Retirees and pre-retirees
Strong balances, modest reportable income, and pensions or Social Security that alone will not support the payment.
Non-QM · Asset qualification
Qualify from your assets, not a paycheck.
Asset depletion programs convert eligible liquid assets into a qualifying monthly income figure — built for retirees, exited business owners and investors with balance sheets larger than their tax returns.
How it works.
Asset depletion — sometimes called asset utilization or asset-based qualifying — divides eligible liquid assets by a fixed number of months to produce a monthly income figure for underwriting. Nothing is liquidated or pledged; the calculation simply demonstrates capacity to repay from assets rather than from wages.
Programs differ substantially in how they run the math. Some divide by 60, 84, 120 or 240 months; some count 100% of cash and a discounted percentage of retirement or brokerage balances; some require the borrower to be past a retirement age before counting IRAs at full value. Those differences can change the qualifying figure by thousands of dollars a month on identical statements, which is why the program choice matters as much as the file.
In Texas this shows up most often with retirees relocating to lower-tax counties, borrowers who sold a business, 1031 investors between properties, and high-net-worth buyers whose reportable income is deliberately low. It also pairs well with a bank statement or DSCR structure when only part of the picture is asset-driven.
Who it fits
Where this program does the most work.
Exited business owners
Sale proceeds sitting in cash or brokerage with no current W-2 or self-employment income stream to document.
Investors between assets
Liquid from a sale or 1031 timing gap where employment income was never the qualifying story.
Low-reportable-income high-net-worth buyers
Returns show little taxable income by design, while liquidity is substantial and verifiable.
Guideline snapshot
What asset-based files typically look like.
- Qualifying method
- Eligible assets divided by a set number of months — commonly 60, 84, 120 or 240 depending on program
- Eligible accounts
- Typically checking, savings, money market, brokerage and in many cases retirement accounts
- Discount factors
- Non-cash accounts are often counted at roughly 70%–90%; retirement accounts may be further restricted by age
- Seasoning and sourcing
- Statements generally required for 2–3 months, with large deposits sourced
- Purchase LTV
- Often up to 70%–80% for stronger credit and reserve profiles
- Credit score
- Frequently 660–700 minimum; best pricing usually 720+
- Occupancy
- Primary, second home and investment property allowed on many programs
General ranges shown for orientation only. Guidelines, calculation methods, documentation, property eligibility, reserves, rates and terms vary by lender and program and are subject to change. This is not a pre-qualification, approval or commitment to lend.
Asset Depletion Loans Texas FAQ
Questions borrowers ask.
Do I have to sell or pledge my assets?
No. Asset depletion is a calculation method used to establish qualifying income; the accounts are verified but not liquidated or pledged. Program rules vary by lender.
How is the monthly income figure calculated?
Eligible assets — often discounted by account type — are divided by a set number of months defined by the program, commonly 60 to 240. The divisor and discount factors vary by lender and program and change the qualifying figure significantly.
Can retirement accounts be used?
Many programs include IRA, 401(k) and similar accounts, sometimes at a reduced percentage or only once the borrower reaches an age at which distributions are penalty-free. Eligibility varies by lender and program.
Can I combine asset depletion with other income?
Often yes. Many programs allow the calculated asset figure to be added to documented Social Security, pension, rental, 1099 or bank statement income. Combination rules vary by lender and program.
Is this the same as a no-income-verification loan?
No. Assets, credit and the property are fully documented and underwritten; only the income source differs from traditional wage documentation.
Does it work for investment property in Texas?
Sometimes, though a DSCR loan that qualifies on the property's rent is frequently the cleaner structure for a rental. We compare both.
Not sure which documentation path fits? That is the conversation.
Financing Provided Through
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