Convert wealth to qualifying income
No employment income required. Your liquid net worth is converted directly into a qualifying monthly figure for DTI math — the only way to get a mortgage if you have assets but no paycheck.
Asset depletion mortgages for Texas buyers.
When your wealth is in assets but not in W-2 income, asset depletion converts your liquid net worth into qualifying income. For high-net-worth Texas buyers — retirees, business sale proceeds, equity comp.
- Liquid assets convert to income
- 60–84 month depletion calculation
- FICO 700+ typical
A mortgage that turns liquid net worth into qualifying income.
An asset depletion mortgage is a Non-QM product where your liquid assets (savings, investments, retirement) are mathematically converted to qualifying "income" via a depletion calculation — typically: (Total liquid assets eligible) divided by (60 to 84 months) equals monthly income equivalent. Designed for borrowers with significant assets but low or no W-2 income. The product is sometimes called "asset utilization" and is a common solution for retirees, post-business-sale founders, and executives with most of their net worth in equity rather than salary.
How an asset depletion loan goes from inquiry to keys.
- 01
Document all qualifying liquid assets
You provide statements for savings, brokerage, and retirement accounts you intend to use. Lenders apply discount factors to each asset class — cash and money-market typically count at 100%, brokerage at 70–80%, retirement at 60–70% if the borrower is under 59½.
- 02
Apply the lender's depletion formula
The lender takes the eligible (post-discount) liquid asset total and divides by the depletion window — typically 60, 72, or 84 months. The result is your monthly qualifying income equivalent.
- 03
Use derived monthly income for DTI
That depletion-derived income figure goes into the standard DTI calculation. The asset depletion file then underwrites a lot like any other Non-QM file from there: credit, reserves, property, and title.
- 04
Standard credit + property underwriting
Credit pull (700+ FICO typical), reserve verification (often 6–12 months of PITI on top of the depleting assets), and property appraisal proceed in parallel.
- 05
Clear-to-close and funding
Closing disclosure goes out at least three business days before close per TRID. You sign at title, funds wire, and you get keys. Asset depletion loans close on the same TRID timeline as conventional — typically 30–35 days from contract.
Built for Texas buyers whose wealth is in assets, not paychecks.
A retired oilman in Austin with $3M in brokerage but $0 in W-2 income gets declined for a conventional mortgage on the income line — even though they could write the check for the house in cash. Same outcome for a recent founder who just sold their business and rolled equity, or an executive whose compensation is mostly RSUs vesting over four years. Asset depletion is the tool built for these files. We work them weekly and know which Non-QM lenders are sharpest on the depletion math.
Asset depletion is the right tool when:
- You are a retiree living off investments rather than employment income
- You are a business owner after a recent sale (equity rolled over to liquid assets)
- You are an executive with substantial equity comp but low cash salary
- You are an inheritance recipient buying a home
- You are a trust-fund beneficiary with documented liquid distributions
Why asset depletion wins for asset-rich Texas buyers.
No employment income required
You do not need a job, a business, or a tax return showing earned income. Many asset depletion borrowers are fully retired or between liquidity events.
Liquid assets count — real estate does not
Asset depletion uses liquid wealth: cash, brokerage, retirement. Real estate equity is not part of the depletion calculation, since it is not readily liquidable to make payments.
60–84 month depletion windows
Different lenders use different depletion periods. A 60-month window produces the highest qualifying income; an 84-month window is more conservative. We model both before recommending a structure.
Up to 80% LTV
Strong-credit asset depletion files run to 80% LTV on a primary residence — meaning 20% down. Higher reserves and cleaner asset profiles can sometimes push higher.
Owner-occupied or second home
Asset depletion works for a primary residence and a second home in Texas. Investment-property variants exist but pencil differently — DSCR is usually the better tool there.
60–84
Months in the depletion calculation
Asset depletion questions, answered.
What counts as a "liquid asset" for asset depletion?
Cash and money-market accounts (typically 100% of value), brokerage accounts holding stocks, bonds, and mutual funds (typically 70–80%), and retirement accounts like IRAs and 401(k)s (typically 60–70% if you are under 59½, higher if you are over). Real estate equity, business equity, and illiquid alternative investments are generally not counted in the depletion math.
How is the depletion calculated?
After applying the lender-specific discount factor to each asset class, the total eligible liquid asset figure is divided by the depletion window (typically 60, 72, or 84 months). The result is your monthly qualifying income equivalent. Example: $2.4M of eligible liquid assets divided by 60 months equals $40,000 per month of qualifying income.
Can I combine asset depletion with W-2 income?
Yes. Many asset depletion lenders allow you to add depletion-derived income on top of W-2, 1099, or self-employment income. This is useful for executives with low cash salary plus large equity holdings, or for retirees with a small pension plus a substantial portfolio.
What is the typical FICO requirement?
Most asset depletion programs want 700+ FICO, with the best pricing at 740+. Some lenders go to 680 with strong compensating factors (large reserves, low LTV, very high asset coverage). Credit still matters — asset depletion is not a substitute for credit performance.
Do retirement accounts count?
Yes, with discount factors. Most lenders count retirement accounts at 60–70% of stated value if you are under 59½ (to account for early-withdrawal penalties and taxes), and at 70–80% if you are over 59½. Required minimum distributions (RMDs) for borrowers 73+ can sometimes be treated as separate documented income.
Can I use asset depletion for an investment property?
Some lenders do offer asset depletion on investment properties, but for most investor scenarios DSCR is the better tool — it qualifies on the property's rental cash flow and does not consume your asset base in the underwriting math. We will tell you straight which one fits your situation.
Asset-rich, paycheck-light? Asset depletion can qualify you.
Asset depletion requirements at a glance.
- Substantial liquid assets ($1M+ typical)
- 700+ FICO (best pricing at 740+)
- 20%+ down on a primary residence
- Eligible asset types: savings, investment accounts, retirement (with discount factors)
- Owner-occupied or second home
- Texas property
- Reserves of 6–12 months PITI on top of the depleting assets
- DTI of 43% or lower on the derived income figure
Asset Depletion vs Conventional vs Jumbo vs Bank Statement at a glance.
| Income source | Min FICO | Best for | Down % | |
|---|---|---|---|---|
| Asset Depletion | Liquid assets ÷ 60–84 months | 700 | Retirees and high-net-worth buyers without W-2 income | 20%+ |
| Conventional | W-2 / tax-return income | 620 | Strong-credit buyers with stable employment | 3–20% |
| Jumbo | Full-doc W-2 / tax returns | 700 | Move-up buyers above the conforming cap | 10–20% |
| Bank Statement | Bank deposits (12–24 mo) | 660 | Self-employed with strong cash flow | 10–25% |
Ready to move on a Asset Depletion Loan?
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Other ways we close
Jumbo Loans
For higher-priced homes above the conforming cap. Asset depletion is often the qualifying mechanic on jumbo files for high-net-worth buyers.
Learn moreConventional Loans
When you do have qualifying employment income, conventional usually beats Non-QM on rate and reserves.
Learn moreBank Statement Loans
For self-employed buyers with deposit-rich accounts but tax returns that understate cash flow.
Learn more