Quick answer
An asset depletion (or asset utilization) mortgage is a non-QM loan that converts documented, liquid assets into monthly qualifying income by dividing them over a set number of months, often 60 to 360 depending on the program. Example: $1.2 million in eligible assets over 60 months is $20,000 a month. Retirement accounts are often counted at a reduced percentage.
How asset depletion works
Traditional mortgages need income: pay stubs, tax returns, pension or Social Security. If most of your wealth sits in savings and investments, that can leave you looking unqualified on paper. Asset depletion solves that by treating a slice of your assets as monthly income.
The lender totals your eligible assets, subtracts what you need for the down payment, closing costs and required reserves, and divides the rest by a set number of months. The result is added to any other income you have.
Example: $1,200,000 in eligible assets ÷ 60 months = $20,000 a month in qualifying income. Over 360 months, the same assets would count as about $3,333 a month, so the program's divisor matters a lot.
Asset depletion income calculator
Example only. Programs count assets differently.
Get an Asset Depletion Quote →Example assumes stocks and funds at 90% and retirement accounts at 70% of value; actual percentages, eligible accounts and the number of months vary by lender. Not a loan offer; all loans subject to credit approval and underwriting.
Which assets count
- Checking, savings and money market accounts: usually counted at full value.
- Stocks, bonds and mutual funds: often counted at a reduced percentage to allow for market swings.
- Retirement accounts (401(k), IRA): often counted at a lower percentage to allow for taxes and penalties if withdrawn early.
- Usually not counted: your home equity, business assets you cannot easily access, cryptocurrency (at many lenders), and gifted funds that just arrived.
Lenders typically want two or more months of statements for each account so they can see the money has been there.
Typical requirements
| Item | What lenders typically look for |
|---|---|
| Assets | Liquid, documented and seasoned, often 2+ months of statements |
| Divisor | Varies widely, from about 60 to 360 months |
| Down payment / equity | Often 20%–30% |
| Other income | Can be combined with Social Security, pension or wages |
Typical ranges, not a quote. Terms vary by lender, property type, occupancy and loan size.
Who it fits
- Retirees and early retirees with savings but modest monthly income.
- Business owners who recently sold a company.
- Investors who live on portfolio returns and do not want to sell assets to buy a home.
FAQ
How is income calculated on an asset depletion loan?
The lender totals eligible assets, subtracts the down payment, closing costs and reserves, then divides the remainder by a set number of months. The divisor varies by program, often from 60 to 360 months.
Do retirement accounts count for asset depletion?
Usually, but often at a reduced percentage of their value to allow for taxes and early-withdrawal penalties.
Do I have to spend my assets?
No. The calculation is only used to show ability to repay. You keep your assets.
Can I combine asset depletion with Social Security or a pension?
Many programs allow it, which can help you qualify for a larger loan.
Part of the self-employed and non-QM mortgage guide: bank statement, P&L, 1099, asset depletion, DSCR, WVOE, ITIN and foreign national loans.
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