MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer
Pros: qualify on wealth (no income docs), no liquidation, portfolio stays invested, flexible occupancy, combinable with other income. Cons: high asset bar (~$500K–$1M+), 20%+ down, rate ~0.5–2% over conventional, fewer lenders. Best when you're asset-rich and income-light.
The pros
✓ Advantages
- Qualify on wealth, not wages — no W-2s, pay stubs, or tax returns
- No liquidation — portfolio stays invested & compounding
- Market-proof once closed — a later downturn doesn't change your loan
- Flexible occupancy — primary, second, or investment
- Combinable — add Social Security, pension, dividends to boost qualifying income
- Fast & clear — mathematical qualification, closes in ~21–30 days
The cons
✗ Drawbacks
- High asset requirement — ~$500K–$1M+ eligible, after down & closing
- Larger down payment — 20%+ (non-QM)
- Higher rate — ~0.5–2% over conventional
- Asset haircuts — stocks ~70%, retirement discounted by age
- Fewer lenders — specialty market; shopping matters
- Documentation-intensive — every statement page, ownership proof
The move that changes the math — the divisor and the hybrid: Two levers decide whether an asset depletion loan feels generous or tight. First, the divisor: the same portfolio qualifies for far more at a 60–120-month depletion period than at 360, so the right program choice can double or triple your qualifying income. Second, the hybrid: you rarely have zero income — most asset-rich borrowers have some Social Security, a pension, dividends, or part-time work. Layering that real income on top of your asset figure often lifts you over the line with room to spare, and lenders view multi-source files favorably. The borrowers who get the best outcomes don't treat asset depletion as pure-assets-or-nothing; they combine the strongest divisor with every dollar of real income. We build that stacked file for you. Optimize my qualification →
How it compares to the alternatives
| Program | Best when |
|---|---|
| Asset Depletion | Retired / income-light, asset-rich |
| Conventional | You have strong W-2 income (lower cost) |
| Bank Statement | Self-employed w/ documentable deposits |
| DSCR | Investment property qualifies on rent |
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 from offices in Newport Beach and Marina del Rey.