Asset depletion loans are specialty mortgage programs that allow borrowers to qualify using liquid assets rather than traditional employment income. Instead of W-2s or tax returns, qualification is based on your existing savings, investments, retirement accounts, and other liquid assets — divided over a set period to establish a monthly qualifying "income." This is ideal for retirees, high-net-worth individuals, and others with substantial assets but limited traditional income documentation. Contact Q Home Loans to discuss your asset portfolio.
If you've saved diligently but no longer have W-2 income, asset depletion lets you qualify using what you've built.
You don't need to liquidate assets — they're simply used to calculate qualifying income.
High-net-worth borrowers can finance luxury properties and second homes without employment income.
IRAs and 401(k)s (with a haircut for taxes) can be included in asset calculations.
No need to document employment history or business income — just asset statements.
Asset depletion can be used for investment property financing alongside DSCR income.
Asset depletion loans work by converting your liquid assets into a calculated monthly income figure. The lender takes your total eligible assets, subtracts any required down payment and closing costs, then divides the remaining amount by a set number of months (typically 360 for a 30-year loan). This calculated monthly figure becomes your qualifying income. For example, if you have $1,000,000 in eligible assets after down payment, the lender would calculate $1,000,000 ÷ 360 = $2,778 per month in qualifying income. This income is then used to determine your debt-to-income ratio and loan eligibility, just like traditional income verification.
You've built significant wealth but no longer have W-2 income. Asset depletion converts your savings into qualifying income.
Wealthy borrowers who prefer to keep assets invested rather than making large down payments can use asset depletion to qualify.
Retired before traditional retirement age? Asset depletion bridges the gap between early retirement and Social Security or pension income.
Combine asset depletion with rental income or DSCR qualification for maximum flexibility.
Get answers to common questions about asset depletion loans.
Explore other financing options that may fit your situation.
Q Home Loans specializes in asset depletion loans for homebuyers and investors in Washington. Get expert guidance and competitive rates.