Question 1

What is an asset depletion mortgage?

Accepted Answer

An asset depletion mortgage (also called asset dissipation or asset utilization) is a non-QM loan program that converts your verified liquid assets into a calculated monthly income for qualification purposes. Instead of qualifying based on W-2 wages or tax returns, the lender divides your eligible assets by the loan term to arrive at a monthly income figure. This income figure is then used to calculate your debt-to-income ratio.

Question 2

How is the income calculated from assets?

Accepted Answer

The most common calculation divides eligible assets by the loan term in months. For example, $2,000,000 in eligible assets divided by 360 months (30-year loan) equals $5,556 in monthly income. Some lenders apply a discount to the assets before dividing (such as using 70% of retirement account balances to account for taxes and penalties). Dan identifies which lender's calculation methodology produces the most favorable result for your specific asset mix.

Question 3

What types of assets qualify?

Accepted Answer

Checking and savings accounts, money market accounts, stocks and bonds, mutual funds, CDs, and retirement accounts (with a discount applied for taxes/penalties) typically qualify. Non-liquid assets such as real estate equity, business ownership stakes, and private equity generally do not count directly. Assets held in trust may count depending on the lender and the trust structure.

Question 4

Do I need to liquidate my assets to use this program?

Accepted Answer

No. Asset depletion is a qualification methodology, not a requirement to actually spend down the assets. You retain full ownership and control of the assets. The calculation is hypothetical: it establishes your theoretical ability to service the debt over the loan term. You are not required to sell anything.

Question 5

Who is this program designed for?

Accepted Answer

Asset depletion is primarily used by early retirees or semi-retirees who have significant investment portfolios but reduced current income, business owners or entrepreneurs who recently sold a business and have substantial proceeds, high-net-worth individuals with complex tax returns that show low adjusted gross income, and buyers living off investment distributions rather than W-2 wages.

Question 6

Can asset depletion be used for jumbo loans?

Accepted Answer

Yes. Many asset depletion programs have high loan limits specifically because the target borrower (high-net-worth with significant assets) is often purchasing above conforming limits. Dan works with portfolio lenders who offer asset depletion on jumbo loans up to $3M and in some cases higher.

Asset Depletion Mortgage: Qualify on What You Have, Not What You Earn

How Asset Depletion Qualification Works

Example Calculation

Who This Program Is For

Dan's Take on Asset Depletion

Asset Depletion Mortgage FAQs

Related High-Net-Worth Mortgage Programs

Significant Assets but Limited Monthly Income on Paper?