Asset Depletion Guide
What Assets Can Be Used for Asset Depletion?
Cash, brokerage, retirement at reduced percentages — and the assets lenders typically exclude from depletion income.
Eligible Asset Types
Most asset depletion programs count liquid and semi-liquid accounts — each at a program-specific haircut percentage.
Cash & checking/savings
Often 100%
Fully liquid accounts with clear ownership documentation
Brokerage & investments
70–100%
Stocks, bonds, mutual funds, ETFs — marketable securities
401(k) & IRA accounts
60–70%
Retirement reduced for market and withdrawal risk
Roth IRA
60–70%
May count similarly to traditional retirement accounts
Money market & CDs
80–100%
Liquid or near-liquid; early withdrawal penalties may apply
Trust accounts
Varies
Must show borrower access and beneficial ownership
Haircut percentages are illustrative. Exact usable amounts vary by investor and account type.
Common Exclusions
These assets typically do not count toward depletion income — or require special handling.
| Asset type | Typical treatment | Why |
|---|---|---|
| Real estate equity | Excluded | Illiquid until sold or refinanced |
| Business assets | Excluded | Not readily accessible personal liquidity |
| Cryptocurrency | Often excluded or reduced | Volatility and verification challenges |
| Annuities with surrender fees | Excluded or net of penalty | Limited liquidity before maturity |
| Pledged collateral | Excluded | Already encumbered by another obligation |
| Private investments | Excluded | No reliable market value or liquidity |
Documentation You Will Need
Lenders typically request two to three months of statements for each eligible account — showing account holder name, institution, and current balance. Retirement accounts may need additional documentation confirming borrower ownership and access.
Ryan & Steve review your account list before underwriting to flag excluded assets, verify haircuts, and confirm enough usable liquidity remains after down payment and reserves.
If a significant portion of your net worth sits in excluded categories, we explore whether liquidation, gift funds, or an alternate Non-QM path makes more sense for your Indiana purchase.
Asset documentation checklist
- — 2–3 months statements for each eligible account
- — Account ownership matching borrower name on the loan
- — Retirement account statements with current balance
- — Explanation for any large recent deposits or transfers
Keep Exploring
Related asset depletion guides and Non-QM resources from Ryan & Steve.
How Does Asset Depletion Income Work?
Haircuts, divide-by-term math, and monthly DTI income explained.
Who Qualifies for an Asset Depletion Loan?
Credit, equity, reserves, and liquid asset size guidelines.
How Much Money for an Asset Depletion Loan?
Portfolio size vs. loan amount, term, and reserve requirements.
Asset Depletion Loans Overview
Full program hub and application steps.
2MG Daily
Related Blog Posts
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Frequently Asked Questions
What assets can be used for asset depletion?
Eligible assets typically include cash, checking and savings accounts, brokerage and investment accounts, and retirement accounts such as 401(k), IRA, and Roth IRA — each at program-specific haircut percentages. Guidelines vary by investor.
Can retirement accounts count for asset depletion?
Yes — most programs count retirement at a reduced percentage, often 60–70%, to reflect market volatility and early withdrawal considerations. Some investors require proof of age eligibility for penalty-free access.
What assets are usually excluded?
Common exclusions include real estate equity (unless liquidated), business assets, cryptocurrency on some programs, annuities with surrender penalties, assets already pledged as collateral, and illiquid private investments.
Do I need to move assets to one account?
No — lenders document each eligible account with recent statements. Consolidation is not required, though having clear ownership and accessible accounts simplifies underwriting.
Not Sure Which Accounts Count?
Ryan & Steve will review your portfolio and identify eligible assets against current investor guidelines.
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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