Asset Depletion Mortgage Qualifier

Asset depletion mortgages convert your liquid wealth into qualifying income for borrowers who have substantial assets but limited current income — retirees, early retirees, business owners between ventures, or trust beneficiaries. Lenders apply haircuts to each asset class (cash 100%, brokerage 70%, retirement 60-70%) and divide the eligible pool by the loan term to produce monthly qualifying income. No employment verification, no tax returns required.

How Asset Depletion Qualifying Works

Lenders sum your liquid assets with class-specific haircuts. Cash and savings count at 100%. Taxable brokerage typically counts at 70% (haircut for market risk). Retirement accounts count at 60% if you're under 59½ (early withdrawal penalty applies) or 70% once you're 59½ or older. From the eligible pool, the lender subtracts the down payment and closing costs. The remaining net is then divided by the loan term in months (360 for a 30-year loan) to produce your qualifying monthly income. That income must support the loan payment within standard DTI ratios (typically 43%).

When Asset Depletion Beats Other Options

Best fit: (1) Retirees with $1M+ in assets and modest fixed pension/social security income — asset depletion produces a much larger qualifying income than pension alone. (2) Early retirees / FIRE who have substantial portfolios but no current W-2. (3) Business owners between ventures who have liquidated equity but show no current income. (4) Trust beneficiaries with assets but irregular distributions. Asset depletion loans are non-QM products with rates 0.5-1.5% above conventional. Down payments typically 20-30%. Limited number of lenders offer them — shop with non-QM specialists or private banks for best pricing.

Last updated May 2026. Sources: Fannie Mae Underwriting.