No income calculation at all
Asset Depletion Loans
The lender divides your liquid assets over a set term and calls that your income. No job required, no income documented.
Asset depletion doesn't calculate your income. It manufactures one.
The lender takes your liquid assets, divides by a number of months, and treats the result as monthly income for qualifying. Nothing is withdrawn. Nothing is pledged. The money stays where it is.
The math
Say you have $1,200,000 in liquid assets after the down payment and reserves. Divided by 240 months, that's $5,000 a month of qualifying income. Divided by 360 months, it's $3,333.
That divisor is the whole game. A lender using 240 qualifies you for substantially more house than one using 360, on exactly the same assets. Most borrowers never learn there was a choice, because their bank only has one.
I shop the divisor.
Which assets count, and at what value
- Checking and savings — usually 100%
- Brokerage and non-retirement investments — commonly 70% to 90%, because the value moves
- Retirement accounts — often 70%, and sometimes excluded entirely if you're under 59½
- Business accounts — usually not, unless you own the business outright and can document access
Assets used for the down payment and required reserves come out of the calculation first. Only what's left gets divided.
Who this is built for
People who sold a business. Retirees with real savings and no W-2. Early retirees. Anyone living off investments. People between roles with substantial assets who'd be declined on a standard income test despite being the safest borrower in the building.
It also pairs well: Social Security, a pension, or rental income can be added on top of the depletion figure.
What it costs
Rates run above conventional. Down payments are typically 20% or more, sometimes 30%. Expect the lender to want assets seasoned for two or three months, and to document their source if they arrived recently.
A note for people over 62
If you're 62 or older and asset-rich, compare this against a reverse mortgage before you decide. A reverse mortgage requires no monthly payment at all, which changes the arithmetic completely. Sometimes it wins. I'll run both.
The other doors
See bank statement loans, 1099 income loans, P&L only loans, and the comparison on my self-employed page.
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Questions people ask
Which accounts count?
Checking, savings, brokerage, and usually retirement accounts. Retirement money is often discounted — commonly to 70% — if you're under the age where you can withdraw without penalty.
Do I actually have to spend the money?
No. Nothing is withdrawn. The calculation is a qualifying exercise only, and the assets stay exactly where they are.
What divisor do lenders use?
It varies. Some divide by 360 months, some by 240, some by the loan term, and some use your life expectancy. The divisor makes an enormous difference, so it's worth shopping rather than accepting the first one.
Can I combine this with other income?
Yes. Social Security, a pension, rental income and part-time work can all be added on top of the depletion figure.
Let’s look at your numbers
Fifteen minutes. Your real numbers. No pressure.
Call or text my cell, or book a time. You’ll get a written comparison with real terms and an APR on every option, and if your current deal already wins, I’ll tell you.