If you're rich on paper but light on income, qualifying for a traditional mortgage can be frustrating. That’s where asset depletion loans come in.
This unique financing solution helps investors qualify for a loan based on their liquid assets—not their W-2 income, tax returns, or cash flow from a job.
It’s a powerful tool for retirees, business owners, self-employed professionals, and anyone who has significant cash, stocks, or retirement savings but doesn't show high reportable income.
Let’s break down how asset depletion loans work, who they’re for, and how real estate investors can use them to buy or refinance properties without income hurdles.
What Is an Asset Depletion Loan?
An asset depletion loan—also called an asset-based mortgage—allows borrowers to qualify for real estate financing using the value of their liquid assets instead of traditional income.
The lender calculates a monthly income figure by dividing your total assets over a set amortization period—usually 120 to 360 months.
🧮 Basic Formula:
Eligible Assets ÷ Loan Term (in months) = Qualifying Monthly Income
