Qualify on liquid assets — not a paycheck. Built for Indiana retirees, high-net-worth buyers, and investors whose balance sheet is stronger than their W-2 income.
An asset depletion loan is a Non-QM mortgage that turns your liquid net worth into qualifying income. Instead of W-2s or tax returns, lenders take eligible assets, apply any required haircut, and divide by a term factor — often the loan term in months — to create a monthly income figure for DTI.
Retirees living on investments, buyers between careers, and high-net-worth borrowers with low reported income are common fits. You do not have to liquidate everything at closing — underwriting uses a calculated depletion schedule so your portfolio can support the payment on paper.
Guidelines vary by investor, credit, and loan amount. This overview is educational — every file is reviewed against current product rules.
How income is figured
Eligible liquid assets
×
Haircut / usable %
÷
Loan term (months)
Result = monthly qualifying income used for DTI. Retirement accounts and brokerage balances often count at a reduced percentage; cash and checking usually count higher.
From listing your accounts to closing — without an employment income calc.
Cash, brokerage, retirement, and other liquid accounts that the investor will count.
Many programs use a percentage of retirement or investment balances as usable assets.
Usable assets ÷ months remaining on the loan (or a set factor) = monthly income.
Credit, equity, reserves, and appraisal still apply — employment often does not.
Borrowers whose liquid assets tell a stronger story than a traditional income document.
Not the right fit if…
Exploring other Non-QM options?
Underwriting converts eligible liquid assets into a monthly income figure. That closes the gap for retirees and asset-rich buyers whose tax returns or pay stubs do not reflect their ability to carry a mortgage.
Typical formula: assets ÷ loan-term months
Employment verification is often skipped when assets alone support the payment and reserves.
IRAs, 401(k)s, and similar accounts may qualify at a program-defined percentage.
Primary, second home, or investment — program rules vary by use and LTV.
Ryan & Steve map your asset mix before you apply so the depletion math is clear.
Common Non-QM asset depletion ranges — your scenario may differ. We confirm exact numbers before you make an offer.
Eligible assets
Cash, brokerage, retirement
Checking, savings, stocks, mutual funds, IRAs, 401(k)s — haircuts vary by type
Credit profile
Often mid-600s to 700+
Stronger scores unlock better pricing and higher LTVs
Down payment
Often 20–30%+
Higher equity is common on asset-based Non-QM files
Reserves
Often 6–12 months PITIA
May rise with loan size, occupancy, or credit tier
Property types
1–4 unit residential
SFR, condo (warrantable), and small multifamily
Loan purpose
Purchase or refinance
Rate/term and cash-out options on many programs
All loans subject to credit and property approval. Program guidelines vary by investor and change without notice.
A complete asset package speeds underwriting. Incomplete statements, unexplained large transfers, or assets already pledged for down payment are the usual delays.
Start Your FileRecent statements for every account used in the depletion calc — cash, brokerage, and retirement.
Confirm you (and co-borrowers, if any) own the assets being counted.
Government ID, signed 1003 application, and authorization for credit.
Show which funds cover equity and post-closing reserves without double-counting depleted assets.
Fully executed agreement once you are under contract — or refi docs for existing property.
Mortgage Knowledge Center
Straight answers on asset depletion qualifying, income calculation, eligible accounts, Social Security and employment stacking, credit, DTI, property types, second homes, investment use, refinance, documents, and fit — written for Indiana buyers.
Talk with Ryan and Steve about an asset depletion pre-approval — we review your liquid accounts and haircuts before you apply so the numbers make sense.