Asset Depletion Guidelines in Florida: Qualifying on Savings

Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.

Asset depletion converts what you own into a monthly income figure. The lender divides your qualifying assets by a number of months and treats the result as income.

It exists for people who are wealthy on paper and thin on documented monthly earnings. Our asset depletion page covers the program.

The calculation

Take your qualifying assets. Divide by a term, commonly 60, 84 or 120 months depending on the program.

A borrower with $1.2 million and a 120-month divisor shows $10,000 a month.

That figure goes into the debt-to-income calculation as though it were salary.

No withdrawal is required. You are not spending the assets, only demonstrating you could.

What counts, and at what value

Checking, savings and money market accounts usually count at full value.

Brokerage accounts typically count at 70% to 80%, discounting for market risk.

Retirement accounts count at a reduced value, often 70%. Some lenders exclude them entirely if you are under 59 and a half.

Anything used for the down payment and closing costs is subtracted first. You cannot count the same dollar twice.

What does not count

Real estate equity. It is not liquid, and lenders will not treat it as such.

Business accounts, unless you can document sole ownership and unrestricted access.

Crypto, at most lenders, though a few now accept it after conversion and seasoning.

Assets held jointly with someone not on the loan, at least in part.

Who this actually suits

Retirees with substantial savings and modest reported income. This is the classic case, and Florida has more of them than any other state.

Business owners whose returns understate real wealth after write-offs.

Anyone between roles with a strong balance sheet.

Borrowers who inherited assets and have no employment history to show.

How it compares to other non-QM routes

If you have consistent deposits, a bank statement loan usually produces a higher qualifying figure.

If the property is a rental, a DSCR loan skips your income entirely and often prices better.

Asset depletion is the right tool when neither applies: real wealth, no income stream a lender recognises.

The CFPB explainer on non-QM lending covers the category these sit in.

What it costs

Expect a rate above conventional, though the gap has narrowed.

Down payment usually starts at 20%, sometimes 25% or 30% on larger loans.

Reserves are required on top of the depleted assets, which surprises borrowers who assumed the portfolio covered both.

Prepayment penalties are less common here than on investor loans, but ask.

Seasoning and documentation

Lenders want two to three months of statements showing the assets in place.

Large recent transfers draw questions. Move money into position well before you apply.

You will document ownership and unrestricted access for every account counted.

For jointly held accounts, expect a letter from the co-owner or a reduced credit.

The Florida angle

Florida attracts retirees with portfolios and no W-2, which is exactly this borrower.

No state income tax also means no state return to corroborate income, which pushes more files toward asset-based qualifying.

The usual Florida costs still apply. High insurance premiums sit inside your debt ratio and consume the qualifying income you just calculated.

Get an insurance quote for the specific address before assuming the file works.

Combining it with other income

Asset depletion does not have to stand alone.

Most lenders will add it to social security, pension or part-time employment income.

That combination frequently carries a retiree who would fail on either source by itself.

Bring documentation for every stream. Underwriters cannot count what they cannot see.

Divisors vary more than rates

One lender uses 60 months, another 120, on the same borrower.

That difference doubles or halves your qualifying income before rate enters the picture.

It is the single biggest variable in whether an asset depletion file works.

Shopping the divisor matters more than shopping the rate, which is unusual in mortgage lending.

Where it fails

Assets that cannot be verified as yours and accessible.

Portfolios held in trust with restricted access.

Recent large deposits without a documented source.

And files where the depletion income covers the mortgage but nothing else. Lenders look at the whole picture, not just the ratio.

What to ask a lender

What divisor do you use, and does it change with age or account type?

How do you discount brokerage and retirement accounts?

Are reserves required on top of the assets counted for income?

Those three answers determine whether the file works far more than the rate does.

Second homes and investment property

Asset depletion is available beyond primary residences at many lenders.

Expect a larger down payment and a shorter divisor on both.

For a rental, compare against a DSCR loan first. Qualifying on the rent is usually simpler and often prices better.

Bring this to the first call

A list of accounts with balances and account types.

Whether each is solely yours or held jointly.

That is enough for us to estimate your qualifying income across several divisors.

Where to start

Total your liquid and near-liquid assets, then subtract what you will use for down payment and closing.

Bring two to three months of statements for each account.

We will run the depletion calculation across several lenders, since the divisors and discount rates differ meaningfully.

Start with a pre-approval.