Asset Depletion Mortgage Loans:Qualify Using Savings and Investments
You have the wealth to buy the home — you just don't show the monthly income. Asset depletion loans convert your savings, investments, and retirement accounts into qualifying income so your balance sheet does the talking.
An asset depletion loan lets you qualify for a mortgage using your accumulated wealth instead of your monthly paycheck. The lender takes your eligible liquid assets — savings, brokerage accounts, retirement funds — subtracts your down payment and closing costs, then divides the remaining total over the loan term to create a "synthetic" monthly income. It is ideal for retirees, business owners, high-net-worth borrowers, and anyone with money but little reportable income.
Of eligible assets can be converted into qualifying income
Employment or paystub income is not required
LTV available on qualifying asset-depletion programs
What Is an Asset Depletion Mortgage?
Asset depletion (sometimes called asset dissipation or asset-based lending) is a non-QM loan program that underwrites you on assets rather than employment income. Instead of asking "how much do you earn each month?", the lender asks "how much wealth do you have to draw from?"
This is a powerful solution for borrowers whose financial lives don't fit the traditional W-2 mold — retirees living on portfolios, business owners who minimize taxable income, investors between liquidity events, or anyone who has accumulated significant savings but doesn't draw a steady salary.
Requires paystubs, W-2s, or tax returns.
Requires statements for savings & investments.
Which Assets Count Toward Qualification
Most programs use liquid and near-liquid assets. Each type carries a different "haircut" — a percentage of value the lender is willing to count.
Checking & Savings
Typically counted at 100% of balance.
Brokerage / Investment Accounts
Usually counted at 70–100% of market value.
Retirement Accounts (401k / IRA)
Often counted at 60–70% to account for taxes and penalties.
Stocks, Bonds & Mutual Funds
Counted at a discounted percentage of current value.
CDs & Money Market
Generally treated like cash, with a high count value.
Real Estate & Illiquid Assets
Case-by-case. Often excluded unless income-producing.
Important: Only assets that remain after closing can be used to qualify. Your down payment and closing costs are subtracted first, and many lenders also require you to retain reserves. Haircut percentages vary widely by lender — this is exactly where an experienced advisor finds you the best fit.
Apply NowHow Asset Depletion Math Actually Works
The lender turns your leftover assets into a monthly income figure. Here is the step-by-step, with a real example.
Total Eligible Assets
Add up all countable accounts using each asset's haircut percentage.
Subtract Cash to Close
Remove your down payment, closing costs, and required reserves.
Divide Over Loan Term
The remainder is spread across the loan term in months.
Result = Qualifying Income
That monthly figure is used to calculate your debt-to-income ratio.
Worked Example — Retiree Buying a $700,000 Home
Eligible Assets
Qualifying Calculation
Illustrative only. Actual figures vary based on lender haircuts, program guidelines, and your full file. Some programs divide over 20 years for a higher monthly figure.
Who Asset Depletion Loans Are Best For
If your net worth is strong but your documented income is thin, this program was built for you.
Retirees
Living on portfolio withdrawals and Social Security but carrying substantial savings. Asset depletion recognizes the wealth you spent a lifetime building.
Business Owners & Self-Employed
If write-offs reduce your taxable income but you hold meaningful reserves, your assets can qualify you where tax returns fall short.
High-Net-Worth Borrowers
When your balance sheet is the story, asset depletion lets you borrow against wealth — often with larger loan amounts and competitive terms.
Recent Liquidity Events
Sold a business, received an inheritance, or cashed out equity? Convert that one-time capital into ongoing qualifying income for your mortgage.
Have the Assets? Let's Find Out What You Qualify For.
Share your asset picture and we'll model your synthetic income and purchasing power — no obligation.
Typical Guidelines & What to Expect
Asset depletion is a non-QM program, so guidelines are set by each lender rather than by Fannie Mae or Freddie Mac. That flexibility works in your favor — but it also means the details matter. Here is what most programs look for.
Credit Score
Often 620–700 minimum, with better pricing at higher scores.
Loan-to-Value (LTV)
Commonly up to 80% on primary residences, sometimes higher with strong assets.
Documentation
Two months of asset statements, no paystubs or tax returns required.
Reserves
Lenders often require remaining reserves after closing, typically 6–12 months.
Property Types
Primary, second homes, and investment properties. Some programs allow LLC vesting.
Your portfolio becomes your income statement. We'll show you exactly which assets count and at what value.
Frequently Asked Questions
What borrowers ask us most about asset depletion loans.
What is an asset depletion mortgage loan?
An asset depletion loan is a non-QM mortgage that qualifies you based on your accumulated assets rather than your employment income. The lender converts eligible savings, investments, and retirement funds into a synthetic monthly income figure, then uses that to calculate your debt-to-income ratio.
Do I need a job or income to qualify?
No. Traditional employment income and paystubs are not required. The whole purpose of asset depletion lending is to let your wealth, not your paycheck, carry the approval. Some programs do not even require verified employment.
How is my qualifying income calculated?
The lender totals your eligible assets, subtracts your down payment, closing costs, and required reserves, then divides the remainder by the loan term in months. For example, $700,000 remaining over 360 months equals roughly $1,944 of monthly qualifying income. Some programs divide over a shorter term like 20 years to produce a higher monthly figure.
Can I use my 401(k) or IRA to qualify?
Yes. Retirement accounts are commonly eligible, but lenders usually count them at a reduced percentage — often 60% to 70% of the balance — to account for taxes and potential early-withdrawal penalties. You are not required to actually liquidate the account to qualify.
Do asset depletion loans cost more than a traditional loan?
Because they are non-QM programs with more flexible guidelines, rates and fees are typically modestly higher than conventional loans. For borrowers with strong assets and thin income, that trade-off is often the difference between purchasing the home and being declined altogether.
Can I use a gift for my down payment or assets?
Gift funds are generally allowed for the down payment on many asset depletion programs, but gifted assets usually cannot be used to create the qualifying income itself. Guideline specifics vary by lender, so it is best to review your scenario with an advisor before applying.
Are investment properties and second homes eligible?
Yes. Asset depletion loans can be used for primary residences, second homes, and investment properties. Some programs allow the property to be titled in an LLC and support cash-out refinances as well as purchases.
Saman Khanian
Chief Executive Officer, Equitable Lending
Saman Khanian leads Equitable Lending and specializes in financing solutions for borrowers whose financial profiles fall outside conventional guidelines. He writes about non-QM lending, asset-based and bank statement programs, and the strategies high-net-worth and self-employed clients use to access mortgage capital without sacrificing their tax or investment advantages.
Disclosure: This article is for educational purposes and does not constitute a commitment to lend. Equitable Lending is a DBA of Equitable Mortgage & Realty Inc., NMLS 1124483. All loans subject to credit approval, underwriting guidelines, and program availability. Rates, terms, and programs are subject to change without notice. Equal Housing Opportunity. For licensing information, visit nmlsconsumeraccess.org.
Don't Let a Thin Paycheck
Hold Back a Strong Balance Sheet
Talk to an Equitable Lending specialist who structures asset depletion loans every day. Find out what your savings and investments can qualify you for.