No — asset depletion converts your balances into qualifying income on paper. You do not have to cash out your portfolio just to get approved.
The word “depletion” sounds like you are spending the account down. In Non-QM underwriting it means something narrower: lenders assume a schedule of how long your usable liquid assets could support a monthly payment, then treat that figure as income for DTI.
Your brokerage and retirement accounts typically stay invested. The lender documents balances with statements, applies haircuts, subtracts down payment and reserves, and divides by the loan term. Approval does not require wiring the entire portfolio to escrow.
Ryan & Steve walk Indiana buyers through exactly which dollars must move for closing — and which dollars only need to appear on statements for the income calc.
Guidelines vary by investor, credit, and loan amount. This overview is educational — your file is reviewed against current product rules.
Optional sales are strategy decisions — not program mandates.
Selling securities can lower LTV and improve pricing. Weigh capital gains against monthly payment savings before you sell.
Some buyers prefer cash reserves in checking after closing rather than leaving everything invested — personal preference, not a forced cash-out.
Converting a hard-to-document account into cash can speed underwriting when statements are messy or ownership is unclear.
Year-end gain harvesting or Roth conversions should be coordinated with your tax advisor — not rushed solely for the mortgage.
The dollars you spend on down payment and closing cannot also create depletion income. Underwriters subtract those amounts from the eligible pool before dividing by the loan term.
We separate “cash to close,” “reserves,” and “income assets” up front so your Indiana file stays consistent from pre-approval through underwriting.
Bottom line
Related asset depletion guides and Non-QM resources from Ryan & Steve.
Haircuts, divide-by-term math, and monthly DTI income explained.
How 401(k) and IRA balances count without cashing out.
Qualify on liquid assets when there is no paycheck.
Full program hub and application steps.
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No — asset depletion is an underwriting calculation, not a requirement to liquidate your portfolio at closing. Lenders document eligible balances, apply haircuts, and convert usable assets into monthly qualifying income while you typically keep investments in place.
No. Your accounts remain yours. Underwriters review statements to verify balances and ownership; they do not take custody of the funds as part of the depletion method.
You still need liquid funds for down payment, closing costs, and post-closing reserves. Those amounts leave the depletion pool — but the rest of the portfolio used only for the income calc usually stays invested.
Yes — selling for a larger down payment or reserves is a personal choice, not a program mandate. We help you weigh tax impact versus LTV and pricing before you liquidate.
Ryan & Steve will show which funds must move for closing and which balances only need to appear on statements.