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, and money market funds
• Marketable securities
• Retirement accounts
• Cash value of life insurance
• Eligible Bitcoin and Ethereum holdings
• Cash-out proceeds, when applicable
• Outstanding debt balances
• Monthly debt obligations

The calculator uses a non-QM asset depletion calculation. 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, 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. The calculator will compare the requested loan amount with the assets available to support it.

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, and money market accounts
• 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. The lender may apply different percentages to certain account types after reviewing liquidity, accessibility, market risk, ownership, and withdrawal restrictions.

Checking, Savings and Money Market Accounts

Enter funds held in checking accounts, savings accounts, money market accounts, 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 must generally 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.

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

The calculator deducts these balances when determining the maximum loan amount the assets may support.

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 may affect final underwriting even when the borrower has enough assets to support the requested loan amount.

Understanding Your Asset Depletion Results

The calculator compares the requested loan amount with eligible assets remaining after the down payment and applicable debt deductions.

The results will show whether the entered assets appear sufficient, the maximum loan amount they may support, and the maximum purchase price available with the entered down payment.

Sufficient Assets

A “Sufficient Assets” result means the adjusted eligible assets appear to support the requested loan amount based on the information entered.

The calculator will display:

Maximum Loan Amount

The maximum loan amount represents the eligible assets remaining after the down payment and applicable 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.

Maximum Purchase Price

The maximum purchase price combines the maximum supported loan with the entered down payment.

Using the same example:

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

This estimate assumes the entered down payment remains available and that the borrower satisfies the lender’s remaining credit, reserve, property, and underwriting requirements.

 Potentially Insufficient Assets

An “Assets Potentially Insufficient” result means the eligible assets remaining after the down payment and applicable deductions do not fully support the requested loan amount.

The calculator will display:

• Suggested loan amount
• Suggested purchase price
• Additional assets needed for the requested loan amount

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

The 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 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. Other assets, income sources, 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 generally uses the following calculation:

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

The maximum purchase price is then calculated as:

Maximum purchase price = Maximum supported loan + down payment

The calculator may also consider monthly debts and property assumptions when estimating whether the requested financing appears supportable.

Final lender calculations may differ because asset types can receive different eligibility percentages 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, and money market accounts
• $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 the lender applies any required asset adjustments, assume $1,950,000 remains eligible.

Maximum supported loan:

$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 based on the entered information.

Conventional vs. Non-QM Asset Depletion

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

This calculator uses a non-QM asset qualification method that may allow eligible assets remaining after the down payment and applicable deductions to support the loan more directly.

For example, a conventional calculation that spreads $3 million of eligible assets over 360 months may produce approximately $8,333 in monthly qualifying income. A qualifying non-QM program may recognize the portfolio in a way that supports meaningfully more financing.

The non-QM rate will generally be slightly higher than a comparable conventional rate. For borrowers whose assets demonstrate significantly greater financial strength than their documented income, the additional qualification can outweigh 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 expected to remain available after closing.

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 protect against 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 income.

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.

Can I Qualify Without Employment Income?

Certain asset depletion programs allow borrowers to qualify without employment income.

This can be useful for:

• Retired borrowers
• Investors living from accumulated wealth
• Recently retired executives
• Borrowers between high-level positions
• Business owners with substantial tax deductions
• Borrowers who recently sold a company
• High-net-worth borrowers with significant investment assets

What Affects Your Asset Depletion 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.

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 affect final qualification.

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 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
• 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, what documentation may be needed, and how much financing the portfolio 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, 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 determination.

The calculator uses a non-QM asset depletion methodology. 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, down payment, closing costs, required reserves, debt balances, monthly obligations, property details, occupancy, credit profile, interest rate, and lender guidelines.