Complete Asset Depletion Loan Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An asset depletion loan qualifies you for a mortgage based on your liquid assets rather than monthly income. It suits retirees and wealthy borrowers who have substantial savings but limited reportable income.
This guide explains how asset depletion works, who benefits, and the rules in Florida. Mortgage Capital, NMLS# 1859012, helps asset-rich Florida buyers qualify on their savings.
How asset depletion works
Instead of using your paycheck, the lender converts your eligible liquid assets into an imputed monthly income by dividing the qualifying balance over a set number of months.
That calculated income is then used like any other income to qualify you for the loan.
Who benefits
Asset depletion loans help retirees living off savings, individuals between jobs with large reserves, and high-net-worth borrowers whose income is modest relative to their wealth.
If you have the assets to support payments but cannot show enough monthly income, this program bridges the gap.
Eligible assets
Lenders count liquid assets like checking, savings, and investment accounts, and often a portion of retirement accounts. They typically discount volatile assets and exclude funds needed for the down payment.
The larger and more liquid your portfolio, the more income the calculation produces.
Down payment and terms
Asset depletion loans are usually portfolio or non-QM products with down payments around 20% to 30% and competitive but slightly higher rates. Strong credit improves terms.
Because qualifying rests on assets, lenders want verified, seasoned accounts.
Using asset depletion in Florida
Florida's many retirees make asset depletion especially useful here. It lets someone with a paid-off home and a strong portfolio buy without traditional income.
We structure the calculation to maximize qualifying income from your portfolio.
Complete Asset Depletion Loan Guide: step by step
Frequently asked questions
What is an asset depletion loan?
A mortgage that qualifies you on your liquid assets instead of monthly income, converting your savings into imputed income.
Who uses asset depletion loans?
Retirees, high-net-worth borrowers, and people between jobs who have large reserves but limited reportable income.
What assets count?
Liquid accounts like checking, savings, and investments, plus a portion of retirement funds, excluding the down payment.
How is the income calculated?
The lender divides your qualifying asset balance over a set number of months to produce a monthly income figure.
What down payment is required?
Usually 20% to 30%, since these are portfolio or non-QM loans, with better terms for strong credit.
Are asset depletion rates higher?
Slightly, as a specialty program. Strong credit and large reserves improve the pricing.
Do I need any income at all?
Not necessarily. The qualifying income comes from your assets, though some programs blend asset and actual income.
Is this good for Florida retirees?
Yes. It lets retirees with strong portfolios buy without traditional employment income, common in Florida.