Asset Depletion Loans for Flexible Mortgage Qualification

If you’ve built up substantial savings or investments but don’t receive a steady paycheck, an Asset Depletion Loan may be the ideal mortgage solution. This loan program allows borrowers to use their existing liquid assets as a form of qualifying income—without needing W-2s, tax returns, or a job. Whether you’re retired, semi-retired, self-funded, or simply prefer to rely on your financial portfolio, this non-traditional approach helps you qualify on your terms.

What Is an Asset Depletion Loan?

Asset Depletion Loans fall under the umbrella of non-QM (non-qualified mortgage) products. These loans allow you to qualify based on the assets you’ve already accumulated, rather than traditional forms of income. Instead of verifying employment or self-employment income, lenders calculate qualifying income by dividing your total eligible liquid assets by a set term—typically 60, 84, or 120 months, depending on guidelines.

This is a great solution for financially stable individuals whose reported income doesn’t reflect their actual financial strength. If your wealth is held in checking, savings, retirement accounts, or brokerage portfolios, an Asset Depletion Loan could provide a much-needed alternative to traditional qualifying methods. Explore more non-QM mortgage solutions here.

How Income Is Calculated From Assets

Here’s a simple breakdown: If you have $960,000 in qualifying assets and the lender uses a 10-year (120-month) depletion term, your monthly qualifying income would be $8,000. That figure is then used to calculate your debt-to-income (DTI) ratio, which determines how much mortgage you can afford.

Common qualifying assets include:

• Cash in checking or savings accounts
• Retirement funds (IRA, 401(k), etc.)
• Brokerage accounts, stocks, and bonds
• Mutual funds or trust distributions
• Other verified liquid financial assets

Keep in mind: Lenders apply adjustments depending on asset type, account access, and borrower age (especially for retirement accounts). Visit our glossary to learn more about asset-based income qualification.

Who Should Consider an Asset Depletion Mortgage?

This program is especially helpful if you:

• Are retired or semi-retired and living off savings or investments
• Have a strong financial portfolio but minimal reportable income
• Are self-employed with significant tax write-offs
• Want to avoid documenting employment or business history
• Value financial privacy and flexibility

Even if you don’t have a traditional income stream, you may still be able to qualify for the home you want. Submit your information here to request a custom evaluation and we’ll review your asset profile.

Benefits of Asset-Based Lending

Asset Depletion Loans come with a unique set of advantages:

• No job or employment history required
• No W-2s, 1099s, or tax returns needed
• Great for high-net-worth and self-funded individuals
• Applicable to primary homes, second homes, and investment properties
• Streamlined documentation process and faster approvals
• Expanded borrowing power based on total financial strength

This loan structure is especially useful during financial transitions like early retirement, lifestyle changes, or the sale of a business. Compare this option to other flexible loan programs.

Common Questions About Asset Depletion Loans

Do I have to spend or move my assets? No. Lenders only require verification of their existence and accessibility. You’re not withdrawing or liquidating them.

Can moderate-income borrowers use this? Absolutely. Even if you’re not ultra-wealthy, asset-based income may help you qualify if your assets are sufficient.

Is this the same as a reverse mortgage? No. Reverse mortgages are for homeowners 62+ who tap into equity—not liquid assets. Learn more about reverse options here.

Why Work With the JD.Mortgage Team?

Not all lenders offer Asset Depletion Loans, and even fewer know how to structure them effectively. The JD.Mortgage team specializes in unique borrower profiles—including those with limited income documentation—and offers custom loan solutions designed to meet your goals.

We’re experienced in non-QM lending, partnered with top investor networks, and focused on results. When others say no, we often find a way to say yes. Connect with us here and let’s start the conversation.

Explore All Your Mortgage Options

Asset Depletion Loans are just one of many loan programs available through the JD.Mortgage team. We offer flexible and creative lending solutions for nearly every borrower, including:

• VA Loans – even with no minimum credit score
• FHA Loans
• USDA Loans
• Down Payment Assistance Programs
• Investment Property Loans
• Non-QM Loans – including DSCR, Bank Statement, and ITIN
• HELOCs and Second Mortgages
• Reverse Mortgages
• Construction Loans

Let’s match you with the mortgage program that makes the most sense for your life today—and your goals for tomorrow. Get in touch here and let’s get started.