An Asset Depletion Mortgage (also called an asset-based mortgage) allows borrowers to qualify for a home loan using their liquid assets rather than traditional employment income.

Instead of relying on pay stubs or tax returns, lenders calculate a qualifying “income” by spreading your verified assets over a set number of months.

This loan is ideal for retirees, investors, and high-net-worth individuals who have significant assets but limited or irregular income.

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What Is an Asset Depletion Mortgage?

An asset depletion mortgage is a loan program that:

• Uses liquid assets to determine repayment ability

• Converts assets into a monthly qualifying income

• Does not require traditional employment income

Lenders calculate an income equivalent by dividing eligible assets over a defined term — often:

• 360 months (30 years), or

• 240–270 months (depending on lender guidelines)

This calculation creates a monthly income figure used for debt-to-income qualification.

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How Asset Depletion Income Is Calculated

While formulas vary by lender, a simplified example:

If a borrower has:

• $1,000,000 in eligible liquid assets

A lender may divide that by:

• 360 months = $2,777/month qualifying income
  OR

• 270 months = $3,703/month qualifying income

Some lenders apply discounts to certain asset types before calculating income.

Eligible assets may include:

• Checking and savings accounts

• Brokerage accounts

• Retirement accounts (often discounted)

• Certificates of deposit

• Money market funds

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Benefits of an Asset Depletion Mortgage

1. Qualify Without Traditional Income

Perfect for borrowers who:

• Are retired

• Live off investments

• Have inconsistent income

• Are between jobs but asset-rich

2. Leverage Investment Portfolios

Allows you to qualify without liquidating assets.

3. Flexible Qualification Method

Ideal for borrowers who do not receive W-2 income or prefer not to use tax returns.

4. Potential for Larger Loan Amounts

Qualification is based on total asset value rather than reported income.

5. Preserve Liquidity

You are not required to withdraw or spend the assets — they are used for qualification purposes.

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Who Qualifies for an Asset Depletion Loan?

Eligibility typically includes:

Significant Liquid Assets

• Substantial savings or investment accounts

• Assets must be verifiable and seasoned

Strong Credit Profile

• Often 680+ minimum credit score

• Stronger credit improves pricing

Stable Financial History

• Clean credit history

• Demonstrated responsible asset management

Sufficient Asset Coverage

Assets must be adequate to support:

• Monthly housing payment

• Other debts

• Required reserves

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Documentation Required

When applying for an asset depletion mortgage, borrowers typically provide:

• Bank statements

• Brokerage account statements

• Retirement account statements

• Credit authorization

• Government-issued ID

Lenders will calculate the income equivalent based on eligible assets.

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Asset Depletion vs Traditional Mortgage

Asset depletion loans are designed for borrowers whose wealth is asset-based rather than income-based.

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Who Benefits Most from Asset-Based Mortgages?

This loan may be ideal for:

• Retirees with substantial savings

• High-net-worth individuals

• Investors living off dividends or capital gains

• Individuals with trust income

• Borrowers with large brokerage accounts

It provides a pathway to homeownership or refinancing without traditional income documentation.

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Frequently Asked Questions About Asset Depletion Loans

Do I Have to Spend My Assets?

No. The assets are used for qualification purposes only — you are not required to liquidate them.

Are Retirement Accounts Eligible?

Yes, though lenders may discount the value (for example, 60–70%) before calculation.

Are Interest Rates Higher?

Rates may be slightly higher than standard conforming loans due to the alternative income structure.

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Is an Asset Depletion Mortgage Right for You?

An asset depletion loan may be a strong solution if you:

• Have substantial liquid assets

• Lack steady W-2 income

• Want to avoid traditional income documentation

• Prefer flexible underwriting

With the right asset profile, this loan provides a powerful alternative to conventional qualification methods.

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Explore Asset-Based Mortgage Options with MORTGAGEinc

If you have significant assets and want to explore flexible mortgage qualification options, our team can help you structure a loan that aligns with your financial profile.

Contact MORTGAGEinc today:
📧 info@mortgage-inc.com

Let’s turn your assets into home financing power.