For Retirees, Investors & High-Net-Worth Borrowers
Your tax return doesn't have to be the whole story.
If your real wealth lives in investments, retirement accounts, or savings rather than a paycheck, an asset depletion loan converts what you already have into a qualifying income figure — no tax returns, no W-2s.
By Loi Tran, Licensed California Loan Officer, 11 years of mortgage experience, NMLS #454267
Before we start: this guide is educational and general. Asset depletion formulas, percentages, and depletion periods vary significantly by lender and program — verify your specific numbers directly with us before relying on them.
Instead of using your tax returns or pay stubs, the lender takes your verified liquid and retirement assets, applies a discount to certain account types, subtracts what you'll need for your down payment and closing costs, and divides what's left by a set number of months. The result is a monthly "qualifying income" figure — used in your loan application exactly the way employment income would be.
Your portfolio doesn't have to be touched or liquidated. It stays invested. The lender is using the balance as proof of financial capacity, not as an actual repayment source.
Who this solves a real problem for: retirees living off a portfolio, business owners whose tax strategy minimizes reported income, and investors whose wealth is real but doesn't show up as a W-2 or 1099. If your tax return understates what you can actually afford, this is built for exactly that gap.
Two real paths — not one single product
Most content treats "asset depletion" as one thing. It isn't — the path you're on changes your numbers dramatically.
Why this matters more than almost anything else in this whole process: the exact same asset pool can produce dramatically different qualifying income depending on which path you're on. Running your numbers under both, before deciding, is worth far more than negotiating anything later in the process.
What counts, and at what percentage
Not every dollar in an account counts the same way. Lenders apply a "haircut" that varies by how liquid and stable each asset type is.
Cash, checking, savings, CDs, money market: counted at 100% — the one figure every lender agrees on.
Stocks, bonds, mutual funds: commonly 70-80% of current value.
Retirement accounts (IRA, 401(k)): the percentage genuinely varies by lender and your age — see the honest breakdown below.
The retirement account rule that actually matters: age 59½
Every source on this is consistent about one thing: age 59½ is the real dividing line, because it's tied to the actual IRS early-withdrawal penalty, not an arbitrary lender preference. What varies is the exact percentage on either side of that line:
Age
Typical range counted
59½ or older
70-100% of vested balance, depending on the lender
Under 59½
60-70% of vested balance, reflecting the early-withdrawal penalty
We're stating this as a real range rather than one number, because it genuinely is one — a lender-by-lender comparison is worth doing rather than assuming a single figure.
What doesn't count
Unvested stock or stock options, business account equity without full documented access, life insurance cash value, real estate equity, and assets held in a trust unless you're the trustee with full control. Assets also typically need 60-90 days of seasoning in the account before your application.
Estimate your range
Enter your real numbers below. This tool shows a range on purpose, not one single figure — the honest answer to "what's your qualifying income" genuinely depends on which lender and program you end up with, and showing one precise-looking number would overstate how exact this actually is.
Asset Depletion Income Estimator
Enter your real numbers — this stays on your device, nothing is sent anywhere. This tool produces an estimate only, not a loan approval or pre-qualification.
This is an estimate for planning purposes only — not a loan approval, pre-qualification, credit decision, or commitment to lend. Real lender formulas, haircuts, and depletion periods vary and must be confirmed directly. The next real step is talking with me directly and going through actual underwriting review — that's the only way to know your real number.
A real worked example
Say a 62-year-old retiree has $150,000 in savings, $400,000 in a brokerage account, and $600,000 in a 401(k), and needs $250,000 for a down payment and closing costs.
Liquid: $150,000 at 100% = $150,000
Investment: $400,000 at 75% (midpoint) = $300,000
Retirement (59½+): $600,000 at 85% (midpoint) = $510,000
Total eligible: $960,000, minus $250,000 needed for costs = $710,000 net usable
At a 120-month non-QM divisor: $5,917/month. At a 360-month agency divisor: $1,972/month — the same assets, a nearly 3x difference, purely from which path is used. This is exactly why Step 2's distinction matters more than almost anything else in this process.
Who this is actually for
Retirees living off a portfolio rather than a paycheck. Business owners whose CPA-optimized tax returns understate real cash strength. Investors and high-net-worth borrowers whose wealth is genuinely there but doesn't fit a W-2 box. If your tax return is the only obstacle between you and a mortgage that reflects your actual financial position, this is the program built for that specific gap.
Self-employed and your tax write-offs are the issue? Our self-employed mortgage solutions guide covers bank statement and P&L programs too — asset depletion is one path among several, and the right one depends on where your financial strength actually lives.
Want the full comparison against DSCR and self-employed programs? Our non-QM overview lays out all three paths side by side. In or near retirement, with substantial home equity instead? Our reverse mortgage guide covers a different way to access what you've built.
Plain-English Glossary
Asset depletion (asset utilization)
Converting liquid and retirement assets into a monthly qualifying-income figure instead of using employment income.
Haircut
The discount applied to an asset type to reflect how liquid, stable, or accessible it actually is — cash gets no haircut, retirement accounts get the largest one.
Depletion period
The number of months eligible assets are divided by — the single biggest variable in the whole calculation.
Seasoning
The requirement that funds sit in an account for a minimum period (commonly 60-90 days) before being counted, to prevent last-minute transfers.
Questions
Eligible assets (after haircuts by account type) minus the amount needed for down payment, closing costs, and reserves, divided by a depletion period in months. The result is a monthly qualifying income figure used the same way employment income would be.
No. Asset depletion loans qualify you based on verified account balances instead of tax returns, W-2s, or pay stubs. You'll still verify identity, credit, and the assets themselves.
Yes, though the percentage counted depends heavily on your age. Age 59½ is the consistent threshold across lenders, tied to the real early-withdrawal tax penalty — the exact percentage on either side of that line varies by program.
A DSCR loan qualifies you based on a specific investment property's rental income relative to its payment. An asset depletion loan qualifies you based on your own liquid and retirement assets, independent of any specific property's cash flow.
Get your real number, not an estimate
The calculator above gives you a range. A real conversation gets you an actual answer — no credit pull required to start.