Strong W-2 → conventional. Self-employed w/ cash flow → bank statement / P&L. Investment property → DSCR. Retired / income-light, asset-rich → asset depletion. 62+, want to tap equity → reverse.
The side-by-side
| Program | Qualifies on | Best for | Rate |
|---|---|---|---|
| Asset Depletion | Liquid assets | Retired / income-light, asset-rich | ~0.5–2% over conv. |
| Conventional | W-2 income | Documented salary | Lowest |
| Bank Statement | Deposits | Self-employed cash flow | ~0.75–2% over conv. |
| DSCR | Property rent | Investment property | Higher |
| Reverse | Home equity (62+) | Tapping equity, no payment | Varies |
Head-to-head matchups
Asset Depletion vs Conventional
Conventional is cheaper — use it if you have strong W-2 income. Asset depletion is for the asset-rich, income-light.
Asset Depletion vs Bank Statement / P&L
Bank statement/P&L = active business cash flow; asset depletion = balance sheet (retired / not working).
Asset Depletion vs DSCR
DSCR qualifies the property on rent (investment only); asset depletion qualifies you and works for a primary residence.
Asset Depletion vs Reverse
Reverse (62+) taps equity, no payment, but reduces equity; asset depletion is a forward loan that preserves your portfolio.
The decision framework
Do you have strong W-2 income?
Yes → conventional. No → continue.
Is it an investment property?
Yes → DSCR on rent. No → continue.
Do you actively run a profitable business?
Yes → bank statement / P&L. No → continue.
Asset-rich, income-light?
Asset depletion — stacked with any other income you have.
Asset depletion comparison FAQs
Asset depletion vs conventional?
Conventional cheaper w/ W-2 income; asset depletion for asset-rich, income-light.
Vs bank statement / P&L?
Those need active business cash flow; asset depletion uses the balance sheet.
Vs DSCR?
DSCR = property rent, investment only; asset depletion = you, works for primary.
Vs reverse mortgage?
Reverse taps equity (62+) but reduces it; asset depletion preserves your portfolio.
Can I combine methods?
Yes — stacking assets with SS/pension/dividends/P&L often qualifies for the most.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.