An asset depletion mortgage may help an eligible borrower qualify by converting verified assets into a calculated monthly income amount. This option can be useful for retirees, high-net-worth borrowers, and applicants with substantial liquid assets but limited traditional employment income.
What Is an Asset Depletion Mortgage?
Asset depletion—also called asset dissipation—is an underwriting method, not a requirement to withdraw or spend the assets. The lender applies its program rules to eligible verified assets and calculates a monthly qualifying-income figure. The exact eligible percentage, discounts, and calculation period vary by lender and program.
Important distinction: assets used for the down payment, closing costs, or required reserves may not also be available for the income calculation. A complete asset review is necessary before estimating qualifying income.
Assets That May Be Considered
Cash & Deposit Accounts
Checking, savings, and money-market funds may be considered when they are documented, sourced, and available under the program’s rules.
Brokerage & Investment Accounts
Eligible stocks, bonds, mutual funds, and other investment assets may be discounted for market movement before the calculation.
Retirement Assets
Some programs permit eligible retirement accounts, subject to the borrower’s access, age, account terms, taxes, and potential penalties.
Other Eligible Liquid Assets
Additional verified liquid assets may qualify when accepted by the lender. Restricted, borrowed, or otherwise ineligible funds may be excluded.
Who May Be a Good Fit?
This approach may fit retired borrowers, investors, business owners, recently retired executives, or high-net-worth applicants whose taxable or employment income does not reflect their overall financial capacity. A full review determines whether asset depletion, a bank statement loan, a 1099 mortgage, or another non-QM loan is more appropriate.
How the Review Works
- Document account ownership, current balances, and the source of eligible assets.
- Subtract transaction funds, required reserves, and any ineligible or restricted amounts.
- Apply the selected lender’s asset discounts and calculation period.
- Review credit, obligations, property, occupancy, appraisal, and the complete loan file.
Common Qualification Factors
Borrower Profile
Credit history, housing-payment history, monthly obligations, and any recurring income remain part of the review.
Available Assets
The calculation uses eligible assets remaining after transaction funds and required post-closing reserves.
Property & Loan
Property type, occupancy, appraisal, loan amount, and loan-to-value ratio affect eligibility and pricing.
Frequently Asked Questions
Do I have to liquidate my investments?
Not necessarily. Asset depletion is typically a qualifying calculation. However, transaction funds and reserves must be available as required, and market-value changes can affect the verified balance.
Can retirement accounts be used?
Some programs permit eligible retirement assets, often with discounts or access requirements. The borrower’s age, account terms, penalties, and distribution status may affect eligibility.
Is an asset depletion loan available nationwide?
Availability varies by state, lender, property, occupancy, and borrower profile. 1st Capital Group can review the scenario and identify programs available for the specific transaction.
Reviewed Guidance and Sources
Reviewed by Nick Lazarevic, NMLS #386391
1st Capital Group, dba of GFL Capital Mortgage Inc, Company NMLS #64367. Content reviewed July 20, 2026.
Asset calculations are program-specific. For comparison, Fannie Mae’s current guide applies detailed eligibility, access, discount, closing-fund, reserve, occupancy, and loan-to-value rules to employment-related assets. Non-QM lenders may use different asset-depletion methods.
Let Us Review Your Assets
A preliminary review can help identify which accounts may be eligible and whether asset depletion is the right program to compare.
1st Capital Group as dba of GFL Capital Mortgage Inc | Company NMLS #64367 | Nick Lazarevic NMLS #386391 | Licensed Mortgage Lender | Equal Housing Opportunity | All loans subject to lender underwriting approval. Programs, rates, terms, and conditions are subject to change without notice. Not a commitment to lend.