Asset Depletion Loan

Overview

Asset depletion (sometimes called asset-utilization or asset-based) loans calculate qualifying "income" by dividing your eligible liquid assets by a set number of months — often 60, 84, or 120 — to produce a monthly figure used in your debt-to-income ratio. No actual liquidation is required; the assets simply need to exist and be verified.

It's an excellent fit for retirees, high-net-worth borrowers, and anyone who has built substantial liquidity but doesn't want to rely on traditional income documentation. Eligible assets typically include checking, savings, brokerage, and certain retirement accounts.

Who it's for

Retirees with significant savings or investment accounts
High-net-worth borrowers with non-traditional income
Recently exited business owners
Buyers who could pay cash but want financing for tax or strategic reasons

What's typically reviewed

Verified liquid assets (checking, savings, brokerage, qualifying retirement)
Credit profile
Asset seasoning (assets must have a documented history)
Down payment from eligible sources
Property and program-specific reserves

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

Other programs you might be looking for