Asset depletion loans let you qualify for a mortgage using your liquid assets, brokerage holdings, and retirement accounts instead of W-2 income or tax returns. The lender divides your eligible assets by a fixed number of months to produce qualifying income, then runs a standard debt-to-income ratio. Asset depletion loans are a Non-QM product built for retirees, business owners, trust beneficiaries, and high-net-worth borrowers whose tax-return income does not reflect their actual ability to pay. Loan amounts go up to $3,000,000 on primary residences and second homes. We are lending in 49 states.
If you have the assets but not the income on paper, this is the loan. No employment verification on the standard asset depletion path. We use your portfolio, retirement accounts, and bank balances to build qualifying income that DTI calculations can run against.
No SSN required. Takes about 2 minutes.
What Is an Asset Depletion Loan?
An asset depletion loan is a Non-QM mortgage that qualifies a borrower using their personal assets instead of employment income. The lender adds up eligible accounts — checking, savings, money market, brokerage, and retirement — applies any required haircuts, subtracts down payment, closing costs, and reserves, then divides the result by a fixed number of months to produce monthly qualifying income. That income is plugged into a standard debt-to-income ratio just like a salary would be. There is no W-2 requirement on this loan and no need to show employment income for the account holder using the assets.
Why Borrowers Use Asset Depletion
No Employment Required
If you are the account holder on the assets used to qualify, you do not need to disclose or verify employment income. Retirees, between-jobs executives, and trust beneficiaries qualify off the portfolio alone.
No Age Restriction
There is no minimum or maximum age for using asset depletion. A 35-year-old with a large brokerage account qualifies the same way a 70-year-old retiree does.
Up to $3,000,000
Maximum loan amount goes up to $3,000,000 depending on credit, LTV, and occupancy. First-time homebuyers are capped at $1,500,000.
Purchase, Refinance, or Cash-Out
All three transaction types are eligible. Pull cash out of your primary or second home using your asset base to qualify.
Retirement Accounts Count
401(k), IRA, and other IRS-recognized retirement accounts are eligible after a 30% haircut. You do not need to be drawing from them today.
Pension and Social Security Stack
Pension, Social Security, and annuity income may be combined with asset depletion income — as long as the assets generating that income are not also used in the depletion calculation.
How Asset Depletion Income Is Calculated
There are two formulas used in the Non-QM market. The right one for your loan depends on whether the lender is running a debt-to-income ratio at all. We use both and run the math two ways to find the path that approves cleanest.
Identify Eligible Assets
We pull statements for every personal account you plan to use. Eligible: checking, savings, money market, brokerage, mutual funds, stocks, bonds, vested retirement accounts, and trusts where you are the sole beneficiary. Not eligible: business accounts, cryptocurrency, foreign accounts, gift funds, borrowed funds.
Apply Haircuts to Each Account Type
On the Non-QM Income Qualifying path: 100% of cash accounts and sole-beneficiary trust assets count, 80% of stocks and bonds count, and 70% of vested retirement accounts count. On the Alternative AUS path, eligible assets follow that program’s asset table with retirement-account haircuts disclosed in the matrix.
Subtract Funds Needed for the Deal
Down payment, closing costs, required reserves, any portion pledged as collateral, and gift or borrowed funds are pulled out of the pool first. What remains is your Net Eligible Assets. Cash-out proceeds are never counted as an eligible asset.
Run the Income Calculation
There are three calculations depending on the program path. The Alternative AUS asset depletion path divides Net Eligible Assets by 240 months. The Non-QM Income Qualifying “Asset Utilization” path divides Net Qualified Assets by 84 months to produce income for DTI. The Non-QM Income Qualifying “Asset Depletion” Total Asset Calculation has no DTI ratio at all — the assets simply need to cover the loan, down payment, closing costs, reserves, and five years of current monthly obligations.
Qualify on the Result
The monthly income figure is treated like any other income for DTI purposes on the paths that use a ratio. We pair it with your housing payment and revolving debts and confirm DTI fits within program limits — up to 49.99% on the Alternative AUS asset depletion path.
Asset Depletion Eligibility at a Glance
Eligible Assets and How They Get Counted
Not every dollar in your portfolio counts at full face value. The Non-QM Income Qualifying asset utilization and asset depletion options apply specific haircuts that reflect how easily each asset class can be liquidated and how stable its value is. Here is the standard treatment.
Cash and Cash Equivalents — 100%
Checking, savings, money market, and CDs count at full face value. These are the cleanest dollars in the calculation. The accounts must be personally held, in the borrower’s name, and seasoned per program requirements.
Trust Assets — 100% When You’re the Sole Beneficiary
Trust funds count at 100% when the borrower is the creator, trustee, and sole beneficiary. Trustee statements and the trust agreement are required for documentation.
Stocks, Bonds, and Mutual Funds — 80%
Brokerage holdings are discounted to 80% of their remaining value after subtracting any portion used for down payment, closing costs, or reserves. The haircut accounts for market volatility between application and closing.
Vested Retirement Accounts — 70%
401(k), IRA, and other IRS-recognized retirement accounts are discounted to 70% of vested value. The haircut accounts for early-withdrawal penalties and taxes. The borrower must be the sole owner with full access to withdraw the funds without penalty as of the note date.
What Does Not Count
Business accounts are excluded entirely from the asset pool. Gift funds, borrowed funds, and any portion of an asset pledged as collateral for another loan are also excluded. Cash-out proceeds from the subject transaction cannot be counted as an eligible asset.
Account holder rule: Asset depletion cannot be combined with employment income from any borrower who is an account holder on the assets being used. If a co-borrower is not on the asset accounts, that co-borrower’s employment income may still be used for qualifying.
Two Calculation Paths — Which One Is Right?
Most asset depletion borrowers land in one of three calculation buckets. The right one depends on loan size, asset base, and whether the file needs a debt-to-income ratio to clear underwriting.
Path 1 — Alternative AUS Asset Depletion (240 months)
Net Eligible Assets divided by 240 months. Requires a minimum $1,000,000 in net eligible assets. Maximum 80% LTV. Purchase, rate/term, and cash-out all eligible. Maximum DTI 49.99%. Two years of tax returns required.
Path 2 — Asset Utilization, Debt Ratio Calculation (84 months)
Net Qualified Assets divided by 84 months. Borrower must have the lesser of 1.5x the loan balance or $500,000 in qualified assets, net of down payment, closing costs, and reserves. This is the higher-monthly-income path because of the shorter divisor, but it is not allowed on cash-out transactions and is restricted to the Expanded Prime program.
Path 3 — Asset Depletion, Total Asset Calculation (no DTI)
No debt-to-income ratio is run at all. Instead, allowable assets must cover the full loan amount, down payment, closing costs, required reserves, and five years of current monthly obligations. Employment and income do not need to be disclosed on the 1003. This is the cleanest path for retirees with a large asset base and no W-2 income to source.
Asset Depletion vs. Conventional Mortgage
Asset Depletion Myths We Hear Every Week
Myth: I have to be retired to use asset depletion
Reality: There is no age restriction. A 40-year-old executive between jobs with a large brokerage account qualifies the same way a 70-year-old retiree does.
Myth: I have to spend down the assets
Reality: The “depletion” is a math model, not a requirement to actually liquidate anything. Your portfolio stays invested. The lender simply divides the eligible balance by 240 months (or 84 months on the utilization path) to produce a qualifying figure.
Myth: My business bank account counts
Reality: Business funds are excluded from the asset depletion calculation. Only personally held accounts count. If your wealth is sitting in a business operating account, it needs to be moved into a personal account and seasoned first.
Myth: Asset depletion means no tax returns
Reality: The Alternative AUS asset depletion path requires the most recent two years of tax returns plus tax transcripts. The Total Asset Calculation path on the Non-QM Income Qualifying program is the no-income-disclosed option — that one does not require income on the 1003.
Myth: My crypto and foreign accounts count
Reality: Eligible assets must be held in a US account. Cryptocurrency holdings are not counted in asset depletion calculations. Foreign brokerage and bank accounts are also excluded.
Asset Depletion FAQ
How much do I need in assets to qualify?
On the Alternative AUS asset depletion path, a minimum of $1,000,000 in net eligible assets is required after subtracting down payment, closing costs, and reserves. On the Non-QM Income Qualifying Asset Utilization path, you need the lesser of 1.5x the loan balance or $500,000 in qualified assets.
Can I use asset depletion for a cash-out refinance?
Yes, on the Alternative AUS asset depletion path. Cash-out is also allowed on the Non-QM Income Qualifying Asset Depletion Total Asset Calculation. The Asset Utilization (84-month) path does not allow cash-out.
Do I need to actually withdraw money from my accounts?
No. Your portfolio stays invested. The depletion calculation is a qualifying math model only. The funds need to be accessible without penalty as of the note date, but you are not required to liquidate anything.
Can I combine asset depletion with W-2 or self-employment income?
Not on the same accounts. Asset depletion may not be combined with employment income for any borrower who is an account holder on the assets being used. If a co-borrower is not on the asset account, that co-borrower’s employment income can still be used.
Are retirement accounts counted at full value?
No. On the Non-QM Income Qualifying program, vested retirement accounts are discounted to 70% to account for early-withdrawal penalties and taxes. The borrower must be the sole owner with full access to the funds without penalty as of the note date.
Can pension or Social Security stack with asset depletion?
Yes. Pension, Social Security, and annuity income can be combined with asset depletion income as long as the assets generating that income are not also being used in the depletion calculation. The same dollars cannot be counted twice.
Is there an age limit?
No. There are no age restrictions on the use of asset depletion as a source of qualifying income.
Can I use asset depletion to buy an investment property?
Investment properties are not eligible on the Alternative AUS asset depletion path. For an investment property purchase qualified on the property’s rental income, a DSCR loan is the standard tool.
Related Non-QM Loan Programs
Main Hub
Non-QM Mortgage Loans
Full overview of every Non-QM program we offer — bank statement, DSCR, asset depletion, 1099, P&L, ITIN, and foreign national financing in one place.
Bank Statement Loans
Qualify on 12 or 24 months of personal or business bank statement deposits. Built for self-employed borrowers whose tax returns understate true income.
DSCR Loans
Investment-property loans qualified by the property’s rental income, not the borrower’s personal income. The standard tool for investor portfolios.
1099 Income Loans
Use gross 1099 income to qualify instead of net income on tax returns. Built for contractors, commission earners, and gig-economy professionals.
P&L Statement Loans
Qualify using a CPA-prepared profit and loss statement. The fastest documentation path for established self-employed borrowers.
Written by
J.D. Peck
Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group, Inc. NMLS #314883. 25+ years of mortgage experience, 3,100+ closed loans, Scotsman Guide Top Originator 2026.
Last updated: May 2026. Loan program parameters subject to change — confirm current eligibility on your specific scenario before relying on any figure shown.
See What You Qualify For
Send us your asset summary. We’ll run the math three ways — 240 months, 84 months, and the Total Asset Calculation — and tell you which path approves cleanest at the best terms.
No SSN required. Takes about 2 minutes.