Asset Depletion Loans

for High-Asset Borrowers

Asset depletion loans are designed for eligible borrowers who may qualify using certain liquid assets as a source of qualifying income instead of relying solely on traditional employment or self-employment income.

This can be especially useful for retirees, investors, or high-net-worth borrowers whose financial strength is reflected more in their assets than in conventional monthly income documentation.

Asset depletion loan eligibility, eligible asset types, calculation methods, reserve requirements, down payment, and loan terms vary by lender and borrower scenario.

How Asset Depletion Loans Work

Eligible Asset Review

The lender reviews eligible liquid assets such as certain investment, retirement, or cash accounts to determine which funds may be considered for qualification.

Calculation

The lender applies the program’s approved asset depletion formula to convert eligible assets into a qualifying monthly income amount.

Borrower & Property Review

Your credit, liabilities, reserves, property type, and overall loan structure are also reviewed to make sure the scenario meets program guidelines.

Loan Approval & Closing

Once the asset calculation, borrower profile, property, and loan structure meet the lender’s requirements, the loan can move toward closing.

Asset Depletion Loan Requirements to Expect

Eligible Liquid Assets

The lender typically requires sufficient eligible assets that can be documented and used under the program’s asset depletion guidelines.

Asset Documentation

Account statements and other supporting records may be required to verify ownership, balances, liquidity, and the source of funds.

Credit, Liabilities & Reserves

The lender may review your credit profile, existing obligations, required reserves, and overall financial position in addition to the asset calculation.

Property & Loan Guidelines

The property type, occupancy, loan amount, appraisal, and overall transaction must meet the lender’s asset depletion program requirements.

Could your assets do the qualifying for you?

You’ve built real wealth, but you don’t have a paycheck to show for it. Asset depletion loans are built for exactly that situation. Instead of looking only at monthly income, the lender looks at what you’ve saved and invested.

Often a good fit if you are:

Retired and living off savings, investments, or retirement accounts
An investor whose wealth sits in assets rather than a W-2
Between jobs or businesses, with substantial savings in the bank
Holding large proceeds from a business sale, an inheritance, or a home sale

Probably not the best fit if you:

Have limited liquid assets that can be documented
Already qualify comfortably with your regular income
Have most of your wealth tied up in assets that can’t easily be accessed

Not sure which category you’re in? That’s what the call is for. If your income comes from self-employment instead, take a look at our

1099 loans or other loan options.

What to have ready

Recent statements for the accounts you want considered, often covering the past two months, depending on the program
Retirement and investment account statements
Documentation showing where large deposits came from
Photo ID
Details about the property you’re buying or refinancing

What it looks like in real life (example for illustration only)

Robert is a recently retired engineer in Colorado with a healthy investment portfolio and retirement accounts, but no paycheck. A traditional lender saw a retiree with little monthly income and hit pause. Under an asset depletion program, the lender reviewed his eligible assets, converted them into a qualifying monthly income, and the loan could move forward. Every borrower’s numbers are different, and approval depends on the lender’s guidelines.

Asset depletion loan FAQs

Can I qualify without a job?
Yes, in many cases. Asset depletion programs are designed for borrowers whose strength is in their assets, not their paycheck. Requirements vary by lender.

Which assets can count?
It depends on the program. Lenders often consider checking, savings, brokerage, and retirement accounts, and some account types may be counted at a reduced value.

Do I have to sell or spend my assets?
No. The lender uses your eligible assets to calculate qualifying income. You don’t have to liquidate them to qualify.

Does money I use for my down payment still count?
Typically, funds used for the down payment and closing costs are set aside before the calculation, so they don’t count twice. Your loan advisor will walk through this with you.