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Asset Depletion Loans
You've built wealth. Now use it to buy a home—without needing a paycheck to qualify. Asset depletion loans let you turn your savings, investments, and retirement accounts into qualifying income.
Who Is This Loan For?
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✅ Retirees with significant savings but limited monthly income
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✅ High-net-worth individuals who live off investments
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✅ Early retirees or semi-retired professionals
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✅ Real estate investors with large portfolios but low W-2 income
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✅ Business owners who pay themselves minimally and keep wealth in assets
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✅ Anyone with substantial assets who doesn't fit traditional income boxes
What Is an Asset Depletion Loan?
Traditional mortgages require you to prove monthly income—W-2s, pay stubs, tax returns. But what if your wealth isn't in a paycheck? What if it's in a brokerage account, a retirement fund, or a savings account?
An asset depletion loan solves this by converting your assets into a "qualifying income" that lenders can use to approve your mortgage.
Here's the concept:
Your eligible assets are divided over the loan term to create a monthly income figure.
For example, if you have $1,200,000 in eligible assets and you're applying for a 30-year mortgage:
$1,200,000 ÷ 360 months = $3,333/month in qualifying income
That $3,333/month is what we use to qualify you—no W-2s, no employer verification, no tax returns showing traditional income.
At Team Malik, we specialize in finding the right asset depletion program for your situation. We work as both a direct lender and a broker, giving us access to multiple programs with different asset calculation methods. Licensed in Florida, New Jersey, and Pennsylvania.
How Asset Depletion Works — Step by Step
Step 1 — We Add Up Your Eligible Assets
Not all assets count equally. Here's how they're typically categorized:
Step 2 — We Subtract Required Reserves
The lender deducts:
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Your down payment amount
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Closing costs
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Any required cash reserves (usually 6–12 months of payments)
Step 3 — We Divide by the Loan Term
The remaining assets are divided by the number of months in your loan (typically 360 for a 30-year mortgage). The result is your monthly qualifying income.
Step 4 — We Apply Standard DTI Guidelines
Your new "income" is used to calculate your debt-to-income ratio just like any other loan. Standard DTI limits (43–50%) apply.
Real-World Example
Let's say you're a retiree in Boca Raton looking to buy a $500,000 condo:
With $3,678/month in qualifying income, you'd comfortably qualify for the mortgage payment on a $375,000 loan (after 25% down). No paycheck needed.
Asset Depletion Loan Requirements
Down Payment
20–25% is typical. The exact amount depends on the program, property type, and your overall asset picture. Stronger profiles may qualify at the lower end.
Eligible Assets
You need enough liquid or semi-liquid assets to cover:
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The down payment
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Closing costs
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Cash reserves (6–12 months)
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AND generate sufficient monthly income after those deductions
Credit Score
Varies by program—typically 680+ for the best options. Some programs accept 660+.
Income Verification
None in the traditional sense. No W-2s, no pay stubs, no employer verification. Your assets ARE your income. You'll need to provide account statements (typically 2–3 months) to document your balances.
Property Types
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Primary residences
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Second homes
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Investment properties (some programs)
Asset Depletion vs. Other Loan Types
If you have the assets but not the traditional income, this is your program. If you have strong bank deposits from self-employment, look at our Bank Statement Loan. If you have steady W-2 income, Conventional is probably the best fit.
The Asset Depletion Loan Process
Step 1 — Asset Review
Send us your most recent 2–3 months of account statements (brokerage, retirement, savings, etc.). We'll calculate your qualifying income and tell you exactly what you can afford. Turnaround: 1–2 business days.
Step 2 — Pre-Approval
Once we verify your assets and run credit, you'll receive a pre-approval letter. This shows sellers you're a serious, qualified buyer—even without traditional income.
Step 3 — Home Search
Find your property. Whether it's a retirement home in Florida, a second home in the Jersey Shore, or an investment property in Philadelphia—we've got you covered.
Step 4 — Appraisal & Underwriting
Standard appraisal to confirm value. Underwriting reviews your asset documentation. Less back-and-forth than a traditional loan since there's no employer or income verification. Timeline: 2–3 weeks.
Step 5 — Closing
Sign, pay closing costs, get the keys. Total timeline: 25–40 days.
Frequently Asked Questions
Do I need any income at all?
No traditional income is required. Your assets are converted into qualifying income. However, if you DO have some income (Social Security, pension, dividends), we can combine it with asset depletion to strengthen your file.
What types of assets qualify?
Liquid and semi-liquid assets: checking, savings, money market, stocks, bonds, mutual funds, ETFs, and retirement accounts (at a discounted value). Real estate equity, business assets, and personal property generally don't qualify.
Why is the down payment 20–25%?
Asset depletion loans carry more risk for lenders since there's no traditional income stream. The higher down payment offsets that risk and typically gets you a better rate.
Can I use retirement accounts?
Yes, but they're usually counted at 60–70% of their value to account for taxes and potential early withdrawal penalties. The exact discount depends on your age and the account type.
What if my assets are in a trust?
Many programs accept assets held in revocable living trusts. Irrevocable trusts are more complex—we'll need to review the trust documents. Let's discuss your specific situation.
Can I combine asset depletion with other income?
Absolutely. If you have Social Security, a pension, rental income, or any other documented income, we can add it to your asset-derived income for a stronger qualification. Many of our retiree clients use this combined approach.
Is this the same as a "no-income" loan?
Not exactly. You ARE proving income—it's just derived from your assets instead of an employer. The lender still verifies your assets are real, sufficient, and documented. This is a fully underwritten, legitimate mortgage program.
What's the maximum loan amount?
There's no hard cap—it depends on your assets. If your assets support a $2 million qualifying income calculation, you can pursue a $2 million property. We'll run the numbers for your specific situation.
Explore Other Loan Options
FHA Loans → Low down payment and flexible credit. Great for first-time buyers.
DSCR Loans → Qualify on rental income. Built for investors.
Bank Statement Loans → Self-employed? Use your deposits to qualify.