Asset Depletion Mortgage Loans

Asset depletion loans help people qualify for a mortgage using their savings and investments instead of job income. These loans are for borrowers who have strong assets, but low or no reportable income on paper.

Instead of asking for W-2s or tax returns, the lender looks at your accounts and turns your assets into monthly “income” for qualifying. This can be a powerful option for retirees, early retirees, business owners between ventures, and high-net-worth borrowers.

How Asset Depletion Loans Work

The lender adds up your eligible assets and then uses a formula to turn them into monthly income. That income is used to qualify you for the mortgage.

• All eligible assets are added together
• Some accounts may get a “haircut” or lower percentage for safety
• The total is divided over a set number of months
• The result becomes your qualifying income

You still make your real payments the normal way, but for underwriting, your assets stand in place of a paycheck.

Who Asset Depletion Loans Are For

• Retirees with strong savings but low monthly income
• Early retirees living from investment accounts
• Business owners who keep profits in the bank or brokerage accounts
• Borrowers between jobs or between companies
• High-net-worth borrowers who choose not to show high taxable income

If your balance sheet is strong but your tax returns do not show much income, this loan can be a fit.

Types of Assets That May Be Used

Asset depletion loans can use many types of liquid and semi-liquid accounts. Exact rules depend on the program, but often include:

• Checking and savings accounts
• Money market accounts
• Brokerage accounts
• Stocks, bonds, and mutual funds
• Some retirement accounts, with limits
• Sometimes trust accounts or other verified assets

In general, the more liquid and stable the asset, the better it works for qualifying. Retirement funds may have extra limits based on age and access.

Loan Amounts and LTV Limits

Asset depletion loans fall under the PRMG Non-QM Income Qualifying programs and can offer strong flexibility.

• Up to 89.99% LTV on many primary home purchases (Expanded Prime Core)
• Up to 85% LTV on many Plus options
• Loan amounts up to $3,500,000 (program-specific)
• Cash-out options available, subject to program limits

Two Levels: Core and Plus

Core (Better Pricing)

• Lower interest rates and better pricing
• Best for strong credit and clean history
• Ideal for borrowers with larger, stable asset positions
• Works for primary homes, second homes, and investment properties

Plus (More Flexible)

• More flexibility with credit events and DTI
• Better fit for complex files or more recent changes in income
• More room on property type and some rural locations
• Foreign nationals may be allowed under certain Plus options

Credit and General Requirements

• Minimum credit score typically starts near 660
• Better pricing at 680+ and above
• DTI generally up to 50%, with possible Plus exceptions
• Proof that assets are seasoned and under borrower control

The key is that your assets are large enough, stable enough, and documented well enough to support the loan.

Occupancy and Property Types

• Primary residences
• Second homes
• Investment properties
• 1–4 unit homes
• Condos, including some non-warrantable condos
• Certain rural and unique properties (case-by-case)

Why Asset Depletion Loans Are Powerful

Asset depletion loans recognize that not everyone lives off a paycheck. Many borrowers have spent years saving, investing, and building assets. Some have sold businesses. Some have retired early. Others keep taxable income low on purpose.

These loans let your savings and investments do more than just sit in an account. They can help you:

• Buy a retirement home without showing high monthly income
• Keep tax planning strategies in place while still qualifying for a mortgage
• Use investment accounts to support real estate purchases
• Bridge gaps between business or career changes

Examples of Asset Depletion Borrowers

• Retirees living off investment accounts and Social Security
• Borrowers who sold a business and now live off proceeds
• Investors with large brokerage balances and low W-2 income
• Early retirees who left high-paying jobs but have strong savings
• Borrowers who want to qualify without changing their tax strategy

Start Your Asset Depletion Pre-Qual

You can see how your assets could support a mortgage with a quick online pre-qual. We review your profile and help match it to the right Non-QM asset depletion option.

Start Your Asset Depletion Pre-Qual

Asset Depletion Mortgage FAQ