Most-asked: qualify on assets, not income · formula = (assets − down − closing − reserves) ÷ divisor · need ~$500K–$1M+ · 640–700 credit · 20%+ down · no liquidation · closes in ~21–30 days. Details below.
The basics & the formula
What is an asset depletion loan?
A non-QM mortgage that qualifies you on liquid assets instead of income — no W-2s, pay stubs, or tax returns. Also called asset qualifier, asset dissipation, or assets-as-income.
How is the qualifying income calculated?
(Eligible assets − down − closing − reserves) ÷ depletion period. See the calculator.
What is the divisor and why does it matter?
The months your assets are spread across. Shorter = more income = bigger loan. 60–120 (non-QM) vs 360 (agency). The single biggest variable.
Do I actually withdraw the money?
No — it's a calculation only. You pay the mortgage from whatever sources you choose.
Is it a real, regulated loan?
Yes — fully regulated. The lender verifies ability-to-repay through assets instead of employment.
Assets & qualifying
How much in assets do I need?
Usually ~$500K–$1M+ eligible, after down & closing. Calculate backward from the income you need.
Which assets count?
Cash/CDs/money market ~100%; stocks/bonds/funds ~70%; retirement 60–80% by age. Full haircut table →
Do retirement accounts count?
Yes — 70–80% at 59½+, 60–70% if younger (early-withdrawal penalty). Roth often ~100%.
What's excluded?
Real estate equity, business-owned assets, foreign assets, personal property, and crypto.
Do I have to sell my investments?
No — your portfolio stays invested. A later market move doesn't change a closed loan.
Can I combine assets with other income?
Yes — Social Security, pension, part-time work, dividends. Multi-source files often price better.
Credit, down payment & rates
What credit score do I need?
640–700 typical. Higher unlocks better rate & LTV.
What down payment is required?
20%+ (non-QM). More down improves pricing.
What are the rates?
~0.5–2% over conventional (non-QM portfolio). Rates →
What about reserves?
6–12 months of housing payments — but the same assets often satisfy reserves too.
Does age affect my loan?
Yes — retirement haircuts ease at 59½+, and agency LTV rises to 80% at 62+.
Occupancy, process & timing
Can I use it for investment property?
Often yes (non-QM); agency-style is more limited.
How long to close?
~21–30 days with clean, complete asset statements.
What documents do I need?
2–3 months of statements (all pages), ownership proof, retirement distribution status. Requirements →
Do you serve all of California?
Yes — all 58 counties, from Newport Beach & Marina del Rey.
Is the calculated income taxed?
No — it's a qualification figure only; you're not withdrawing. Consult a tax pro on any actual withdrawals.
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.