Asset Depletion Loans — Qualify on What You Have

How Asset Depletion Qualification Works

Asset depletion is a method of calculating qualifying income based on a borrower’s liquid and semi-liquid assets rather than employment income. Lenders divide the total eligible assets by the remaining loan term in months to arrive at a monthly income figure.

For example: $1,200,000 in eligible assets divided by 360 months (30-year loan) equals $3,333 per month in qualifying income. This figure is then used alongside any other income sources to meet debt-to-income requirements.

Eligible assets typically include checking and savings accounts, money market accounts, brokerage accounts, and retirement accounts. Retirement accounts are often discounted by 30-40% to account for early withdrawal penalties.

These programs are particularly valuable for retirees, high-net-worth individuals who are between jobs, and borrowers who have sold a business or received a large inheritance.