Asset Depletion Loans: How to Qualify Using Your Savings Instead of Income

An asset depletion loan lets you qualify for a mortgage using your liquid assets instead of income. The lender converts your savings and investments into a monthly income figure on paper, which is ideal for retirees and asset-rich buyers whose actual income looks small.

The problem it solves

Some people have substantial wealth but little documentable income. A retiree living off savings. Someone who sold a business and is sitting on the proceeds. An investor whose money is in the market rather than in a paycheck. On paper, their income looks too low to qualify for a mortgage, even though they could write a check for the house. Conventional underwriting doesn't know what to do with "asset-rich, income-poor." Asset depletion loans exist precisely for this.

How it works

The lender takes your qualifying liquid assets and divides them by a set number of months to produce a monthly "income" figure used to qualify you. For example, dividing your eligible assets by 60 months turns a large balance into a substantial monthly income on paper, even though you're not actually being required to draw it down. Your money stays yours. The calculation is just a way of translating wealth into the income format underwriting needs.

There's often more than one way to count your assets

Some programs use a straight depletion calculation (assets divided by a number of months). Others use an "asset qualifier" approach that can qualify you based on holding assets equal to a percentage of the loan amount, sometimes with no debt-to-income calculation at all. Which approach produces the better result depends on your specific mix of assets and the loan size, which is exactly the kind of thing worth comparing before you commit to one structure.

What counts as qualifying assets

Generally liquid holdings: checking and savings, brokerage accounts, and often retirement accounts (sometimes with an adjustment for your age and access to them). Lenders typically want to see the assets seasoned, meaning they've been in your accounts for a period of time rather than just deposited. Real estate equity and business value usually don't count, this is about liquid, accessible wealth.

Who it's built for

Retirees living on savings and investments rather than a salary. People who've recently sold a business or received a large windfall. High-net-worth buyers whose income is modest relative to their assets. Anyone whose bank and brokerage balances tell a much stronger story than their income documents do. If you have the wealth to comfortably afford a home but your income doesn't reflect it, this is the program designed for your situation. Some of these buyers also weigh a no income, no employment verification mortgage.

What you still need

Like other non-QM programs, this isn't a free pass. Expect solid credit, a down payment, and of course the qualifying assets themselves, verified and seasoned. The program removes the income hurdle, but it does so by leaning on the strength of your asset picture, so that picture needs to be real and documented. This article is part of our guide to alternative documentation loans.