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Asset-Based Qualifying

You built the wealth. That should be enough to buy the house.

Asset-depletion loans qualify you on your liquid assets instead of a W-2 or tax return. If you're retired, between jobs, living off a portfolio, or just tired of a bank pretending a 7-figure brokerage account doesn't count — this is the loan built for that.

Why asset-depletion loans work

Four things an asset-depletion loan does that a standard loan can't.

Retirement account, brokerage, cash. Millions on paper, but no paystub. The conventional lender says no. The right program says: your balance sheet is the income.

0

Employment required

Retired, semi-retired, in transition — none of it disqualifies you. Assets do the qualifying.

100%

Of cash counts

Checking, savings, money market — all counted at 100% of balance for the depletion calc.

70-80%

Of investments count

Brokerage, stocks, bonds, mutual funds — counted at 70-80%. Retirement accounts count if you're 59½+.

$3M+

Loan amounts

Jumbo-friendly. Loan sizes up to $3M standard, higher case-by-case for the right file.

Who this is for

Written for the buyer whose net worth doesn't fit on a paystub.

The people this loan was built for don't have an "income problem." They have an "the form doesn't have a box for me" problem.

Retirees

Living off Social Security + a portfolio. Documented income looks small; assets tell the real story.

Pre-retirees

Wound down the business, cashed out, or took the package. Between W-2s but flush with liquid capital.

High-net-worth

Deferred comp, RSU-heavy compensation, complex tax situations where AGI understates true wealth.

Trust & inheritance

Beneficiaries drawing from a portfolio or trust that a conventional lender doesn't know how to treat.

Second-home & investment buyers

Buying a lake house, ski place, or investment property funded by savings rather than income.

Downsizers & right-sizers

Selling the family home, moving to something smaller, buying before the sale closes.

How the math works.

We take your eligible liquid assets, apply haircuts based on account type, subtract closing costs and reserves, and divide by an amortization period (typically 60, 84, or 120 months). The monthly result becomes your qualifying income.

1

Total your assets

Two months of statements from every liquid account — checking, savings, brokerage, IRA, 401k.

2

Apply haircuts

Cash 100%. Investments 70-80%. Retirement 60-70% (only if 59½+ and unrestricted).

3

Subtract closing + reserves

Remove funds needed for down payment, closing, and 6-12 months of reserves from the total.

4

Divide by term

Remaining ÷ 60, 84, or 120 months = monthly qualifying income. Longer term = larger loan.

Worked example

What the math actually looks like.

A hypothetical retired couple with $1.8M in liquid assets, buying a $650K home with 25% down.

The assumptions

Both borrowers age 65+. No W-2 income, ~$3,200/mo combined Social Security. Excellent credit. Buying a $650,000 primary. 25% down ($162,500). Reserves and closing set aside from liquid assets.

  • Checking + savings: $150,000
  • Non-retirement brokerage: $650,000
  • IRAs (both borrowers, 65+): $1,000,000
  • Total liquid: $1,800,000

The qualifying income

Cash @ 100%$150,000
Brokerage @ 75%$487,500
IRAs @ 65%$650,000
Less closing + reserves−$200,000
Depletable assets$1,087,500
÷ 84 months≈ $12,946 / mo

Illustrative only. Actual haircuts, terms, and reserves vary by program and file.

Program guidelines

The specs, in plain English.

Every scenario is different — these are the typical guardrails. When you call, I'll tell you exactly where you sit on each line.

Asset Depletion · Typical Guidelines

GuidelinePurchaseRefinance
Min. assetsTypically $500K liquid post-close · higher for jumboSame
Amortization60, 84, or 120 months (program-dependent)Same
Cash haircut100% of balance countedSame
Investment haircut70-80% of balance countedSame
Retirement haircut60-70% · borrower must be 59½+ and account unrestrictedSame
Max LTVUp to 80% (higher case-by-case)Up to 75% rate/term · up to 70% cash-out
Minimum FICO680 typical · 700+ for strongest pricing680 typical
Loan amountUp to $3M standard · higher case-by-caseUp to $3M
Property typesPrimary, 2nd home, investment · 1-4 family · condoSame
Terms30-yr fixed · 5/6 & 7/6 ARM · interest-only optionsSame
Common questions

What people ask before we start.

Am I actually draining my accounts to pay for this loan?

No. "Asset depletion" is just the math the lender uses to convert your assets into a hypothetical monthly income for qualifying. You don't liquidate anything, you don't set up automatic withdrawals, and the assets stay yours to invest as you always have. It's a documentation method — nothing more.

Do I need to be retired to use this program?

Not at all. Retirees are the most common fit, but the program works for anyone who has substantial liquid assets and either doesn't have qualifying income on paper or doesn't want to use it. Business owners, trust beneficiaries, and pre-retirees between W-2s all use it.

Does the rate cost more than a conventional loan?

Yes — asset-depletion programs price 0.5% to 1.25% higher than a comparable conventional 30-year, depending on FICO, LTV, and reserves. For a buyer with the assets to close but no way to qualify conventionally, the trade is usually worth it.

Can I combine asset depletion with other income?

Yes. Social Security, pension, part-time W-2, or rental income can all be added on top of the depleted-asset income. That "blended" file often qualifies for a larger loan than either method alone.

What about my 401(k) or IRA if I'm under 59½?

Retirement accounts under 59½ are generally excluded from the calculation on most programs — the assumption is you can't access them without a penalty. Once you cross 59½ and the account is unrestricted, we count them at the retirement haircut.

How long does it take to close?

Typically 30 to 45 days, similar to conventional. The paperwork is different — we're documenting statements and account ownership, not paystubs — but it's not slower.