional loans?
Some conventional programs allow asset depletion calculations, though it is more commonly found in non-QM loan products. The program type that makes sense for you depends on your asset profile, credit score, and down payment. Todd and Aaron will match you with the right program based on your full picture.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710