Asset Depletion Mortgage
Asset utilization loan and asset based mortgage. Qualify on savings, stocks, and retirement accounts — no paycheck or pension required.
Zack Cervantes · NMLS #502342 · New American Funding
See What You Qualify For
Free · No credit pull · About 60 seconds
Are you buying or refinancing?
An asset depletion mortgage (also called asset utilization or asset based mortgage) lets you qualify for a home loan using your savings, stocks, and retirement accounts instead of traditional employment income. The lender divides your total eligible assets by the loan term — typically 360 months for a 30-year loan — to calculate monthly qualifying income. No job, W-2, or tax return required. Zack Cervantes (NMLS #502342) at New American Funding offers asset depletion loans in 48 states.
Your Assets
Your Results
Monthly Qualifying Income from Assets
$5,556/mo
Max Loan Amount
$208,761
DTI Ratio
113.8%
Monthly Payment
$5,322
Depletion Period
360 mo
No income verification needed. Your $2,000,000 in liquid assets generates $5,556/mo in qualifying income using the asset depletion method.
Also for Retirees & Complex Income
Asset Utilization Loan
An asset utilization loan converts your liquid assets into qualifying income for a mortgage. The lender divides your eligible assets by the loan term to produce a monthly income figure — no W-2, no tax return, no pension required. The product is functionally identical to an asset depletion mortgage; some lenders use one term and some use the other.
Asset Based Mortgage
An asset based mortgage qualifies the borrower on what they own, not what they earn. Eligible assets typically include checking, savings, brokerage accounts, mutual funds, and retirement accounts (at a 60-70% factor). Real estate equity and cryptocurrency don't count. The qualifying math is straightforward and the documentation lift is light — usually two months of statements per account.
Retire and Get a Mortgage
Asset depletion is built for retirees who left a paycheck behind but kept the savings. The 401k, IRA, and brokerage accounts that fund your retirement also qualify you for the mortgage — no need to start drawing income just to satisfy underwriting. Social Security and pension income can be combined on top to strengthen DTI.
High Net Worth Mortgage
High net worth borrowers with thin reported income (founders post-exit, investors living off long-term capital gains, family-office beneficiaries) use asset based mortgages to keep the tax strategy intact and still finance the home. Jumbo asset-depletion programs run up to $5M-$10M loan amounts when the asset base supports it.
What Is an Asset Depletion Mortgage?
An asset depletion mortgage qualifies you on the assets you already own — not the income you earn. The lender takes your total eligible assets and divides by the loan term in months. That number becomes your monthly qualifying income.
For a 30-year loan that means dividing by 360 months. For a 15-year loan, 180. The math is simple. The result is what gets used for the DTI calculation.
No job required. No W-2, no pay stubs, no tax returns. The lender doesn't care whether you ever earned a dollar last year — they care that the assets exist and you can document them.
Here is exactly how the math works on a real deal:
A borrower has $1,800,000 in eligible assets. Divide by 360 months = $5,000/month qualifying income. On a $600,000 home with 25% down, mortgage payment runs roughly $3,200/month. DTI: $3,200 / $5,000 = 64% — too high.
Adjust: $2,400,000 in assets ÷ 360 = $6,667/month income. DTI: $3,200 / $6,667 = 48% — workable.
That is the calculation. Your assets become your income. The thicker the asset base, the larger the home you qualify for. Run your numbers in the calculator above to see where you land.
The product is one of the cleanest non-QM loans on the shelf because the qualifying math is transparent and the assets are easy to verify. Two months of statements from each account and the deal moves.
Asset Utilization vs Asset Depletion vs Asset Based Mortgage — What's the Difference?
These are different names for essentially the same concept. Lenders use the terms interchangeably and there is no meaningful underwriting difference between them. The qualifying calculation is identical across all of them.
| Term | What it means |
|---|---|
| Asset depletion | Assets divided by loan term = income |
| Asset utilization | Same calculation, different lender term |
| Asset based mortgage | Broad term covering any asset-income approach |
| Asset dissipation | Another industry term for same concept |
If you're searching for any of these terms you're looking for the same loan. The calculation and qualification process is identical — only the marketing language changes from lender to lender.
What Assets Count?
Not every dollar you own qualifies. Lenders apply a haircut to certain account types and exclude others entirely. Here is the standard breakdown.
Eligible Assets
- ✓ Checking and savings accounts (100%)
- ✓ Brokerage / investment accounts (70-100%)
- ✓ 401(k) and IRA (60-70% of value)
- ✓ Vesting stock options (varies)
- ✓ Proceeds from home sale
- ✓ Trust funds (case by case)
Not Eligible
- ✗ Business assets
- ✗ Non-liquid real estate equity (usually)
- ✗ Vehicles, collectibles, jewelry
- ✗ Cryptocurrency (most lenders)
- ✗ Accounts held jointly without full access
The haircut on retirement accounts is the part most borrowers don't expect. Lenders discount 401(k) and IRA balances because of early withdrawal penalties and taxes — if you're under 59½, pulling that money out costs you 10% plus your ordinary income tax rate. A $1M IRA typically counts as $600K-$700K in eligible assets.
Brokerage accounts in your name are usually counted at 100% if they hold cash or money market funds, and 70-80% if they hold stocks or bonds (to account for market volatility).
Who Uses Asset Depletion Loans?
Four borrower profiles drive the bulk of the asset depletion volume I close. If any of these sounds like your situation, this product is worth running the numbers on.
Retirees
Retired borrowers with strong portfolios but no monthly paycheck. Social Security alone often doesn't qualify for the home they want. Assets bridge the gap between the income that conventional underwriting wants to see and the actual financial picture.
Early retirees
Retired at 55 with $3M in investments but no traditional income. Asset depletion is built for exactly this situation — your money is doing the work, but you don't have a W-2 to prove income to a conventional lender.
High net worth self-employed
Business owners who pay themselves minimally and keep assets in the business or investment accounts. Their tax returns understate them by an order of magnitude. Asset depletion qualifies them on the actual balance sheet.
Inheritors
Someone who inherited significant assets but hasn't converted them to income yet. Assets are real and verifiable — but there is no employment income to qualify on conventionally.
Asset Depletion Loan Requirements
Asset depletion requirements track the broader non-QM market. Numbers below are what most lenders want to see for a clean approval.
| Requirement | Typical Range |
|---|---|
| Minimum assets | $500,000+ typical |
| Credit score | 680+ preferred |
| Down payment | 20-30% |
| Loan amount | Up to $3M+ |
| Property type | Primary, second home, investment |
| Rate premium | 0.5-1.5% above conventional |
Asset Depletion Mortgage FAQ
Have $500k+ in assets and want to know if you qualify? Zack runs these numbers every week — free, 10 minutes, no credit pull.
Asset Utilization Loans by State
Licensed in 48 states. Pick yours for state-specific asset utilization loan details.
Talk to Zack
Free review. No credit pull. Same-day callback.