Quick answer
An asset depletion HELOC qualifies you on your liquid assets instead of your income. The lender takes eligible balances (checking, savings, brokerage, and retirement accounts, with some counted at a discount), divides them over a set number of months, and treats the result as monthly income. It fits retirees and high-net-worth borrowers with low reported income. Our program allows debt-to-income up to 50% on the combined income figure.
Requirements at a glance
| Requirement | Most lenders | Our program |
|---|---|---|
| Income documents | Pay stubs, W-2s, or tax returns | 2–3 months of statements for the accounts you're using |
| Eligible assets | Rarely counted as income | Checking, savings, brokerage, and vested retirement accounts |
| How income is figured | N/A | Eligible assets divided by a set number of months |
| Debt-to-income | 43–45% or lower | Up to 50% |
| Combined loan-to-value | 80–85% | Up to 90% in certain cases |
| Can combine with other income | Sometimes | Yes: Social Security, pension, part-time, or rental income |
Typical industry ranges as of September 2026. Our program terms depend on credit, property, occupancy, and the full file; not a commitment to lend.
How asset depletion works
Lenders add up your eligible liquid assets, apply a discount to accounts that can drop in value or carry taxes and penalties on withdrawal (retirement and brokerage accounts are often counted at a percentage of the balance), subtract anything needed for closing and reserves, and then divide by a set number of months. The result is treated as monthly income for debt-to-income.
You don't have to actually withdraw the money. It's a way of proving you can carry the payment. Asset depletion can stand alone or be added to Social Security, a pension, or part-time income. For more on qualifying in retirement, see our HELOC for seniors guide.
Example: $1.2 million in assets, little income
| Account | Balance | Counted (example) |
|---|---|---|
| Savings and checking | $150,000 | $150,000 (100%) |
| Brokerage account | $450,000 | $315,000 (70%) |
| IRA / 401(k), vested | $600,000 | $360,000 (60%) |
| Total counted | $1,200,000 | $825,000 |
Divided over 240 months, $825,000 becomes about $3,438 a month of qualifying income. Add $2,800 a month of Social Security and the borrower has roughly $6,238 a month to qualify with, instead of $2,800.
Illustrative only. Discount percentages and the number of months vary by program.
Who it fits
- Retirees with significant savings but modest monthly income
- Business owners between ventures or after a sale
- High-net-worth borrowers who live off investments
- Early retirees not yet drawing Social Security or pensions
- Anyone whose tax return doesn't reflect their real financial strength
How it works: 3 steps
- Get a rate estimate. Soft credit pull only. Tell us the property, what you owe, and how you earn; we tell you which path fits and what line size to expect.
- Send your documents. Usually 2–3 months of statements for each account you're using, plus ID, your mortgage statement, homeowners insurance, and any other income you'd like counted. We review them before anything is ordered, so you know where you stand early.
- Close and draw. Many files use an automated valuation instead of an in-person appraisal. Timing depends mostly on valuation, title, and how quickly documents come in.
Related programs: no-doc HELOC · HELOC for seniors · bank statement HELOC
Frequently asked questions
What is an asset depletion HELOC?
An asset depletion HELOC is a home equity line of credit that qualifies you by converting your eligible liquid assets into a monthly income figure, instead of relying on employment income. It's designed for retirees and high-net-worth borrowers with low reported income.
Which assets count for asset depletion?
Usually checking and savings, brokerage accounts, and vested retirement accounts such as IRAs and 401(k)s. Retirement and investment accounts are often counted at a percentage of the balance. Assets must be seasoned and documented with recent statements.
Do I have to withdraw my money?
No. The assets only prove you can carry the payment. You keep your investments invested.
Can I combine asset depletion with Social Security or a pension?
Yes. Most programs let you add asset-depletion income to Social Security, pension, annuity, rental, or part-time income. The total is used for debt-to-income, which can go up to 50% on our program.
Is a reverse mortgage better than an asset depletion HELOC?
It depends. A HELOC keeps full ownership flexibility and has payments; a reverse mortgage (62+) has no required monthly mortgage payment but higher upfront costs. If you have strong assets and want low costs, an asset depletion HELOC is often worth comparing first.
Which states is the asset depletion HELOC available in?
Audi Garner (NMLS #190235, West Capital Lending NMLS #1566096) is licensed in 22 states: Alabama, Arizona, Arkansas, California, Colorado, DC, Florida, Hawaii, Idaho, Iowa, Kansas, Maine, Maryland, Minnesota, Missouri, North Dakota, Oregon, Pennsylvania, South Dakota, Tennessee, Virginia, and Washington.
Talk to a licensed HELOC lender
Get a rate estimate or ask a question — direct answer from Audi Garner, Branch Manager & Broker (NMLS #190235). No sales pitch. No hard credit pull.
Get a 60-second rate estimate
Soft pull only. Written quote emailed within 1 business day.
Ask Audi a HELOC question
Direct answer from a licensed originator. Usually within 1 business day.
Related HELOC resources
HELOC for Seniors
How retirees qualify, and when a reverse mortgage fits.
No-Doc HELOC
Qualify without tax returns.
HELOC vs. Reverse Mortgage
Which one fits retirement?
