Asset Depletion Loans

Top Questions Regarding our Asset Depletion Loan

Asset Depletion Mortgage

Asset Depletion Mortgage

Asset Depletion Mortgage Loan

An asset depletion mortgage is generally for "high-net worth" individuals.  These loans allow borrowers to qualify for a mortgage by using their substantial assets instead of traditional income from employment. This type of loan is particularly beneficial for individuals who are self-employed, retired, or have significant assets but limited verifiable income.

How Asset Depletion Mortgages Work

  • Calculation of Income: Lenders calculate the borrower's monthly 'income' by dividing their total liquid assets by 360 months (the duration of most mortgage loans). For example, if a borrower has $2,000,000 in liquid assets and another $500,000 in retirement accounts, the lender might count 70% of the retirement funds and 100% of the liquid assets. This total is then divided by 360 to determine the monthly income used for qualifying purposes.
  • Eligible Assets: Assets that can be used include checking and savings accounts, money market accounts, CDs, stocks, bonds, mutual funds, retirement accounts (401(k), IRA), and equity in other real estate holdings.
  • Loan Terms: Borrowers do not need to liquidate their assets immediately. The assets are used to demonstrate the ability to make mortgage payments.

Eligibility Criteria

  • Substantial Assets: Borrowers must have significant liquid assets. The exact amount varies by lender but generally includes savings accounts, investments, and retirement accounts.
  • Credit Score: A credit score of 680-700 or higher is often preferred.
  • Down Payment: Typically, a down payment of at least 20% is required.
  • Debt-to-Income Ratio (DTI): A DTI ratio of 43% or lower is usually needed, though some lenders may allow up to 50% depending on other factors such as credit score and asset reserves.


  • Alternative Qualification Method: Ideal for borrowers with substantial assets but limited verifiable income, such as retirees or self-employed individuals.
  • Flexibility: Can be used for various types of properties including primary residences, secondary homes, and investment properties.
  • No Employment Verification Needed: Does not require proof of employment income like traditional mortgages.


Asset depletion mortgages offer a viable solution for asset-rich individuals who face challenges qualifying for traditional income-based mortgage loans.

What is The Eligibility Criteria for Obtaining an Asset Depletion Mortgage?
The eligibility criteria for obtaining an asset depletion mortgage, including asset requirements, credit history, debt-to-income ratio, and other key factors.
💼 Asset Requirements

To qualify for an asset depletion mortgage, borrowers must have substantial assets. These can include liquid assets like cash, stocks, and bonds, as well as retirement accounts under certain conditions.

📊 Credit History

A strong credit history is typically required. Most lenders look for a minimum FICO score, often around 680 or higher, to ensure the borrower is creditworthy.

📉 Debt-to-Income Ratio

A low debt-to-income (DTI) ratio is crucial. Lenders prefer borrowers with a DTI ratio that demonstrates their ability to manage monthly payments without financial strain.

🏦 Asset Calculation

Lenders calculate the income from assets by dividing the total value of the assets by a specific number of months, often 84. This calculated income is then used to determine loan eligibility.

📅 Age Considerations

For retirement accounts, borrowers must meet certain age requirements to use these assets for qualification. Typically, the borrower must be of retirement age or taking distributions.

💰 Down Payment

A down payment of at least 20% is often required. This ensures that the borrower has a significant stake in the property and reduces the lender’s risk.

📜 Documentation

Borrowers must provide detailed documentation of their assets. This includes recent asset statements, proof of ownership, and verification of the asset values.

🏠 Suitable Candidates

Asset depletion mortgages are ideal for individuals with substantial assets but little to no regular income, such as retirees or self-employed individuals with irregular income streams.

🔍 Lender Criteria

Eligibility criteria can vary by lender. It’s important to check specific lender requirements, as some may have additional conditions or more flexible terms.

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