An Asset-Depletion loan (also called an Asset-Based mortgage) allows you to qualify for a home loan using your liquid assets — such as bank accounts, investment portfolios, or retirement funds — instead of traditional income documentation.
Your lender calculates a monthly qualifying income by dividing your total eligible assets by a set term (usually 60–120 months).

Asset-Depletion loans are ideal for:

Retirees living off savings or investments

High-net-worth individuals with minimal taxable income

Self-employed borrowers with significant assets but inconsistent cash flow

Investors with funds tied up in securities or business accounts

Lenders “deplete” your assets over time to create an income stream on paper. For example:
If you have $1,200,000 in qualifying assets and the lender uses a 120-month term, your monthly qualifying income is $10,000 ($1,200,000 ÷ 120) — even if you’re not drawing that money.
That amount is then used to determine your debt-to-income ratio.

Eligible assets typically include:

Checking or savings accounts

Stocks, bonds, and mutual funds

Retirement accounts (401k, IRA, SEP) — with certain age or withdrawal adjustments

Money market and brokerage accounts

Trust funds or vested stock portfolios

Assets must be fully vested and liquid (or easily liquidated) to qualify.

Yes. Lenders generally exclude:

Non-vested or restricted stock units (RSUs)

Business equity without verifiable liquidity

Personal property (cars, jewelry, etc.)

Real estate holdings (unless being sold)

Typical down payments range from:

20% for primary residences

25–30% for second homes or investment properties
Lenders may require higher down payments if assets are volatile (like stocks or crypto).

Minimum credit score: 680, with most programs favoring 700+ for best rates.
A strong asset base can offset other weaknesses, but higher credit scores help reduce pricing adjustments.

Yes, but lenders apply a discount factor (often 70–80%) to account for potential penalties or taxes on early withdrawals.
If you’re over 59½, the full eligible balance is typically counted.

Because these are Non-QM loans, there are no conforming limits.
Many Texas lenders offer asset-based loans from $250,000 up to $5 million or more, depending on verified assets and credit profile.

No. Most lenders do not require PMI, even with down payments below 20%, since these loans are structured outside conventional agency guidelines.

Yes. Asset-Depletion loans can be used for primary residences, second homes, or investment properties, provided the borrower meets reserve and asset requirements.

Usually just:

Most recent 2–3 months of account statements

Proof of ownership and liquidity (e.g., brokerage statements)

Signed asset-depletion worksheet or verification form
No tax returns or income documentation required.

Most lenders require proof that your assets have been seasoned for at least 60–90 days — meaning they weren’t recently borrowed, gifted, or transferred.

No tax returns or income verification required

Qualify based on liquidity and net worth

No PMI

Works well for retirees or investors

Flexible loan amounts and property types

Can complement a larger financial plan or retirement strategy

Slightly higher interest rates than traditional loans

Requires substantial liquid assets

Market-based assets (stocks, funds) can fluctuate in value

Not eligible for Fannie Mae, Freddie Mac, or government programs