Asset depletion mortgages
Turn eligible investment and retirement assets into qualifying income without selling the portfolio first.
Short answer
An asset-depletion or asset-utilization mortgage converts eligible investment, retirement, or other verified assets into a monthly qualifying-income figure. It can help retirees and high-net-worth borrowers whose taxable income understates their financial strength. The calculation, eligible accounts, required reserves, age rules, and loan terms vary by lender and program.
Who this is for
- Retirees with substantial investments but limited employment income
- High-net-worth borrowers whose taxable income does not reflect available resources
- Borrowers comparing portfolio and Non-QM income methods
- Homebuyers who want to document strength without liquidating every asset
What it takes to qualify
- Verified eligible assets with acceptable ownership and sourcing.
- Enough assets after down payment, closing costs, and required reserves to support the program calculation.
- An acceptable credit, property, occupancy, and loan-purpose profile under the selected lender's rules.
How it works with me
A process you can see the whole way through
Inventory the accounts
We separate eligible liquid assets from restricted, pledged, business, or otherwise ineligible funds.
Protect cash needs
Down payment, closing costs, reserves, and post-closing liquidity come out before income is calculated.
Compare calculations
Agency, portfolio, and Non-QM methods are tested against the same verified statements.
Document the cleanest path
The selected lender's current ownership, seasoning, age, and account rules control the file.
What to know before you decide
The divisor changes the answer
The lender does not simply count an account balance as income. Programs subtract ineligible funds, transaction costs, and required reserves, may discount some asset types, then divide the remaining amount over a defined term. Two programs can produce very different qualifying income from the same portfolio.
Retirement income and asset depletion are different
Documented pension, Social Security, retirement distributions, and standard agency asset-based methods should be compared before choosing a Non-QM option. The best structure is the one that supports the loan with the lowest total risk and cost, not the most unusual documentation.
Ways assets can support qualification
| Method | How it works | Main issue to verify |
|---|---|---|
| Ongoing distributions | Uses documented recurring retirement or investment income | Continuance and history |
| Agency asset method | Uses an eligible formula under standard guidelines | Transaction and occupancy limits |
| Non-QM asset depletion | Converts eligible net assets to calculated monthly income | Lender-specific divisor and account rules |
| Standard income plus reserves | Uses employment or other income and treats assets as strength | Income still must qualify |
Program calculations and availability vary. A document-level comparison is required.
Rates and terms subject to change without notice. Not a commitment to lend. Not available in all states. This is not tax, legal, or financial advice. Consult a qualified professional for your specific situation.
Run your own numbers first
Start with the target payment, then compare how much verified income each asset method actually produces.
Open the calculatorsAsset depletion mortgages: common questions
Do I have to sell my investments?
Not necessarily. Programs often verify eligible assets without requiring full liquidation, but funds needed for closing and reserves must be documented.
Can retirement accounts count?
Often, subject to ownership, access, age, tax, penalty, and program-specific discount rules.
Is this the same as a stated-income loan?
No. Assets and account ownership are verified, and the lender applies a defined calculation.
Can I combine asset depletion with other income?
Some programs allow combinations and others do not. The selected guideline controls.
Fine-tune your Asset depletion mortgages plan
Send the property, purpose, timing, and numbers you already know. The email opens prefilled for this Asset depletion mortgages page so the review starts in the right lane.
MortgageOne Inc. is licensed for consumer mortgage lending in 41 states and Washington, DC. Chris Lamm is individually licensed in 19 states.