Asset Depletion Mortgages for High-Net-Worth Borrowers

Unlike traditional mortgages that rely on W-2 income, an asset depletion loan (also called an asset depletion mortgage or asset dissipation loan) lets you qualify using your liquid assets. Instead of tax returns, pay stubs, or business income, lenders calculate your “qualifying income” based on your investment portfolio, savings, and retirement accounts.

That means your net worth works for you—even if your monthly paycheck doesn’t tell the whole story. Asset depletion financing is especially popular with high-net-worth borrowers, retirees, business owners, and investors who have substantial assets but less verifiable income.

An Asset Depletion Loan Example: A borrower with $5M in liquid assets decides to use $1M for a down payment. The remaining $4M is divided across a qualifying term, generating more than $66,000 in monthly qualifying income. That income can support a mortgage well above $2.5M, all without showing W-2s or tax returns.

Yes! Many asset depletion mortgage lenders allow you to blend asset depletion income with other income sources such as Social Security, pensions, rental income, or even part-time W-2 wages. This increases your total qualifying income and strengthens your debt-to-income ratio—especially if you’re pursuing a jumbo asset-backed loan under Fannie Mae or Freddie Mac guidelines.

While requirements vary, most asset depletion loan programs require at least $1 million in eligible assets (cash, brokerage accounts, retirement funds, etc.) to qualify. Some lenders allow smaller balances for conforming loan amounts, while jumbo asset depletion mortgages typically require higher asset levels. A mortgage broker can guide you based on your loan size, property type, and investor requirements.

Yes — many asset-based lenders accept trust-held assets, retirement accounts, and even digital assets if you can verify access and liquidity. As long as your trust documents allow funds to be used for housing purposes, they can be included in your asset depletion income calculation. This flexibility makes asset depletion mortgages popular with retirees, trust beneficiaries, and investors.

Absolutely. With an asset depletion loan, lenders use your eligible accounts to calculate monthly qualifying income—often by dividing liquid assets across 60 or 120 months, depending on whether the loan follows Fannie Mae or Freddie Mac asset depletion guidelines. This makes asset-based mortgages ideal for borrowers who are asset-rich but have limited traditional income streams.

Typically, lenders will require using a down payment of at least 15% when purchasing a home using a asset depletion loan, although 20% will give you access to much better pricing.

Asset depletions loans require a 700+ credit score, since these are non-QM loans designed for high-net-worth borrowers using alternative income documentation. However, if you want the best rate you should aim for a 780+ credit score.

Asset-based lending qualifies borrowers using their portfolios instead of employment income. Lenders calculate eligibility from stocks, bonds, retirement accounts, and cash equivalents, applying valuation percentages to assess liquidity. Because the process focuses on financial resources rather than salaries, asset-based lending provides financing options for high-net-worth individuals, retirees, and business owners with complex income.

DSCR loan terms outline how property income supports debt payments through the Debt Service Coverage Ratio. Lenders evaluate rental income, loan-to-value, and credit scores to determine rates and conditions. Stronger ratios typically lead to better pricing. These DSCR loan terms help real estate investors secure financing based on property performance rather than personal income.

The asset depletion method treats eligible holdings like savings, investments, and retirement accounts as income streams. Lenders divide total assets over a set loan term to calculate monthly qualifying income. This approach makes the asset depletion method ideal for wealthy borrowers, retirees, or self-employed individuals with substantial portfolios but limited documented earnings.