How does an asset depletion loan let me qualify on assets instead of income?

An asset depletion loan converts your liquid assets into a monthly qualifying income using a set formula, so you can qualify on your savings and investments instead of a paycheck, on the condition that you hold enough eligible assets to support the payment. You do not sell or spend anything. The lender uses the math to prove you have the wealth to cover the loan.

It solves a paradox that frustrates wealthy borrowers constantly. A retiree with two million dollars invested and small monthly distributions gets declined for a loan a salaried worker with no savings gets easily, because conventional underwriting reads the paycheck, not the balance sheet. This loan reads the balance sheet.

What is an asset depletion loan?

It is a non-QM loan, also called asset dissipation or asset-based qualifying, that turns your verified liquid assets into a calculated monthly income. That figure is then used to set your debt-to-income ratio and loan amount, just like real income on a conventional loan. The key point is that the depletion is a math model, not a requirement to actually draw down your accounts. Your portfolio stays invested.

How does the calculation work?

Asset depletion formula. Verified as of July 13, 2026. Source: non-QM lender guidelines. Formula: (eligible assets minus down payment, closing costs, and required reserves) divided by the depletion period equals monthly qualifying income Depletion period (divisor): varies by lender, commonly 60, 84, 120, 240, or 360 months Example: $700,000 in remaining eligible assets divided by 120 months equals about $5,833 per month in qualifying income Shorter divisor, more income: the same $700,000 divided by 60 months equals about $11,667 per month Retirement accounts: often discounted 30 to 40 percent if you are under age 59 and a half

The divisor is the whole game. The same assets produce very different qualifying income depending on which one a lender uses, and that choice can be the difference between an approval and a decline.

Who is an asset depletion loan for?

Four borrower types fit best. Retirees with large investment accounts but little paycheck income. Business owners whose deductions suppress taxable income, who may also weigh a profit-and-loss-only loan. High-net-worth individuals with portfolios rather than wages. And people who recently sold a business and are sitting on the proceeds without new income documentation yet. If your wealth is real but your monthly income on paper is not, this is the loan.

What are the requirements?

You generally need strong credit and a substantial asset base. Most programs want a minimum credit score in the 680 to 720 range, with the best pricing above 740, and enough eligible liquid assets to support the loan, often several hundred thousand dollars or more after covering the down payment and closing costs. Down payments commonly start around 20 percent. Eligible assets are usually checking, savings, brokerage, and some retirement funds, with volatile or restricted holdings discounted.

Do I have to spend my assets?

No, and this is the most common misunderstanding. The loan does not require you to liquidate or draw down anything. The lender uses the depletion formula only to demonstrate capacity, then you keep your portfolio invested and make payments however you choose. As Emmett Clark, licensed in 18 states with access to more than 240 wholesale lenders, I calculate a borrower's qualifying income under each available divisor and place the file with the lender whose formula produces the strongest result. To see what your assets qualify you for, request a personalized quote.

What does it cost?

Usually only modestly more than a conventional loan. Because these borrowers tend to have strong credit and large down payments, pricing is often just slightly above conventional rates. The exact premium depends on your credit, the loan-to-value, and the specific program. For many high-net-worth borrowers, the cost is reasonable given that it finances the home without disturbing their investments or triggering a taxable sale. This article is part of our complete guide to loan types.

Figures verified as of July 13, 2026. Divisors, eligible assets, and pricing vary widely by lender and program.