Asset Depletion Loans are designed for borrowers who have significant liquid assets but limited or irregular income. Instead of relying on W-2 wages or self-employment income, lenders use eligible assets to determine the borrower’s ability to repay the loan.

This option is commonly used by retirees, investors, business owners, and high-net-worth individuals who may not receive steady paychecks but maintain strong financial reserves.

Eligible assets may include:

• Bank accounts
• Investment accounts
• Retirement funds (subject to lender guidelines)

Rather than verifying monthly income, lenders calculate a theoretical income amount based on a portion of the borrower’s verified assets and use that figure for qualification purposes.

How It Works

1. Asset Review
   The lender reviews eligible liquid assets and applies program-specific adjustments.
2. Income Calculation
   A portion of the assets is converted into an income equivalent to determine loan eligibility.
3. Loan Qualification
   Approval is based on credit, assets, down payment, and overall financial profile—not employment income.
4. Loan Structure
   Loan terms, interest rate, and down payment requirements vary by lender and asset type.

Best For

• Retirees
• Asset-rich, income-light borrowers
• Investors with significant reserves
• Business owners between income cycles

Asset Depletion Loans provide flexibility for borrowers whose financial strength doesn’t fit traditional income documentation but who have the assets to support homeownership.