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Asset depletion loans.
Qualify on what you have rather than what you earn. Built for retirees and for people whose wealth is real but whose paycheck is not.
Assets instead of income
The problem it solves
Conventional underwriting is built around monthly income. A retiree with a substantial portfolio and no paycheck can look weak on paper next to someone with far less money and a salary. That is a flaw in the measurement, not in the borrower.
Asset depletion fixes the measurement. The lender takes your qualifying liquid assets and converts them into a monthly figure that underwriting can use. Nothing is liquidated, nothing is pledged, and nothing has to be withdrawn. It is arithmetic on a statement.
What counts as an asset
Typically checking and savings, brokerage and investment accounts, and retirement accounts. Programs commonly discount investment and retirement balances rather than counting them at face value, to allow for market movement and for the age at which the funds are accessible.
What generally does not count: the equity in the home you are financing, business accounts you do not fully own, assets you cannot document, and anything borrowed. Expect two to three months of statements for every account you want considered.
Who uses it
- Retirees with portfolios, buying or downsizing.
- People who sold a business and have not replaced the income yet.
- Borrowers whose income is lumpy — carried interest, distributions, commissions in an off year.
- Anyone whose tax return understates their real financial position.
Questions people ask
Do I have to sell my investments?
No. This is a qualification method, not a requirement to spend down. Your accounts stay invested and stay yours.
Can I combine it with actual income?
On most programs yes. Social Security, a pension or part-time work can usually be counted alongside the asset calculation.
Is this the same as a bank statement loan?
No. Bank statement loans reconstruct self-employed income from deposits — there is still income, it is just documented differently. Asset depletion works when there is no income to document at all.
Can I use it on a second home or an investment property?
On many programs, yes. Primary residences have the widest availability.
Program availability varies by state, by occupancy and by account type. A licensed loan officer will confirm what is available for your situation.
Find out what you qualify for.
A licensed loan officer reviews what you send and tells you where you stand, in writing. No cost, and no obligation to go further.