Eligible Asset Types
Multiple asset types can be used to qualify for your mortgage
Checking & Savings
100% of balance eligible
Marketable Securities
Stocks, bonds, mutual funds
Retirement Accounts
IRA, 401(k), pension (age-based eligibility)
Life Insurance
Cash value of policies
Real Estate Proceeds
Net proceeds from property sales
Business Assets
With proper documentation
Multiple Calculation Methods
We use the method that works best for your situation
Method One
Total assets must cover funds to close plus loan amounts plus required reserves
Method Two
Assets cover funds to close plus all other debt service obligations
Method Three
Assets cover funds to close plus total monthly debt service over loan term
Program Guidelines
Key Benefits
Who Benefits from Asset Depletion Loans?
A sophisticated way to leverage your assets to qualify for a home purchase or refinance—no income tax returns required
Retirees
Living off investments and retirement accounts
High-Net-Worth
Substantial assets but complex income
Self-Employed
Write-offs reduce taxable income
Investors
Portfolio income not shown on tax returns
Inheritance Recipients
Recently received an inheritance and want to use those funds to purchase or refinance a home without traditional income documentation
Trust Beneficiaries
Receiving trust income for at least 3 months with documentation showing it will continue for 3+ years—leverage your trust distributions to qualify
Lottery Winners
Came into unexpected wealth through lottery winnings or similar windfall and want to purchase property without tax return requirements
Estate Beneficiaries
Managing an estate legacy and want to continue building upon it—perhaps buying a beach house for the family to enjoy in memory of a loved one
Reverse Mortgage Alternative
Seniors who want to tap into their assets without the complexities of a reverse mortgage—maintain full ownership while leveraging your wealth
No Tax Return Borrowers
Anyone with substantial liquid assets who doesn't have income tax returns but wants a sophisticated way to qualify for a mortgage
Asset Depletion loans provide a sophisticated, K-1 friendly approach to mortgage qualification—perfect for those with substantial assets who don't fit the traditional income documentation mold.
Frequently Asked Questions
What is an Asset Depletion loan?
An Asset Depletion loan—also known as Asset Utilization, Asset Participation, or Asset Qualifier depending on the lender—allows borrowers to qualify for a mortgage using their liquid assets instead of traditional income documentation. The lender calculates a 'monthly income' by dividing eligible assets by a set number of months (typically 60-360 months depending on the program and how each lender quantifies the monthly amount used for qualifying).
Who qualifies for Asset Depletion loans?
Asset Depletion loans are ideal for retirees living off investments, high-net-worth individuals, self-employed borrowers with complex income, real estate investors, inheritance recipients, trust beneficiaries receiving documented income, lottery winners, estate beneficiaries building upon a family legacy, and anyone with substantial liquid assets who may not show sufficient income on tax returns. It's also a great alternative to a reverse mortgage for seniors who want to leverage their assets while maintaining full ownership.
What assets can be used?
Eligible assets typically include checking/savings accounts, money market accounts, stocks, bonds, mutual funds, retirement accounts (with age-based eligibility), cash value of life insurance, and net proceeds from real estate sales. Cryptocurrency may be eligible if liquidated.
How is the qualifying income calculated?
We use multiple calculation methods to maximize your eligibility. Generally, eligible assets are divided by a factor (such as 60, 84, or 360 months) to determine monthly qualifying income. Different asset types may have different eligibility percentages.
Are retirement accounts eligible if I'm under 59½?
Retirement accounts have different eligibility percentages based on your age. If you're under 59½, a smaller percentage (typically 50-70%) of retirement assets may be used. If you're 59½ or older, a higher percentage (up to 100%) may be eligible.
Enter Your Liquid Assets
100% per guidelines
100% per guidelines
70% per guidelines
50% per guidelines
60% per guidelines
Depletion Period
Different lenders use different depletion periods. A shorter period results in higher qualifying income.
Your Estimated Results
* Estimate based on standard underwriting guidelines. Actual amounts confirmed during underwriting. Predictable process. No surprises.
Real-World Success Stories
Common situations. Standard documentation path. Same process for each.
Inheritance Recipient
Margaret, 58, recently inherited $1.2 million from her late mother. She wants to purchase a vacation home near the beach but has been retired for 2 years and has no traditional income to show on tax returns.
Assets Used for Qualification
Margaret qualified for a $750,000 loan to purchase her dream beach house, using her inheritance as qualifying income—no tax returns required.
Trust Beneficiary
Robert, 45, receives $8,500/month from a family trust established by his grandparents. The trust documents show distributions will continue for the next 15 years. He wants to refinance his investment property.
Assets Used for Qualification
By combining his documented trust income with asset depletion, Robert qualified for a cash-out refinance of $650,000 on his investment property.
Lottery Winner
James, 52, won $2.5 million in the state lottery last year. After taxes, he received $1.6 million as a lump sum. He wants to purchase a primary residence but his tax return shows unusual income that traditional lenders won't accept.
Assets Used for Qualification
James purchased a $1.1 million home with 20% down, qualifying entirely through asset depletion without needing to explain his lottery income on tax returns.
Estate Legacy Builder
The Thompson family trust inherited $2.8 million when their grandfather passed. The family wants to purchase a beach house that everyone can enjoy in his memory—continuing his legacy of bringing the family together.
Assets Used for Qualification
The Thompson family purchased a beautiful oceanfront property for $1.8 million, creating a gathering place for generations to come—exactly as grandfather would have wanted.
* These case studies are illustrative examples based on typical scenarios. Actual loan amounts and terms depend on individual circumstances, credit profile, property type, and lender guidelines.
Asset Depletion vs. Reverse Mortgage
For seniors and high-net-worth individuals, asset depletion offers a smarter alternative to reverse mortgages—maintain ownership, protect your legacy, and access more options
Why Choose Asset Depletion Over a Reverse Mortgage?
Maintain Full Ownership
Keep 100% of your home equity and build wealth over time instead of depleting it
Protect Your Legacy
Pass your home and equity to your heirs without the burden of a growing loan balance
More Property Options
Use asset depletion for vacation homes, investment properties, or your primary residence
No Age Restrictions
Qualify at any age—you don't have to wait until 62 to leverage your assets
Predictable Payments
Know exactly what you'll pay each month with a traditional mortgage structure
Higher Loan Limits
Access loan amounts up to $3 million or more, beyond FHA reverse mortgage caps
Related Loan Programs
Lock your asset-based rate. Most asset-rich borrowers do.
Because you have $500K+ in liquid assets, we calculate income from asset depletion. Credit 680+. 20-25% down. No employment verification needed.
Locked at confirmation. No extensions needed.
No hard credit pull. No commitment. Assets stay in your accounts.
Rate locked. Assets verified. We handle the process from here.
Waiting means re-documenting assets with each rate shift and restarting verification.
- Rate protected
- Timeline locked
- Process handled
Asset Depletion Loan Rate Information
Asset depletion loan rates vary based on the type and liquidity of assets used for qualification, credit score, and loan-to-value. Retirement accounts may be discounted for qualification purposes. Rates shown are estimates only.
Minimum liquid assets typically required. All loans subject to credit approval and asset verification.
Licensed MLO approval required for all rate quotes and loan commitments.