Asset Depletion Mortgage Qualification Calculator
Asset depletion lets retirees with $500K+ in investments qualify for mortgages by dividing 70% of assets by 360 months. $1M assets → $1,944/month income for DTI purposes.
| Total liquid assets | — |
| Retirement asset adjustment (if under 59.5) | — |
| Net assets for depletion calculation | — |
| 70% of net assets | — |
| Divided by 360 months (Fannie Mae) | — |
| Monthly qualifying income | — |
| Mortgage payment (P&I) | — |
| Debt-to-income ratio | — |
Asset depletion (also called 'asset utilization') lets retirees and high-net-worth borrowers qualify for mortgages based on their investment portfolio rather than employment income. Fannie Mae allows 70% of qualifying liquid assets to be divided by 360 months as monthly income for DTI calculations. A retiree with $1.5M in brokerage + IRAs qualifies for ~$2,900/month in calculated income — enough for a $400K mortgage at current rates.
Acceptable Assets
Fannie Mae accepts: checking, savings, money market accounts, stocks, bonds, mutual funds, ETFs, CDs, brokerage accounts, IRAs (Traditional, Roth, SEP), 401(k), 403(b), pension lump sums. Not accepted: home equity (cannot use your house to buy a house), personal property (cars, jewelry), business interests, real estate, vested but unexercised stock options (sometimes allowed in private lender programs), inherited assets in probate.
Retirement Asset Haircuts
Retirement accounts (Traditional IRA, 401(k), 403(b)) receive a haircut if the borrower is under 59.5 — typically 40% reduction because early withdrawal would incur 10% penalty plus income tax. Roth IRA contribution balance (not earnings) avoids haircut since basis is withdrawable penalty-free at any age. Some lenders apply the haircut to all retirement assets regardless of age — ask specifically about your lender's policy.
Why Asset Depletion Exists
Without asset depletion, retirees with $5M in IRAs but no W-2 income would fail standard DTI calculations. Asset depletion recognizes that retirees can fund mortgage payments from their wealth even without active employment income. It's especially common for jumbo mortgages where high-net-worth borrowers prefer not to liquidate appreciated assets just to buy a house. Source: Fannie Mae Selling Guide B3-3.1-09.
Last updated May 2026. Sources: Fannie Mae.