From eligible accounts to monthly DTI income — the step-by-step math behind asset depletion Non-QM qualifying.
Every asset depletion program follows the same core logic — only the haircuts, reserve rules, and eligible account types change by investor.
List liquid accounts — cash, checking, brokerage, and retirement — with recent statements showing current balances. Illiquid or pledged assets are excluded.
Each account type gets a usable percentage. Cash may count at 100%; brokerage at 70–100%; IRA and 401(k) often at 60–70% to reflect market and withdrawal risk.
Remove down payment, closing costs, and required post-closing reserves from the usable total. What remains is the depletion base.
Divide the depletion base by the loan term in months (e.g., 360 for 30 years). The result is monthly qualifying income for DTI — you typically do not liquidate at closing.
An Indiana retiree holds $800,000 in eligible accounts: $200,000 cash, $400,000 brokerage, and $200,000 IRA. After program haircuts (100% cash, 80% brokerage, 70% IRA), usable assets total $780,000.
Subtract $160,000 down payment, $15,000 closing costs, and $45,000 reserves (6 months PITIA). Depletion base: $560,000. On a 30-year term (360 months), monthly depletion income ≈ $1,556 — plus any Social Security or pension already documented.
This is illustrative only. Ryan & Steve run your actual balances against current investor haircuts and reserve rules before you apply.
Guidelines vary by investor, credit, and loan amount. This example is educational — not a guarantee of approval or income amount.
Monthly income =
(Eligible assets × haircuts − down payment − reserves − closing costs) ÷ loan term in months
Small shifts in term, equity, or account mix can move qualifying income significantly.
A 15-year amortization divides the same depletion base by 180 months instead of 360 — roughly doubling monthly income vs. a 30-year file on identical assets.
Every dollar toward down payment is removed from the depletion base. Larger equity helps LTV but reduces the pool available for income calculation.
Post-closing reserves sit outside the depletion base. Programs requiring 12 months PITIA in liquid accounts leave less for income — plan reserves early.
A portfolio heavy in cash qualifies differently than one weighted toward retirement accounts. Haircut percentages vary by investor and asset type.
Related asset depletion guides and Non-QM resources from Ryan & Steve.
Overview of asset-based Non-QM and who it helps.
Eligible account types, haircuts, and common exclusions.
Portfolio size vs. loan amount, term, and reserve requirements.
Full program hub and application steps.
2MG Daily
Recent articles on asset depletion financing, Non-QM options, and retiree qualifying.
Sep 10, 2026 • 2MG Daily
Read article →
Sep 9, 2026 • 2MG Daily
Read article →
Lenders start with eligible liquid accounts, apply program haircuts to each asset type, subtract down payment and required reserves, then divide the remaining usable balance by the loan term in months. That monthly figure is added to any other qualifying income for DTI.
A haircut is the percentage of an account balance a lender counts as usable — often 100% for cash, 70–100% for brokerage, and 60–70% for retirement accounts. Haircuts reflect liquidity risk and market volatility.
No — asset depletion is an income calculation method. You typically keep assets invested and documented with recent statements. Some programs require proof accounts remain accessible after closing.
Yes — the same portfolio produces higher monthly income on a shorter term because the usable balance is divided by fewer months. A 15-year amortization yields more depletion income than a 30-year on identical assets.
Ryan & Steve will run your portfolio against current investor haircuts and reserve rules before you apply.