You have the wealth to buy the home — you just don't show the monthly income. Asset depletion loans convert your savings, investments, and retirement accounts into qualifying income so your balance sheet does the talking.
An asset depletion loan lets you qualify for a mortgage using your accumulated wealth instead of your monthly paycheck. The lender takes your eligible liquid assets — savings, brokerage accounts, retirement funds — subtracts your down payment and closing costs, then divides the remaining total over the loan term to create a "synthetic" monthly income. It is ideal for retirees, business owners, high-net-worth borrowers, and anyone with money but little reportable income.
Of eligible assets can be converted into qualifying income
Employment or paystub income is not required
LTV available on qualifying asset-depletion programs
Asset depletion (sometimes called asset dissipation or asset-based lending) is a non-QM loan program that underwrites you on assets rather than employment income. Instead of asking "how much do you earn each month?", the lender asks "how much wealth do you have to draw from?"
This is a powerful solution for borrowers whose financial lives don't fit the traditional W-2 mold — retirees living on portfolios, business owners who minimize taxable income, investors between liquidity events, or anyone who has accumulated significant savings but doesn't draw a steady salary.
Requires paystubs, W-2s, or tax returns.
Requires statements for savings & investments.
Most programs use liquid and near-liquid assets. Each type carries a different "haircut" — a percentage of value the lender is willing to count.
Typically counted at 100% of balance.
Usually counted at 70–100% of market value.
Often counted at 60–70% to account for taxes and penalties.
Counted at a discounted percentage of current value.
Generally treated like cash, with a high count value.
Case-by-case. Often excluded unless income-producing.
Important: Only assets that remain after closing can be used to qualify. Your down payment and closing costs are subtracted first, and many lenders also require you to retain reserves. Haircut percentages vary widely by lender — this is exactly where an experienced advisor finds you the best fit.
Apply NowThe lender turns your leftover assets into a monthly income figure. Here is the step-by-step, with a real example.
Add up all countable accounts using each asset's haircut percentage.
Remove your down payment, closing costs, and required reserves.
The remainder is spread across the loan term in months.
That monthly figure is used to calculate your debt-to-income ratio.
Illustrative only. Actual figures vary based on lender haircuts, program guidelines, and your full file. Some programs divide over 20 years for a higher monthly figure.
If your net worth is strong but your documented income is thin, this program was built for you.
Living on portfolio withdrawals and Social Security but carrying substantial savings. Asset depletion recognizes the wealth you spent a lifetime building.
If write-offs reduce your taxable income but you hold meaningful reserves, your assets can qualify you where tax returns fall short.
When your balance sheet is the story, asset depletion lets you borrow against wealth — often with larger loan amounts and competitive terms.
Sold a business, received an inheritance, or cashed out equity? Convert that one-time capital into ongoing qualifying income for your mortgage.
Share your asset picture and we'll model your synthetic income and purchasing power — no obligation.
Asset depletion is a non-QM program, so guidelines are set by each lender rather than by Fannie Mae or Freddie Mac. That flexibility works in your favor — but it also means the details matter. Here is what most programs look for.
Often 620–700 minimum, with better pricing at higher scores.
Commonly up to 80% on primary residences, sometimes higher with strong assets.
Two months of asset statements, no paystubs or tax returns required.
Lenders often require remaining reserves after closing, typically 6–12 months.
Primary, second homes, and investment properties. Some programs allow LLC vesting.
Your portfolio becomes your income statement. We'll show you exactly which assets count and at what value.
What borrowers ask us most about asset depletion loans.
Chief Executive Officer, Equitable Lending
Saman Khanian leads Equitable Lending and specializes in financing solutions for borrowers whose financial profiles fall outside conventional guidelines. He writes about non-QM lending, asset-based and bank statement programs, and the strategies high-net-worth and self-employed clients use to access mortgage capital without sacrificing their tax or investment advantages.
Disclosure: This article is for educational purposes and does not constitute a commitment to lend. Equitable Lending is a DBA of Equitable Mortgage & Realty Inc., NMLS 1124483. All loans subject to credit approval, underwriting guidelines, and program availability. Rates, terms, and programs are subject to change without notice. Equal Housing Opportunity. For licensing information, visit nmlsconsumeraccess.org.
Talk to an Equitable Lending specialist who structures asset depletion loans every day. Find out what your savings and investments can qualify you for.
