Asset Depletion Mortgage Calculator

What Is an Asset Depletion Mortgage?

An asset depletion loan (also called asset utilization or asset-based mortgage) is a non-QM program that lets borrowers qualify by dividing eligible liquid assets across a fixed period — typically 240 months on Fannie Mae/Freddie Mac asset-utilization programs, or as little as the loan term on aggressive non-QM products. The result becomes imputed monthly qualifying income for DTI purposes. Designed for retirees, inherited-wealth borrowers, executives between W-2 jobs, and high-net-worth buyers whose 1099/dividend/cap-gain income is irregular but whose net worth is large. Asset depletion loans typically charge 1–1.5% above conventional rates (source: Fannie Mae Selling Guide, Freddie Mac).

How Lenders Calculate Eligible Assets

Cash and savings: 100% counted (checking, savings, money market). Brokerage: 80% counted (stocks, bonds, mutual funds, ETFs) — 20% volatility haircut. Retirement accounts: If borrower is 59½ or older, 70–80% counted (penalty-free withdrawal). If under 59½, 60–70% counted (10% early withdrawal penalty + tax assumed). Excluded: business assets, real estate equity, vehicles, illiquid investments, pending lawsuits/inheritances, life insurance cash value (some lenders count). Deductions: down payment, closing costs, and required reserves are subtracted before depletion. The remaining net asset pool is divided across the depletion period.

Depletion Period Choices

240 months (20 years): Standard on Fannie/Freddie asset-utilization. Conservative income calc; lower DTI capacity. 120 months (10 years): Common on non-QM asset depletion. Higher imputed income → higher loan capacity but more aggressive. Loan term: Most aggressive (30-year term = $X / 360). Highest qualifying income, most lender risk; reserved for high FICO + low LTV. Some lenders use IRS RMD divisors for borrowers 73+, which produce even higher monthly imputed income at older ages. Choose the shortest depletion period accepted by your lender to maximize qualifying income.

2026 Asset Depletion Rates and Underwriting

Conventional asset utilization (Fannie/Freddie) sits at par with conventional rates — about 6.75–7.25% on a 30-year fixed in early 2026. Non-QM asset depletion programs run 7.5–8.5% on similar credit. Most lenders require 700+ FICO, 20–30% down, 6–12 months reserves on top of depletion assets, and 43% DTI cap. Cash-out refinances on asset depletion are limited to 65–75% LTV. Documentation is rigorous: 2 months of statements per account, signed asset verification letters, and proof of source for any large recent deposits.

Asset Depletion vs Other Non-QM Options

Asset depletion: Best for retirees with $1M+ liquid assets. Bank statement loan: Better for self-employed under retirement age with active business income. DSCR loan: Investment property only — qualifies on rental income. P&L-only loan: Self-employed using CPA-prepared profit and loss; lowest documentation. 1099-only: Counts 90% of 1099 income with no expense haircut. Choose asset depletion when retired or living off investments. Compare with our bank statement loan calculator, DSCR calculator, RMD calculator, jumbo loan qualifier.

Last updated April 2026. Estimates only — actual underwriting varies by lender. Consult a licensed mortgage professional. Sources: Fannie Mae, Freddie Mac, CFPB.