Retire Your Income Requirements. Your Assets Qualify You.
Significant wealth but limited monthly income? An asset depletion mortgage converts your liquid assets into qualifying income. No W-2s, no tax returns, no employment required.
An asset depletion mortgage — also called asset dissipation or asset utilization — is a Non-QM loan program that converts your liquid assets into a calculated monthly income for qualifying purposes. The lender takes your total eligible assets, subtracts the down payment and reserves, and divides the remaining balance over the loan term to arrive at a monthly income figure. That figure is then used to qualify your debt-to-income ratio.
This program exists because many high-net-worth individuals, retirees, and business owners have substantial wealth but report limited monthly income on paper. A traditional lender sees low income and declines the loan. An asset depletion lender sees your portfolio and approves based on your actual financial capacity. Kris works with multiple wholesale Non-QM lenders offering asset depletion programs to find the best terms for your asset profile.
Who Qualifies?
Significant liquid assets in eligible account types
Credit score of 620 or higher (680+ for best pricing)
Down payment of 20% or more (assets used for down payment are excluded from qualifying)
Remaining assets after down payment must support calculated monthly income
Primary residence or second home (some lenders allow investment property)
Retirement accounts eligible with applicable discount factor (typically 70%)
Pros and Cons
Advantages
No employment or W-2 income required
Qualify on the wealth you have built
Retirement and investment accounts both eligible
Ideal for retirees maintaining a high standard of living
Available for purchase and refinance
Can be combined with other income sources
Things to Consider
Large asset base required to generate sufficient qualifying income
Down payment assets excluded from the calculation
Retirement account discounting reduces qualifying power
Interest rates higher than conventional
Primary residence and second home focus; investment less available
Detailed asset documentation required
Frequently Asked Questions
An asset depletion mortgage converts your liquid assets into a calculated monthly income. The formula: total eligible assets minus down payment and closing costs, divided by the loan term in months. For example, $1.8 million in assets on a 30-year loan ($1.8M divided by 360 months) produces a $5,000 monthly qualifying income.
Eligible assets typically include checking and savings accounts at 100%, investment and brokerage accounts at 100%, and retirement accounts (IRA, 401k, SEP) at 70% to account for early withdrawal taxes. Real estate equity, business assets, and non-liquid holdings generally do not count.
No employment income is required. The calculated asset depletion figure serves as your qualifying income. Some borrowers combine asset depletion with Social Security, pension, or other income sources to strengthen their qualifying profile.
Most programs require a minimum credit score of 620, with better rates available for scores above 680 and 720. Strong credit combined with substantial assets produces the best terms.
The amount needed depends on the loan amount and your debt-to-income target. As a general rule, you need roughly $360,000 in eligible assets per $1,000 of required monthly qualifying income on a 30-year loan. Kris can run the numbers for your specific scenario quickly.
