Asset Depletion Mortgage Calculator

Understanding Your Asset Depletion Qualification

Asset depletion loans allow borrowers to qualify using eligible investment, retirement, insurance, cryptocurrency, and liquid assets instead of relying entirely on employment income or tax returns.

The calculator estimates whether your assets may support the requested mortgage based on your:

• Purchase price or estimated home value
• Down payment or remaining equity after a refinance
• Checking, savings, money market accounts, and CDs
• Marketable securities
• Retirement accounts
• Cash value of life insurance
• Eligible Bitcoin and Ethereum holdings
• Cash-out proceeds, when applicable
• Optional monthly income
• Outstanding debt balances
• Monthly debt obligations

The calculator primarily evaluates your eligible assets, while also allowing you to include recurring income when it may improve qualification. If monthly income is entered, the calculator automatically compares the available asset depletion methods and uses the calculation that produces the higher estimated loan amount.

This can be especially useful for retirees receiving Social Security or pension income, executives with substantial W-2 earnings and investment assets, or other borrowers whose financial strength comes from a combination of assets and recurring income.

The calculator uses a non-QM asset depletion methodology. Non-QM mortgage rates are generally slightly higher than comparable conventional rates, but the asset calculation can provide substantially more buying power. Depending on the borrower’s financial profile, eligible assets, and loan program, a non-QM calculation may support a loan amount up to six times greater than conventional asset depletion guidelines.

Calculator results are estimates. Final qualification will depend on asset eligibility, account ownership, income documentation when applicable, required reserves, credit, property details, occupancy, loan amount, interest rate, and lender guidelines.

How to Use the Asset Depletion Mortgage Calculator

Enter the property value, down payment, eligible assets, and debts that will remain after closing. If you have recurring income you want considered, you can also include it.

The calculator will evaluate the information entered and estimate the maximum loan amount and purchase price your financial profile may support.

Purchase Price or Estimated Home Value

Enter the purchase price for a home purchase or the estimated property value for a refinance.

For a purchase, the calculator uses this amount with the down payment to determine the requested loan amount.

Down Payment or Remaining Equity

Enter the amount or percentage you expect to contribute toward the purchase.

The calculator requires a down payment of at least 20% of the purchase price. Because those funds will be used at closing, the down payment is deducted from the eligible assets available to support the mortgage.

For example, a borrower purchasing a $1.5 million home with a $300,000 down payment would request a $1.2 million loan.

Eligible Assets

Enter the current value of each asset you expect to use for qualification.

The calculator allows you to include:

• Checking, savings, money market accounts, and CDs
• Marketable securities
• Retirement accounts
• Cash value of life insurance or eligible annuities
• Bitcoin and Ethereum holdings
• Cash-out proceeds from the subject property, when applicable

Enter only assets owned by the borrower and expected to remain eligible under the loan program. Lenders may apply different percentages to certain asset types based on liquidity, market risk, accessibility, ownership, and withdrawal restrictions.

Checking, Savings, Money Market Accounts and CDs

Enter funds held in checking accounts, savings accounts, money market accounts, certificates of deposit, and similar liquid accounts.

Do not include borrowed funds, temporary deposits, or money that cannot be documented.

Marketable Securities

Enter the current value of publicly traded investments such as stocks, bonds, mutual funds, exchange-traded funds, and Treasury securities.

The final qualifying value may be reduced to account for market fluctuations or other lender requirements.

Retirement Accounts

Enter the current vested balance of eligible 401(k), IRA, 403(b), pension, and similar retirement accounts.

The amount accepted by the lender may depend on the borrower’s age, access to the funds, withdrawal restrictions, taxes, penalties, and program guidelines.

Cash Value of Life Insurance

Enter the available cash value of eligible life insurance policies or annuities.

Use the accessible cash value rather than the policy’s death benefit or total face value.

Bitcoin and Ethereum Holdings

Enter the current value of eligible Bitcoin and Ethereum holdings.

Cryptocurrency guidelines vary by lender. The assets generally must be documented through an acceptable account or exchange, and the lender may use a reduced percentage of the current value.

Cash-Out Proceeds

For a cash-out refinance on the subject property, enter the amount of proceeds remaining after the existing mortgage and any other liens being paid off at closing are repaid.

Any cash-out proceeds above the loan payoff amounts may count as eligible assets for the asset depletion calculation, subject to the applicable loan program and reserve requirements.

Monthly Income

Monthly income is optional, and may not even increase your maximum loan amount. However. if you have recurring income you want considered, select Yes and enter the gross monthly amount before taxes.

Eligible income may include:

• W-2 wages
• Social Security
• Pension income
• Retirement distributions
• Rental income
• Other recurring income accepted under the loan program

When income is included, the calculator can evaluate an additional asset depletion method that combines adjusted eligible assets with recurring income.

Under that calculation, eligible assets are first discounted based on applicable lender guidelines and then divided by 60 months to create estimated monthly income from the assets. That amount is added to the monthly income entered, and the calculator applies a 45% debt-to-income ratio after accounting for applicable monthly obligations.

The calculator automatically compares this result with the asset-only calculation and uses whichever approach produces the higher estimated loan amount.

If you are self-employed and do not know what monthly income a lender may use, our bank statement calculator can estimate qualifying income from eligible business deposits and expenses.

Existing Debt

Enter debt obligations that will remain after closing.

Total Outstanding Debt Balances

Enter the outstanding balances of debts that may reduce the assets available for qualification.

This may include:

• Other mortgages
• Credit card balances
• Installment loans
• Personal loans
• Loans secured by investment or retirement accounts
• Other liabilities secured against eligible assets

These balances may reduce the assets available to support the new mortgage.

Total Monthly Debt Obligations

Enter recurring monthly debt payments and negative cash flow from other properties.

This may include mortgage payments, auto loans, student loans, minimum credit card payments, installment debts, alimony, child support, and property-related losses that will continue after closing.

Monthly obligations are also considered when the calculator evaluates a combined asset-and-income qualification using a 45% debt-to-income ratio.

Understanding Your Asset Depletion Results

The calculator evaluates whether the entered financial profile may support the requested loan amount.

Depending on your inputs, the strongest result may come from eligible assets alone or from a calculation that combines eligible assets with recurring income.

The calculator automatically determines which available method produces the higher estimated maximum loan amount.

Sufficient Assets

A “Sufficient Assets” result means the adjusted eligible assets, or the applicable asset-and-income calculation, appear to support the requested loan amount based on the information entered.

Maximum Loan Amount

For an asset-only calculation, the maximum supported loan is based primarily on the eligible assets remaining after the down payment and applicable debt deductions.

For example, assume a borrower has:

• $2,000,000 in adjusted eligible assets
• A $300,000 down payment
• No outstanding debt balances deducted from the calculation

The maximum supported loan would be:

$2,000,000 − $300,000 = $1,700,000

If the borrower requests a $1.2 million loan, the entered assets would appear sufficient.

If recurring income produces a stronger result, the calculator may instead use the combined asset-and-income calculation to determine the maximum supported loan.

Maximum Purchase Price

The maximum purchase price reflects the estimated loan amount supported by the borrower’s financial profile plus the entered down payment.

Using the asset-only example:

$1,700,000 maximum loan + $300,000 down payment = $2,000,000 maximum purchase price

Final qualification still depends on the lender’s credit, reserve, property, income, asset, and underwriting requirements.

Potentially Insufficient Assets

An “Assets Potentially Insufficient” result means the financial information entered does not currently support the requested loan amount under the calculator’s available qualification methods.

The calculator may display:

• Suggested loan amount
• Suggested purchase price
• Estimated additional assets needed

For example, assume a borrower has:

• $1,000,000 in adjusted eligible assets
• A $300,000 down payment
• A requested loan amount of $1,200,000
• No additional qualifying income

The asset-only maximum supported loan would be:

$1,000,000 − $300,000 = $700,000

The suggested purchase price would be:

$700,000 supported loan + $300,000 down payment = $1,000,000

The estimated additional assets needed to support the requested $1.2 million loan would be:

$1,200,000 − $700,000 = $500,000

An insufficient result does not necessarily mean the borrower cannot qualify. Additional assets, recurring income, a different down payment, another property value, or a different loan program may change the outcome.

How Is the Maximum Loan Amount Calculated?

The calculator can evaluate more than one asset depletion method.

Asset-Only Calculation

The asset-only method generally begins with:

Maximum supported loan = Adjusted eligible assets − selected down payment − applicable outstanding debt balances

The maximum purchase price is then estimated by adding the down payment back to the supported loan amount.

Assets Plus Monthly Income

When recurring income is included, the calculator can also evaluate:

Monthly asset income = Adjusted eligible assets ÷ 60

That amount is added to the eligible monthly income entered:

Combined qualifying income = Monthly asset income + eligible monthly income

A 45% debt-to-income ratio is then applied after accounting for applicable monthly obligations and housing expenses.

The calculator automatically uses whichever available calculation produces the higher estimated loan amount.

Final lender calculations may differ because asset types can receive different eligibility percentages, income must meet documentation requirements, and additional reserves may be required.

Asset Depletion Calculation Example

Assume a borrower is purchasing a $1.5 million home and enters:

• $300,000 down payment
• $1,400,000 in checking, savings, money market accounts, and CDs
• $400,000 in marketable securities
• $300,000 in retirement assets
• $100,000 in outstanding debt balances

Total entered assets:

$1,400,000 + $400,000 + $300,000 = $2,100,000

After applicable lender adjustments, assume $1,950,000 remains eligible.

Maximum supported loan under the asset-only method:

$1,950,000 − $300,000 down payment − $100,000 debt balances = $1,550,000

Requested loan amount:

$1,500,000 purchase price − $300,000 down payment = $1,200,000

Because the $1.55 million supported loan exceeds the $1.2 million requested loan, the assets would appear sufficient.

If the borrower also enters eligible monthly income, the calculator will evaluate the combined asset-and-income calculation and use it instead if it supports a larger loan amount.

Conventional vs. Non-QM Asset Depletion

Conventional asset depletion guidelines commonly convert eligible assets into monthly income over a longer calculation period. That can produce limited qualifying income even when the borrower has a substantial portfolio.

This calculator uses a non-QM asset qualification methodology that may provide more favorable treatment of eligible assets.

For example, a conventional calculation that spreads $3 million of eligible assets over 360 months produces approximately $8,333 in monthly qualifying income. Certain non-QM programs can evaluate the same assets using significantly more favorable calculations.

The non-QM rate will generally be slightly higher than a comparable conventional rate. For borrowers whose financial strength is concentrated in investments, retirement accounts, cash, or other eligible assets, the additional qualification may be more important than the pricing difference.

In some cases, the non-QM calculation may support a loan amount up to six times greater than conventional asset depletion guidelines.

What Assets Can Be Used for an Asset Depletion Mortgage?

Eligible assets generally include funds that are documented, owned by the borrower, sufficiently liquid, and acceptable under the selected program.

Depending on the borrower and loan program, this may include:

• Checking and savings accounts
• Money market accounts
• Certificates of deposit
• Publicly traded stocks
• Bonds and Treasury securities
• Mutual funds
• Exchange-traded funds
• Vested retirement accounts
• Cash value of eligible life insurance policies
• Certain annuity balances
• Bitcoin and Ethereum holdings
• Eligible cash-out proceeds

The lender may review account history, ownership, accessibility, and asset composition before determining how much of the balance can be used.

Borrowers with substantial liquid or retirement assets can review available asset depletion mortgage options.

What Assets May Be Excluded or Reduced?

Not every asset shown on a financial statement will count toward qualification.

Lenders may exclude or reduce the value of:

• Unvested restricted stock
• Stock options that have not vested
• Privately held company shares
• Unsupported cryptocurrency holdings
• Borrowed funds
• Assets pledged as collateral
• Business funds needed for ongoing operations
• Accounts owned by an ineligible third party
• Retirement assets that cannot be accessed
• Funds needed for the down payment
• Required post-closing reserves

The lender may also discount investments whose value can fluctuate.

Brokerage Accounts and Marketable Securities

Brokerage accounts are commonly used for asset depletion qualification.

Eligible holdings may include:

• Publicly traded stocks
• Bonds
• Mutual funds
• Exchange-traded funds
• Treasury securities
• Cash held within the account

The lender may apply a percentage reduction to account for changes in market value.

Using the portfolio for qualification does not generally require the borrower to liquidate every investment. This can allow the borrower to keep assets invested, retain liquidity, and avoid selling a significant position solely to document mortgage qualification.

Retirement Accounts

Vested retirement accounts may be used for qualification when the borrower owns the account and the funds meet the program’s accessibility requirements.

Eligible retirement accounts may include:

• 401(k) accounts
• 403(b) accounts
• Traditional IRAs
• Roth IRAs
• Certain pension accounts
• Other vested retirement plans

The amount accepted may depend on the borrower’s age, withdrawal restrictions, tax treatment, early-withdrawal penalties, and whether distributions have already started.

Do I Have to Sell My Investments?

Asset depletion qualification generally does not require the borrower to sell the full portfolio.

The assets are documented and reviewed under the lender’s calculation. Funds needed for the down payment and closing costs may need to be liquidated, but the remaining portfolio can often stay invested.

This may help borrowers avoid unnecessary capital gains, preserve their investment strategy, and retain access to liquid assets after closing.

What If I Have Income I’d Like to Use With Asset Depletion?

Asset depletion mortgages are primarily designed for borrowers who want to qualify using eligible assets rather than employment income. However, if you also receive recurring income, the calculator can consider it when doing so increases your estimated qualifying loan amount.

This may include:

• W-2 wages
• Social Security
• Pension income
• Retirement distributions
• Rental income
• Other eligible recurring income

When monthly income is entered, the calculator compares the standard asset depletion calculation with an alternative calculation that combines your income with adjusted eligible assets divided over 60 months. A 45% debt-to-income ratio is then applied to estimate the loan amount that combination may support.

The calculator automatically uses whichever method produces the higher estimated qualification.

For self-employed borrowers who want to include business income but are unsure what monthly amount a lender may recognize, the bank statement calculator can estimate qualifying income from eligible deposits and business expenses.

What Affects Your Asset Depletion Mortgage Qualification Results?

Down Payment

A larger down payment lowers the requested loan amount but also reduces the assets remaining after closing. The calculator accounts for both effects.

Asset Type

Cash may receive more favorable treatment than marketable securities, retirement accounts, life insurance, or cryptocurrency.

Monthly Income

Recurring income can supplement eligible assets when the combined calculation produces a stronger result. Income must still meet the selected program’s documentation requirements.

Outstanding Debt Balances

Debt balances that remain after closing may reduce the assets available to support the new mortgage.

Monthly Obligations

Recurring debt payments and negative cash flow from other properties may reduce qualification, particularly when a debt-to-income calculation applies.

Required Reserves

The lender may require additional assets to remain available after the down payment and closing costs are paid.

Account Ownership

Only the borrower’s eligible ownership interest can generally be used.

Property Details

Property type, occupancy, loan amount, and location may affect available programs.

Credit Profile

Credit history may influence the down payment, rate, reserves, and maximum loan amount available.

How to Get a More Accurate Asset Depletion Estimate

Use Current Account Values

Enter recent balances that reflect the current value of each account.

Separate Assets by Type

Enter cash, marketable securities, retirement funds, insurance cash value, cryptocurrency, and cash-out proceeds in the appropriate fields.

Enter the Actual Down Payment

Use the amount you realistically expect to contribute at closing because the calculator deducts it from eligible assets.

Include Monthly Income When Applicable

If you have W-2 wages, Social Security, pension, rental, or other recurring income, include it so the calculator can determine whether combining income with your assets produces a stronger result.

Self-employed borrowers who are unsure what monthly income to enter can use the bank statement calculator first.

Include Remaining Debt

Enter outstanding balances and monthly obligations that will continue after closing.

Remove Ineligible Funds

Do not include borrowed money, unvested compensation, inaccessible accounts, or business funds needed for operations.

Have LendFriend Review the Assets

LendFriend can review the accounts before underwriting, apply the appropriate eligibility percentages, account for reserve requirements, and determine which asset depletion program may support the requested financing.

Borrowers purchasing or refinancing in Texas or New Jersey can also receive guidance based on the property, requested loan amount, and borrower profile.

Work With an Experienced Asset Depletion Mortgage Broker

Asset depletion calculations can vary substantially between lenders.

The same portfolio may produce different results depending on:

• Asset eligibility percentages
• Retirement account treatment
• Borrower age
• Reserve requirements
• Down payment
• Income treatment
• Debt deductions
• Account ownership
• Property type
• Occupancy
• Loan amount

LendFriend reviews the portfolio before the loan reaches underwriting so borrowers have a clearer understanding of which assets may count, whether recurring income can strengthen the file, what documentation may be needed, and how much financing the financial profile may support.

That upfront review is especially valuable when the borrower has multiple brokerage accounts, concentrated stock positions, retirement assets, cryptocurrency, life insurance cash value, recurring income, complex ownership, or a jumbo loan request.

Asset Depletion Calculator Results Are Estimates

This calculator is provided for educational purposes only. It does not represent a loan approval, commitment to lend, guaranteed interest rate, or final asset or income determination.

The calculator uses a non-QM asset depletion methodology and may evaluate both asset-only and asset-plus-income qualification methods. Non-QM mortgage rates are generally slightly higher than comparable conventional rates, but the calculation may support substantially greater financing. In certain scenarios, a borrower may qualify for a loan amount up to six times greater than the amount supported under conventional asset depletion guidelines.

Actual results may vary based on asset eligibility, account ownership, asset type, market value, withdrawal restrictions, income eligibility, down payment, closing costs, required reserves, debt balances, monthly obligations, property details, occupancy, credit profile, interest rate, and lender guidelines.