Asset Qualifying Loan Pricer
Qualify using your liquid assets instead of traditional income documentation. Perfect for retirees living off investments, high-net-worth individuals, or anyone with substantial savings who doesn't have traditional W-2 income. Your assets are divided over a qualifying period to calculate monthly income - no tax returns needed.
Asset Qualifying Loan Facts
- Qualify using liquid assets instead of traditional income documentation
- No tax returns, W-2s, or pay stubs required
- Ideal for retirees, self-employed, or borrowers with significant savings
- Typically requires substantial liquid assets (bank statements, investment accounts)
- Higher minimum credit scores usually required (700+)
- Available for primary residence, second home, or investment property
- Slightly higher rates than standard conventional loans
- Assets are divided over a qualifying period (typically 36-84 months) to calculate monthly income
How Asset Depletion Income Is Calculated
Asset depletion (sometimes called an asset qualifier or asset utilization loan) converts a pool of liquid assets into a synthetic monthly income figure. Different lender programs use different divisors. The lower the divisor, the higher the qualifying income, and the larger the loan a borrower can support.
Formula
Monthly qualifying income = (Eligible assets x asset multiplier) / divisor in months
- 360 months - conservative path used in standard agency guidelines
- 240 months - common mid-tier non-QM divisor
- 180 months - another mid-tier option some programs use
- 120 months - more aggressive non-QM treatment (10-year asset depletion)
- 60 months - the most permissive published divisor (5-year asset depletion, sometimes called a 5-year asset qualifier)
Why the divisor matters
Example: $2,000,000 in non-retirement assets, 60-month formula, produces about $33,333 per month in qualifying income. The same $2,000,000 on a 360-month formula produces about $5,555 per month. Same assets, very different loan size.
We work with lenders that allow the most permissive published divisor where the borrower's profile fits. Want to model your own numbers across all five divisors? Try our asset depletion calculator.
Case Studies
Names anonymized. Specific situations our team has structured.
Early Retiree, 55
Recently retired from a tech career with $3.5M in brokerage and $800K in an IRA. Living off portfolio withdrawals so taxable income looks light on returns. Wanted a $1.5M primary-residence mortgage and was rejected by two banks on income.
Math: Brokerage at 100% = $3.5M + IRA at 70% (under 59.5) = $560K. Total eligible pool $4.06M. At 60 months = about $67,667 per month in qualifying income. Easily supports the $1.5M target at typical jumbo DTI.
We placed it on a 5-year asset depletion program with a lender that allows the 60-month divisor.
Tech Worker Between Roles
Senior engineer who left a public company with $2M in vested equity and was taking time off before a new role. No current W-2. Severance running for six months. Wanted $750K to buy.
Math: Vested brokerage at 100% = $2M. At 60 months = about $33,333 per month qualifying income. Severance documented as a bridge layer. Plenty of room for $750K.
We structured the file as asset depletion primary, severance secondary, and closed before the new role started.
Business Owner, Low Taxable Income
Owns a multi-entity operating business. Aggressive depreciation and reinvestment drives taxable income on Schedule C to a fraction of cash flow. About $5M between operating reserves and personal brokerage. Conventional underwriting could not get there. Target loan $2M.
Math: $5M eligible at 100% (personal liquid and operating reserves in accessible accounts). At 60 months = about $83,333 per month qualifying income. Comfortably covers the $2M target.
We work with lenders that allow asset depletion for active business owners where the personal liquid pool meets the divisor test.
What Counts as Eligible Assets
100% credit
- Cash and money market
- Certificates of deposit (CDs)
- Brokerage holdings: stocks, bonds, mutual funds, ETFs
- Retirement accounts for borrowers age 59.5 or older (penalty-free withdrawal available)
70 to 80% credit
- Retirement accounts for borrowers under 59.5: IRA, 401(k), 403(b), Roth
- Discount reflects early-withdrawal restrictions and tax friction
Typically excluded
- Real estate equity (different programs treat this separately)
- Equity in privately held businesses
- Crypto (varies; specialty programs may discount heavily)
- Restricted stock prior to vest
- Inherited but unsettled assets
Comparison to Other High-Net-Worth Mortgage Paths
- Asset Qualifying / Asset Depletion: best when you have substantial liquid assets but irregular or low documented income. No tax returns required.
- Bank Statement Loans: best for self-employed borrowers with strong, consistent revenue but a complicated asset picture. Learn more.
- Pledged Asset Mortgage: keeps your investment portfolio working in the market instead of liquidating for down payment. Learn more.
- Conventional or Jumbo with W-2 income: best if your W-2 income alone supports the target loan amount and you want the lowest available rate tier.
Frequently Asked Questions
What is the most permissive asset depletion formula?
The 60-month divisor (5-year asset depletion) is the most permissive published divisor we see in the non-QM market. It produces six times the qualifying income that the conservative 360-month formula produces from the same asset pool. Not every borrower profile fits a 60-month program, but our team works with lenders that allow it when the file qualifies.
Do I have to be retired to qualify with asset depletion?
No. Asset depletion is available to working professionals, business owners, between-roles borrowers, and retirees alike. The qualification is based on the eligible asset pool, not on employment status. Many of our asset depletion borrowers are still earning, they just have income that does not document cleanly.
Can my retirement account count if I am under 59 and a half?
Yes, typically at a 70 to 80% discount to reflect early-withdrawal restrictions and tax friction. So a $1,000,000 401(k) for a 50-year-old borrower would generally be counted at $700,000 to $800,000 in the eligible asset pool. Once you cross 59.5, most programs count retirement accounts at 100%.
Bank Statement Loans
Qualify using bank deposits - for self-employed
1099 Income Loans
Qualify using 1099 forms - for contractors and gig workers
Want to see your numbers?
Run your eligible assets through our depletion calculator and compare qualifying income across all five common divisors.
Open the asset depletion calculatorRelated guides
Pledged asset mortgages
Use brokerage assets as collateral instead of liquidating for a down payment.
Asset depletion calculator
Estimate the monthly qualifying income your portfolio can support.
High-net-worth mortgages
Strategies and lenders for borrowers with significant liquid assets.
Bank statement loans
Self-employed alternative that qualifies on deposit history, not tax returns.