Loan Programs › Asset-Depletion Loans
Asset-Depletion Loans
Florida Luxury Lending — Loan Program Guide
What Is an Asset-Depletion Loan?
An asset-depletion loan (also called an asset-based or asset-qualifier loan) allows a borrower to qualify for a mortgage using their liquid assets — investment accounts, savings, retirement funds — instead of traditional employment income. The lender calculates a hypothetical monthly "income" by dividing the borrower's qualifying assets over a set period, then uses that figure to determine loan eligibility.
This program is particularly well-suited to retirees, high-net-worth individuals, and anyone who is asset-rich but doesn't have a conventional paycheck to show a lender.
How Asset-Depletion Loans Work
The calculation. Lenders typically total a borrower's eligible liquid and semi-liquid assets (bank accounts, brokerage accounts, retirement accounts — often at a reduced value for retirement funds to account for taxes/early withdrawal), then divide that sum by a set number of months (commonly 240 or 360) to arrive at a monthly qualifying income figure.
Which assets count. Cash, stocks, bonds, mutual funds, and retirement accounts are commonly eligible. Real estate equity and business ownership stakes are typically excluded, since they aren't liquid.
No employment or income requirement. Because qualification is asset-based, these programs generally don't require W-2s, tax returns, or proof of employment — making them a fit for retirees or those who've recently sold a business.
Down payment and credit. Asset-depletion loans still typically require a meaningful down payment and solid credit, since the program addresses the income-documentation gap, not overall lender risk tolerance.
Who Typically Uses Asset-Depletion Loans
- Retirees living off investment and retirement income rather than a paycheck
- Business owners who've recently sold a company and have significant liquid proceeds
- High-net-worth individuals whose wealth is concentrated in investments rather than earned income
- Borrowers between jobs or in an income transition who still have substantial assets
What to Expect in the Process
Because the qualifying calculation varies by lender — different asset "haircuts," different divisor periods — it's worth comparing how more than one lender structures the math, since it can meaningfully change the loan amount a borrower qualifies for. A lender experienced with high-net-worth clients will typically walk through this calculation clearly upfront.
Frequently Asked Questions
How is qualifying income calculated on an asset-depletion loan?
Lenders total eligible liquid assets, then divide that sum by a set number of months (often 240 or 360) to arrive at a monthly qualifying income figure.
Which assets typically count toward qualification?
Cash, stocks, bonds, mutual funds, and retirement accounts are commonly eligible; real estate equity and business ownership stakes are typically excluded.
Is this program only for retirees?
No. It's commonly used by retirees, but also by business owners who've sold a company or high-net-worth individuals whose wealth is concentrated in investments rather than a paycheck.
Rates, terms, and qualification requirements vary by lender and are subject to change. This page is for general informational purposes only and does not constitute a loan offer or financial advice. Consult a licensed mortgage professional to discuss your specific situation.
