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 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.
Quick answer
An asset depletion loan lets you buy or refinance a home using the money you already have instead of a paycheck. The lender adds up your savings, brokerage, and retirement accounts, takes out what you need for the deal, and divides the rest by a set number of months. That number becomes your monthly income on paper. You do not have to sell or spend the money. A real underwriter reads the file.
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. No credit pull. Takes about 2 minutes.
Last updated: September 24, 2026
What Is an Asset Depletion Loan?
An asset depletion loan is a 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.
As of Q3 2026 (September 2026) (PRMG Non-QM Income Qualifying Product Profile, 09/17/2026): Option 1 requires qualified assets of at least the lesser of 1.5 times the loan amount or $500,000 and divides net qualified assets by 84 months; assets count at 100% for cash, 80% for stocks and bonds and 70% for retirement accounts after 6 months of seasoning; Expanded Prime only, minimum credit 660, LTV to 80% on purchase and rate-term, no cash-out.
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 or Refinance (No Cash-Out)
Asset qualifying works when you buy a home or refinance to a better rate or term — up to 80% of your home’s value. The standard asset options do not allow cash-out. Cash-out is only possible on one path (Alternative AUS, which needs $1,000,000 or more in net eligible assets).
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 main formulas. 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 standard asset 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 standard asset program “Asset Utilization” path divides Net Qualified Assets by 84 months to produce income for DTI. The standard asset program “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 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.
Three Calculation Paths — Which One Is Right?
Every asset depletion borrower lands 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. Like the 84-month option, it is purchase and rate/term only (no cash-out), max 80% LTV, and Expanded Prime only.
Asset Depletion Loan Example: The Math Step by Step
Here is a real-world style example. The numbers are round so the math is easy to follow. Your file will use your actual statements.
The buyer: Retired, no job, buying a $900,000 home with 20% down. Loan amount $720,000. Closing costs about $20,000. Required reserves: 6 months of the new house payment, about $36,000.
| Account | Balance | Counted at | Qualified amount |
|---|---|---|---|
| Checking, savings, money market | $400,000 | 100% | $400,000 |
| Brokerage (stocks, bonds, mutual funds) | $500,000 | 80% | $400,000 |
| IRA and 401(k), vested | $300,000 | 70% | $210,000 |
| Total qualified assets | $1,200,000 | $1,010,000 |
Step 1: Take out the money needed for the deal
Down payment $180,000 + closing costs $20,000 + reserves $36,000 = $236,000. Net qualified assets: $1,010,000 − $236,000 = $774,000.
Step 2: Check the minimum for the 84-month option
The rule is the lesser of 1.5 times the loan ($1,080,000) or $500,000. So the minimum is $500,000. The buyer has $774,000. Pass.
Step 3: Turn assets into monthly income
$774,000 ÷ 84 months = $9,214 per month of qualifying income. If the new house payment is $5,400 and other debts are $600, the debt-to-income ratio is about 65%. That is too high. So we look at the other paths.
Step 4: Run the Total Asset Calculation (no ratio)
This option has no debt ratio. Instead, assets must cover: loan $720,000 + down payment $180,000 + closing costs $20,000 + reserves $36,000 + five years of current monthly debts ($600 × 60 = $36,000). Total needed: $992,000. Qualified assets: $1,010,000. Pass. The file is approved on this path with no employment and no income listed on the application.
This is why we run the math every way before we pick a path. One option fails and another passes on the same statements. Send us your asset summary and we will show you which one clears.
Asset Depletion Loans for Retirees
Most people who ask about this loan are retired or close to it. They have money saved but no paycheck. A normal mortgage looks at income first, so it can turn a millionaire away. Asset depletion fixes that.
Here is what matters if you are retired. You do not need a job. There is no age limit. Your IRA and 401(k) count at 70% of the vested balance, and you do not have to be taking withdrawals. Your Social Security, pension, or annuity can be added on top of the asset income, as long as the account paying that income is not also counted in the asset math. Your money stays invested. Nothing has to be sold or spent.
One thing to plan for: if most of your money sits in a business account, it does not count. Move it to a personal account and let it season for six months before you apply.
Reserves and Residual Income Rules
Two rules trip people up on asset-based files. Both are simple once you see them.
Reserves. Reserves are months of the full house payment (principal, interest, taxes, insurance, and HOA) left in the bank after closing. On the standard asset program, loans up to $2,000,000 need 6 months. Loans of $2,500,000 need 9 months. Loans of $3,000,000 and up need 12 months. First-time buyers always need at least 6 months. Reserves are pulled out of your asset total before the income math runs, so they lower your qualifying income a little.
Residual income. On a primary or second home, the underwriter also checks what is left over each month after every bill. On the Expanded Prime program that is $2,500 per month, plus $150 for each dependent. The asset-based income counts toward this test the same as a paycheck would.
Asset Depletion vs. Asset Utilization vs. Asset Dissipation
You will see three names for the same idea. They all mean turning savings into qualifying income. The differences are in which formula runs.
| Term | What it means here | Formula |
|---|---|---|
| Asset Utilization (Asset Qualification) | The debt-ratio option on the standard asset program | Net qualified assets ÷ 84 months = monthly income |
| Asset Depletion | The total-asset option on the standard asset program. No ratio. | Assets must cover loan + down payment + costs + reserves + 5 years of debts |
| Asset Depletion (Alternative AUS) | A separate program for larger asset bases | Net eligible assets ÷ 240 months; $1,000,000 minimum; cash-out allowed |
| Asset Dissipation | An industry nickname for the same idea. Not a separate program. | Whichever option above fits the file |
What You Need to Send Us
Full statements, all pages, for every personal account you want counted. The statements must show six months of history, and nothing can be more than 30 days old at closing. Bank-linking apps like AccountChek are not accepted on this program, so plan on real statements. If money is in a trust, we need the trust agreement and trustee statements. A credit report is pulled for every borrower. On the Alternative AUS path, two years of tax returns and transcripts are also required. That is it. No pay stubs, no employer calls, no W-2s.
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 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
What is an asset depletion loan?
An asset depletion loan is a mortgage that uses your savings, brokerage, and retirement accounts as income. The lender adds up the eligible accounts, subtracts what you need for the deal, and divides the rest by a set number of months. That result is your monthly qualifying income. No job or tax-return income is required for the person whose assets are used.
How much do I need in assets to qualify?
On the standard asset program, the 84-month option needs the lesser of 1.5 times the loan amount or $500,000 in qualified assets, after down payment, closing costs, and reserves are removed. The Total Asset option needs enough to cover the loan, down payment, closing costs, reserves, and five years of your current monthly debts. The Alternative AUS path needs $1,000,000 in net eligible assets.
How is asset depletion income calculated?
First, each account is counted at a set percentage: 100% of checking, savings, and money market, 100% of a trust where you are the sole beneficiary, 80% of stocks and bonds, and 70% of retirement accounts. Then down payment, closing costs, and reserves are subtracted. On the 84-month option, the rest is divided by 84 to get monthly income. On the Alternative AUS path it is divided by 240.
Can I use asset depletion for a cash-out refinance?
Not on the standard asset program. Both the 84-month option and the Total Asset option are for purchases and rate-and-term refinances only, with a maximum of 80% loan-to-value. Cash-out is only allowed on the Alternative AUS asset depletion path, which requires at least $1,000,000 in net eligible assets.
Do I need to actually withdraw money from my accounts?
No. Your money stays invested. The depletion math is only a way to show you can pay the loan. You are not required to sell or spend anything. The funds do need to be yours to access, but there is no rule that says you must start taking withdrawals.
Can I combine asset depletion with W-2 or self-employment income?
Not from the same person. If you are an account holder on the assets being used, your job income cannot be added on top. A co-borrower who is not on the asset accounts can still use their job income. Pension, Social Security, and annuity income can be combined as long as the account paying it is not also in the asset math.
Are retirement accounts counted at full value?
No. Vested IRA, 401(k), and other retirement accounts are counted at 70% of the balance. The 30% haircut covers taxes and early-withdrawal penalties. Stocks and bonds are counted at 80%. Checking, savings, and money market accounts count at 100%.
Can pension or Social Security stack with asset depletion?
Yes. Pension, Social Security, and annuity income can be added to your asset-based income. The one rule is that the account producing that income cannot also be counted in the asset calculation. The same dollars cannot be used twice.
Is there an age limit for an asset depletion loan?
No. There is no minimum or maximum age. A 35-year-old with a large brokerage account qualifies the same way a 75-year-old retiree does. You do not need to be retired to use this loan.
Can I use asset depletion to buy an investment property?
Not on the Alternative AUS path, which is limited to primary homes with 1 to 2 units and second homes. For a rental property, a DSCR loan is usually the better tool because it qualifies on the rent the property earns instead of your personal income.
Do I need tax returns for an asset depletion loan?
It depends on the path. The Total Asset option on the standard asset program does not require income or employment to be listed on the application at all. The Alternative AUS path requires the most recent two years of tax returns and transcripts. Either way, your tax-return income is not what qualifies you. Your assets are.
How long do my assets need to be in the account?
Six months. Every account you want counted must show six months of history. All asset statements must be dated within 30 days of closing. Money moved from a business account needs to sit in a personal account for six months before it counts.
What is the maximum loan-to-value for asset depletion?
80% on every asset depletion path. That means at least 20% down on a purchase, or at least 20% equity on a refinance. Loan amounts go up to $3,000,000. First-time home buyers are capped at $1,500,000 and need 6 months of reserves.
Is asset depletion the same as asset dissipation?
Yes. Asset dissipation is just another name for asset depletion. Some lenders also say asset utilization or asset qualification. On our programs, asset utilization is the option that divides by 84 months and runs a debt ratio, while asset depletion is the option that checks whether your total assets cover the loan with no ratio at all.
Does a computer approve an asset depletion loan?
No. This program is not run through an automated system. A real underwriter reads the file, applies the asset percentages, and fills out the asset calculation worksheet. That is why we run the math every way before we submit, so the path we pick is the one that clears.
Related Loan Programs
Main Hub
Home Loans Without Tax Returns
Full overview of every alternative-income 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: September 24, 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.
Source: JD.Mortgage Team at PRMG, Asset Depletion Loans, updated September 2026, https://jd.mortgage/asset-depletion-loans/
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Related Resources
Asset depletion on a refinance — why the 84-month path blocks cash-out and the 240-month path allows it.