Asset Depletion Loans for High-Asset Borrowers

Some borrowers don’t rely on monthly income — their strength is in what they’ve already built. An Asset Depletion Loan lets you use savings, investments, or retirement accounts to show your ability to repay a mortgage. It turns assets into qualifying income without requiring job-based paperwork. The JD.Mortgage team at PRMG helps structure these files so your wealth works for you.

What Is an Asset Depletion Loan?

This program converts verified liquid assets into an income stream on paper. We total your eligible assets, apply a factor (usually dividing by the loan term or an allowed shorter period), and use that figure as qualifying income. It’s ideal for retirees, investors, or anyone living from savings or portfolio income.

Who This Helps

• Retirees drawing from investment or retirement accounts
• High-net-worth borrowers whose wealth is in savings, stocks, or managed funds
• Self-employed owners with large retained earnings or business reserves
• Real-estate investors balancing multiple income streams

How the Income Is Calculated

We review your eligible assets — checking, savings, investment, and retirement accounts — and divide the usable balance by a set term to find monthly income. For example, $1,200,000 in verified assets divided by 120 months could equal $10,000 per month of qualifying income.

• Funds must be verified and accessible
• Retirement accounts may require age verification for penalty-free access
• Gift funds and business reserves can count if documentation is clear

Typical Program Features

• Credit score: many start near 660; stronger profiles reach higher LTV
• Down payment: higher leverage for borrowers with large verified assets
• Loan amounts: from small balances up to multi-million approvals
• Terms: fixed and ARM options, often with interest-only periods
• No PMI: private mortgage insurance is not used on these programs

Eligible Assets

Programs may allow any mix of:

• Checking and savings accounts
• Money-market and brokerage accounts
• Mutual funds and bonds
• Retirement accounts (401k, IRA, SEP, etc.)
• Trust funds or annuities with verifiable access

Why Borrowers Choose Asset Depletion Loans

These loans make it possible to qualify without proving ongoing employment. Instead of explaining every dividend or sale, you simply verify your balances. It’s cleaner, faster, and perfect for buyers or refinancers with established savings.

Property Types You Can Finance

• Primary homes, second homes, and investment properties
• 1–4 unit homes, condos, and townhomes
• Some non-warrantable condos depending on the program

Rates and Costs

Rates are typically higher than conventional loans because documentation is more flexible. Your pricing depends on credit, assets, and leverage. The JD.Mortgage team compares multiple channels to find the strongest structure for your profile.

Why the JD.Mortgage Team

As a hybrid lender and broker, we can access diverse programs and underwrite with common sense. We build clear income calculations up front so underwriting runs smoothly and closing stays on track.

Related Guides

• Loan Options
• Non-QM Loans
• Bank Statement Loans
• DSCR Loans

Consumer Education

Learn more about mortgage basics at the Consumer Financial Protection Bureau (CFPB).

Frequently Asked Questions

Do I need a job to qualify for an Asset Depletion Loan?

No. We use verified assets to demonstrate repayment ability instead of employment income.

Which assets count?

Cash, savings, investments, and retirement funds usually qualify. The assets must be liquid and accessible.

Can I combine asset depletion with other income?

Yes. Some programs allow partial use of assets plus traditional or rental income to strengthen approval.

How much of my assets are counted?

Typically 70–100 percent of liquid accounts and 60–80 percent of retirement balances, depending on age and accessibility.

Is there a minimum asset level?

Yes, enough to cover the loan term or required reserve factor. We’ll calculate your exact number up front.

Are interest-only payments available?

Often yes. Many programs offer an interest-only period to maximize flexibility and preserve liquidity.

Is PMI required?

No. Private mortgage insurance is not used on these programs.

Can this be used for investment properties?

Yes, most programs allow second homes and rentals as long as reserves meet the guideline.

Connect with the JD.Mortgage Team to learn how your assets can qualify you for financing.