Non-QM · Alternative Documentation

Asset Depletion Loans

Qualify on liquid assets — not a paycheck. Built for Indiana retirees, high-net-worth buyers, and investors whose balance sheet is stronger than their W-2 income.

Asset Depletion Calculator See How It Works
No employment required
Retirement accounts count
Assets ÷ loan term

What Is an Asset Depletion Loan?

An asset depletion loan is a Non-QM mortgage that turns your liquid net worth into qualifying income. Instead of W-2s or tax returns, lenders take eligible assets, apply any required haircut, and divide by a term factor — often the loan term in months — to create a monthly income figure for DTI.

Retirees living on investments, buyers between careers, and high-net-worth borrowers with low reported income are common fits. You do not have to liquidate everything at closing — underwriting uses a calculated depletion schedule so your portfolio can support the payment on paper.

Guidelines vary by investor, credit, and loan amount. This overview is educational — every file is reviewed against current product rules.

How income is figured

Eligible liquid assets

×

Haircut / usable %

÷

Loan term (months)

Result = monthly qualifying income used for DTI. Retirement accounts and brokerage balances often count at a reduced percentage; cash and checking usually count higher.

How Asset Depletion Loans Work

From listing your accounts to closing — without an employment income calc.

{[ { num: '01', title: 'List eligible assets', desc: 'Cash, brokerage, retirement, and other liquid accounts that the investor will count.' }, { num: '02', title: 'Apply haircuts', desc: 'Many programs use a percentage of retirement or investment balances as usable assets.' }, { num: '03', title: 'Divide by term', desc: 'Usable assets ÷ months remaining on the loan (or a set factor) = monthly income.' }, { num: '04', title: 'Underwrite & close', desc: 'Credit, equity, reserves, and appraisal still apply — employment often does not.' }, ].map((step, i) => (
{step.num}

{step.title}

{step.desc}

{i < 3 && }
))}

Who Asset Depletion Loans Are For

Borrowers whose liquid assets tell a stronger story than a traditional income document.

{[ 'Retirees and semi-retirees', 'High-net-worth buyers', 'Investors with large cash or brokerage balances', 'Borrowers between jobs with strong reserves', 'Buyers living on investments, not wages', 'Households with low reported income but high liquidity', ].map((item) => (
))}

Not the right fit if…

  • — You have clean W-2 or 1099 income that already qualifies conventionally
  • — Your liquid assets are too thin after down payment and reserves
  • — Investment cash-flow deals may fit better as DSCR

Exploring other Non-QM options?

All Non-QM Programs Bank Statement Loans 1099 Income Loans

Why Borrowers Choose Asset Depletion

Income from your balance sheet

Underwriting converts eligible liquid assets into a monthly income figure. That closes the gap for retirees and asset-rich buyers whose tax returns or pay stubs do not reflect their ability to carry a mortgage.

Typical formula: assets ÷ loan-term months

No job required

Employment verification is often skipped when assets alone support the payment and reserves.

Retirement accounts count

IRAs, 401(k)s, and similar accounts may qualify at a program-defined percentage.

Flexible occupancy

Primary, second home, or investment — program rules vary by use and LTV.

Indiana local guidance

Ryan & Steve map your asset mix before you apply so the depletion math is clear.

Typical Guidelines

Common Non-QM asset depletion ranges — your scenario may differ. We confirm exact numbers before you make an offer.

Eligible assets

Cash, brokerage, retirement

Checking, savings, stocks, mutual funds, IRAs, 401(k)s — haircuts vary by type

Credit profile

Often mid-600s to 700+

Stronger scores unlock better pricing and higher LTVs

Down payment

Often 20–30%+

Higher equity is common on asset-based Non-QM files

Reserves

Often 6–12 months PITIA

May rise with loan size, occupancy, or credit tier

Property types

1–4 unit residential

SFR, condo (warrantable), and small multifamily

Loan purpose

Purchase or refinance

Rate/term and cash-out options on many programs

All loans subject to credit and property approval. Program guidelines vary by investor and change without notice.

What You Will Need

A complete asset package speeds underwriting. Incomplete statements, unexplained large transfers, or assets already pledged for down payment are the usual delays.

{[ { title: 'Asset statements', detail: 'Recent statements for every account used in the depletion calc — cash, brokerage, and retirement.' }, { title: 'Ownership & vesting proof', detail: 'Confirm you (and co-borrowers, if any) own the assets being counted.' }, { title: 'Photo ID & application', detail: 'Government ID, signed 1003 application, and authorization for credit.' }, { title: 'Down payment & reserve trail', detail: 'Show which funds cover equity and post-closing reserves without double-counting depleted assets.' }, { title: 'Purchase contract', detail: 'Fully executed agreement once you are under contract — or refi docs for existing property.' }, ].map((item, i) => (

{item.title}

{item.detail}

))}

Mortgage Knowledge Center

Common Asset Depletion Questions

Straight answers on asset depletion qualifying, income calculation, eligible accounts, Social Security and employment stacking, credit, DTI, property types, second homes, investment use, refinance, documents, and fit — written for Indiana buyers.

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Ready to Qualify on Your Assets?

Talk with Ryan and Steve about an asset depletion pre-approval — we review your liquid accounts and haircuts before you apply so the numbers make sense.

Contact Us
(765) 450-8933 Get Started