Asset Depletion Guide
How Much Money for an Asset Depletion Loan?
How portfolio size, loan amount, term, haircuts, down payment, and reserves interact — realistic framing for Indiana buyers without promising exact approval amounts.
What Drives the Number
Your required portfolio size is a function of several moving parts — not a fixed dollar threshold every investor shares.
Loan amount
Higher = more income needed
Larger mortgages require more monthly depletion income for DTI
Loan term
Shorter = less assets needed
15-year terms divide the base by fewer months
Down payment
20–30% typical
Removed from depletion base before income calc
Reserves
3–12 months PITIA
Held aside and not counted toward income
Haircuts
60–100% by asset type
Retirement counts less than cash or brokerage
Other income
Reduces asset need
SS, pension, and rental income offset depletion
Indiana Buyer Framing
A Carmel retiree buying a $600,000 primary home with 25% down needs a very different asset base than a Zionsville buyer financing a $350,000 condo with Social Security already covering part of the payment. Loan amount, term, and compensating income all shift the math.
Rough rule of thumb: after haircuts, down payment, and reserves, your remaining depletion base divided by loan term in months should produce enough monthly income to keep total DTI within program limits — typically alongside property taxes, insurance, and any HOA on Indiana properties.
Ryan & Steve model your file against multiple investors before you shop — so you know whether your current portfolio supports your target price range or whether adjusting term, down payment, or loan amount makes more sense.
This is educational guidance only. Pre-approval requires a full review of your assets, credit, and property — no exact dollar amount is guaranteed here.
Planning Checklist
Ways to Reduce the Asset Base You Need
Strategic adjustments can make a borderline file work — without overstating what you can afford.
Keep Exploring
Related asset depletion guides and Non-QM resources from Ryan & Steve.
What Is an Asset Depletion Loan?
Overview of asset-based Non-QM and who it helps.
How Does Asset Depletion Income Work?
Haircuts, divide-by-term math, and monthly DTI income explained.
What Assets Can Be Used for Asset Depletion?
Eligible account types, haircuts, and common exclusions.
Asset Depletion Loans Overview
Full program hub and application steps.
2MG Daily
Related Blog Posts
Recent articles on asset depletion financing, Non-QM options, and retiree qualifying.
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Frequently Asked Questions
How much money do I need for an asset depletion loan?
There is no single universal minimum — portfolio size must support the loan amount, down payment, reserves, and monthly DTI target after program haircuts. Ryan and Steve run your actual balances against current investor guidelines before you apply.
Does a larger loan require more assets?
Yes — higher loan amounts need more depletion income, which means a larger usable asset base after haircuts, down payment, and reserves are subtracted. Loan term and DTI limits also factor in.
How does down payment affect how much I need?
Down payment is removed from the depletion base before income is calculated. A larger down payment reduces LTV but also reduces the asset pool available for income — balance both when planning your Indiana purchase.
Can I combine asset depletion with other income?
Yes — Social Security, pension, rental income, and other documented sources can be added to depletion income for total DTI. That may reduce the asset base you need to qualify.
Find Out If Your Portfolio Supports Your Target Price
Ryan & Steve will model your assets against loan amount, term, and reserve rules before you start shopping.
The 2 Mortgage Guys
Ryan Minick and Steve DeLon — Branch Managers & Senior Loan Officers at Luminate Bank. Based in Kokomo, Indiana. Lending nationwide since 2005.
Contact
Ryan Minick NMLS# 203249
Steve DeLon NMLS# 202876
Luminate Bank NMLS# 1281698
Kokomo's Mortgage Team. Lending Nationwide.
1221 Appletree Lane, Kokomo, IN 46902
Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved.
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