Use your liquid assets to create qualifying income
Liquid Assets
Enter the value of each account. The % shown is how much the lender counts toward qualifying.
Down Payment
Available for Asset Depletion
$1,432,988
Closing costs are priced for Texas from the same engine as the Closing Cost calculator — promulgated title rates, transfer tax, and a RESPA escrow reserve. See the itemization →
Calculated Income
Monthly Payment
$3,232
Debt-to-Income: 44.6%
Max allowed: 50%
Qualifying income from assets varies by lender, account type and seasoning. Today’s rates →
Altgage Inc. NMLS #2447252 | 100 Cambridge St, Floor 14, Boston, MA 02114|Asset depletion loans are ideal for high-net-worth individuals who have significant liquid assets but limited traditional income. This includes retirees living off investments, early retirees, trust fund beneficiaries, or anyone who has accumulated wealth but doesn't show income on tax returns.
The lender takes your eligible liquid assets, subtracts your down payment and closing costs, then divides the remainder over a depletion period (typically 360 months for a 30-year loan). This creates a "synthetic" monthly income that's used to qualify you.
Asset depletion is a Non-QM loan product, so rates are typically higher than conventional loans. You'll also need at least 20% down and a credit score of 660+. But if you have the assets and need the loan, it's a viable path.
The lender converts your assets into a monthly income figure. The mechanics are simple and the details move the answer a lot.
Start with eligible liquid assets. Subtract your down payment and closing costs — that money is being spent, so it can’t also generate income. Divide what remains by the depletion period, commonly 360 months on a 30-year loan though some lenders use shorter periods. The result is a synthetic monthly income used exactly as employment income would be.
Haircuts matter. Most lenders don’t count assets at face value. Checking and savings usually count at or near 100%. Stocks and bonds are commonly discounted to around 85% for market risk. Retirement accounts are cut further — roughly 60% — for early-withdrawal exposure, and some lenders won’t count them at all if you’re under 59½. Other brokerage and trust holdings land near 70%.
Those haircuts, not the size of your portfolio, are usually what decides whether the number works. Two lenders can look at the same $2 million and produce qualifying incomes that differ by half.
A worked example: a $1.5 million portfolio after haircuts, less $200,000 for the down payment and closing costs, over 360 months gives $3,611 a month of qualifying income. Enough to matter, and rarely as much as borrowers expect.
Asset depletion is a non-QM product, so it costs more: rates typically run above conventional, 20% down is a common minimum, and credit generally needs to be 660 or better.
Check the cheaper routes first. Fannie Mae and Freddie Mac both allow forms of asset-based qualification for retirees drawing on investments, which can be materially less expensive than a non-QM alternative if you fit the guidelines. Pension and Social Security income can often be grossed up for its tax treatment, which sometimes closes the gap without needing asset depletion at all. And if you’re taking regular distributions with a two-year history and continuity, those may qualify as ordinary income.
Asset depletion is the answer when those don’t work — a genuinely useful product for a real situation, but not the first place to look.
An asset depletion loan qualifies you on your liquid assets rather than employment income. The lender divides your eligible assets, after subtracting the down payment and closing costs, over a set period — commonly 360 months — to create a synthetic monthly income used for qualification.
Retirees living on investments, early retirees, trust beneficiaries, and anyone whose wealth doesn’t produce reportable income. It’s built for borrowers who could comfortably buy the house outright but want a mortgage and have no pay stub to show.
Checking and savings count at or near 100%, stocks and bonds are commonly discounted to around 85% for market risk, retirement accounts to around 60% for early-withdrawal exposure, and other brokerage or trust holdings to roughly 70%. Real estate, business assets and anything not readily liquid generally don’t count at all.
Take eligible assets after haircuts, subtract your down payment and closing costs, and divide by the depletion period the lender uses. A $1.5 million portfolio after haircuts, less $200,000 to close, over 360 months produces about $3,611 a month of qualifying income — enough to matter, and rarely as much as borrowers expect.