Asset Depletion Mortgage - Turn your assets into qualifying income for a home.

A loan that lets you qualify using the value of your assets — savings, investments, or retirement accounts — instead of traditional income documentation. Your balances are converted into a monthly income figure used for debt-to-income qualification.

Eligible asset balances are totaled, then the down payment, closing costs, required reserves and any debt payoffs are subtracted. What’s left — your net eligible assets — is divided by 60 months on our Non-QM program to produce your qualifying monthly income. Cash and brokerage accounts generally count in full; retirement accounts count at 70% if you’re under 59½.

Checking, savings, money market, CDs, brokerage accounts, publicly traded stocks, bonds, ETFs, mutual funds, and retirement accounts including IRAs and 401(k)s. Business accounts, custodial accounts, 529s and assets pledged as collateral are generally excluded.

In many cases, yes. Under age 59½ the balance is typically counted at 70% to reflect early-withdrawal cost. At 59½ and older, up to 100% may count. One catch: accounts you’re already drawing distributions from are generally not eligible for this calculation.

Not necessarily. These programs are designed specifically for borrowers with little or no traditional reportable income. No employment verification and no tax returns are required.

Requirements vary, but programs generally start around 660. Higher scores unlock higher loan-to-value limits and better pricing, with meaningful tiers at 680 and 700.

There’s no single market minimum. Programs typically apply both a flat post-closing balance floor and a test tied to your loan size, and both are measured after the down payment, costs and reserves come out. That’s why someone who “has a million” can still fall short. Run your figures in our asset depletion calculator to see whether the minimum is what’s binding you.

Asset depletion is one type of Non-QM program — a category built for borrowers who don’t fit conventional income documentation rules. Fannie Mae and Freddie Mac also have their own asset-based methods, which use much longer divisors and are far more restrictive on property type and loan purpose.

Yes — retirees are one of the most common borrower profiles for asset depletion. Asset income can often be combined with Social Security, pension or annuity income to strengthen the file.

Yes on the Non-QM side. This is one of the clearest differences from the agencies — both Fannie Mae and Freddie Mac restrict asset depletion to primary residences and second homes, so investment property isn’t a smaller number there, it isn’t available at all.

They describe the same underwriting method under different labels, and no lender uses all four consistently. “Asset dissipation” is the regulatory term — the OCC calls it Asset Dissipation Underwriting in its 2019 guidance to banks. “Asset utilization” describes the mechanic: assets converted into monthly income. “Asset qualifier” is usually a named program built around that method with no employment and no tax returns.

“Asset depletion” is the umbrella term most borrowers search. If a lender uses one of these words and you’re not sure which mechanic they mean, ask whether your assets are being turned into income for a debt-to-income calculation, or added to rental cash flow on an investment loan. Those are genuinely different loans.

As a Non-QM program, pricing generally runs above conventional and it isn’t published publicly — it moves with your credit, your equity, and the lender we place you with. Your specific rate comes from a conversation and the underwriting process, not from an estimate on a web page.

Yes. Many self-employed borrowers use asset depletion when tax-return income doesn’t reflect their actual financial strength. If you also have consistent business deposits or 1099 income, it’s worth comparing against bank statement and 1099 programs — sometimes those qualify you for more.

No. Nothing is liquidated, pledged or frozen. The lender is documenting that you could cover the mortgage from what you already hold. Your accounts stay invested and stay yours.

Generally 6 months of PITIA on loans up to $1M and 9 months above that, held in addition to the assets used in your qualifying calculation. Reserves may be waived on some purchase and rate/term transactions at 70% LTV or lower with clean mortgage history.

Usually yes, and for retirees that’s often the strongest structure. Asset income can sit alongside Social Security, pension or documented employment income. Some lenders cap how much of your total qualifying income can come from assets when it’s a supplement rather than the sole source.

Single-family homes, condos, townhomes and 2–4 unit properties, depending on the program. Co-ops, manufactured and mobile homes, log homes and mixed-use properties are typically excluded.

Yes. The required amount depends on the program and your credit profile — commonly 20% or more on a primary residence purchase. Keep in mind the down payment is deducted from your assets before the qualifying income calculation, so putting more down can reduce the income you qualify with.

Timelines vary, but most borrowers complete pre-approval shortly after submitting statements and standard application documentation. These files are manually underwritten, which means a real person reviews the asset picture rather than an automated system rejecting it.

Yes — both rate/term and cash-out refinances are available on the Non-QM side. Cash-out is worth highlighting because neither Fannie Mae nor Freddie Mac permits it under their asset depletion rules.

Yes — Andes Mortgage offers asset depletion programs across all five of our licensed states: Alabama, Georgia, Florida, Texas and South Carolina.

Typically three months of statements for each asset account you want to use, along with standard mortgage application documentation. Balances are expected to be reasonably consistent across those three months — large swings may need a brief explanation.