What is an asset depletion mortgage?

An asset depletion mortgage — also called asset utilization or asset dissipation — qualifies a borrower by converting eligible liquid assets into a monthly income stream instead of using employment income. No job, paystubs, or tax returns are required when the assets carry the file.

How is asset depletion income calculated?

Take the eligible asset balance, apply the program haircut (typically 100% of cash, 70–80% of stocks and bonds, and 70% of retirement accounts for borrowers with penalty-free access), then divide the total by the program's amortization term — commonly 60, 84, or 120 months. The result is the qualifying monthly income.

Which assets qualify for asset depletion?

Checking and savings, money market accounts, CDs, publicly traded stocks and bonds, mutual funds, and vested retirement accounts. Business accounts, restricted stock, crypto, and any funds being used for the down payment or reserves are generally excluded or discounted.

Do you have to be retired to use asset depletion?

No. Retirees are the most common use case, but self-employed borrowers between exits, high-net-worth borrowers with low reported income, and trust beneficiaries all use asset depletion. Employment income can also be blended with depletion income on most programs.

What credit score and down payment does asset depletion require?

Most wholesale asset depletion programs start around a 680 FICO with 20–25% down, with better pricing and higher LTVs available at 720+. Reserves are typically required in addition to the assets being depleted.

How long do the assets have to be seasoned?

Two to three months of statements is the standard, and large deposits must be sourced. Assets must be liquid, in the borrower's name (or jointly), and available without a withdrawal restriction that would defeat the depletion math.

Asset Depletion Mortgage Guide for Brokers

How asset depletion mortgages work: qualifying accounts, haircuts by asset type, and the 60/84/120-month divisor math brokers need.