Asset depletion loans. Your savings, read as income.
An asset depletion loan is a non-QM mortgage that qualifies you on your liquid assets rather than a paycheck. The lender takes your eligible savings and investments, sets aside what you need to close, and spreads the rest over a set number of months to create a monthly qualifying income. It can suit retirees and high-net-worth borrowers whose income on paper is thin.
Some borrowers can clearly afford a mortgage but don't have the pay stubs to prove it: a retiree with a healthy portfolio, an owner who just sold a business, an investor who lives on returns. Asset depletion reads the balance sheet instead of the paycheck. Tell us about your assets and the property, and we structure the file and place it across our 40+ lender network.
Who it's for
A fit if you're…
Retired, with savings and investments but limited monthly income on paper
A business owner after a sale or other liquidity event
Living off investment returns rather than a salary
High net worth, with income that is irregular or hard to document
Self-employed with strong assets but tax returns that understate what you can afford
Assets become income
Eligible liquid assets are converted into a monthly figure the lender can qualify you on.
Not built on a paycheck
Pay stubs and W-2s aren't the basis of the file, which suits retirees and investors.
Keep your accounts invested
It's a qualifying method, not a requirement to draw the money down.
Can combine with other income
Some programs may let you add Social Security, pension or other documented income.
Purchase or refinance
Available on purchases and refinances, depending on the program and lender.
Broker, not lender
8Twelve arranges the loan; a lender partner makes it. Asset rules vary by lender, so placement matters.
How an asset depletion loan works
Instead of starting with your income, the lender starts with your assets. Lenders typically total your eligible liquid assets, subtract the down payment, closing costs and any reserves they require, and divide the remainder over a set number of months that the program defines. The result is treated as monthly qualifying income, and from there the file is underwritten much like any other mortgage: credit, the property and your overall ability to repay are all reviewed.
Eligible liquid assets are documented with recent statements
Funds for the down payment, closing costs and reserves are typically set aside first
The remaining balance is spread over the program's set number of months
That monthly figure is used to qualify, alone or alongside other documented income
The example below shows the arithmetic with hypothetical round numbers. The number of months is set by each program and lender; 100 is used here only to keep the math easy to follow.
Illustrative example only
Hypothetical figures, chosen to show the math. They don't reflect any lender's guideline, rate or file; your eligible assets and the divisor used will differ.
Hypothetical asset depletion income calculation
Documented liquid assets
$1,500,000
Less down payment, closing costs and reserves
-$300,000
Assets left for the calculation
$1,200,000
Divided over a hypothetical 100 months
$12,000 / month
On paper, this borrower may show little or no salary. Read through their assets, they show a monthly qualifying figure the lender can underwrite.
For illustration only. Not a commitment to lend, a rate lock or an offer of credit. Terms vary by lender, by property and by file.
Lenders focus on assets that are liquid and well documented. Each lender sets its own list and its own treatment of each account type, which is one reason we compare programs before recommending one.
Checking, savings and money market accounts
Brokerage accounts holding stocks, bonds or mutual funds
Retirement accounts on some programs, which may count at less than their full value
Assets that can't easily be turned into cash, such as real estate or business equity, generally don't count
Large recent deposits usually need a paper trail showing where the money came from
Pick the program by how your money shows up. If it arrives as regular deposits into a business or personal account, bank statement loans usually fit better. If you have 1099s or an accountant's profit and loss statement, look at a no income verification mortgage. If you're buying a rental and the rent should carry the payment, a DSCR loan doesn't use your personal income at all. Asset depletion fits when the savings and investments are the strongest part of the file. Every option is laid out on our non-QM home loans page, and larger loan amounts are covered on jumbo loans.
Asset depletion changes how income is measured, not whether the file is underwritten. Lenders typically review the same core items as on any mortgage, and requirements differ from one lender to the next.
Credit history and score
Recent statements for every account being used
Funds for the down payment, closing costs and reserves
Pricing on non-QM loans is generally higher than on conventional loans with the same leverage and credit.
The way assets are counted, and the number of months used, varies by lender, so the same portfolio can produce different qualifying figures.
If you have documented income that already supports the loan you need, a conventional or full-documentation loan may cost less. We will tell you if that's the case.
Talk to your financial or tax advisor about how a mortgage fits your wider plan; we can't give investment or tax advice.
Terms are available across our lender network and vary by file. Nothing here is a commitment to lend.
FAQ
Questions buyers actually ask
What is an asset depletion loan?+
An asset depletion loan is a non-QM mortgage where the lender turns your eligible liquid assets into a monthly qualifying income figure, instead of relying only on pay stubs or tax returns. You may also see it called an asset utilization or asset-based loan. Credit, the property and your ability to repay are still reviewed.
How is asset depletion income calculated?+
Lenders typically start with your eligible liquid assets, subtract what you need for the down payment, closing costs and required reserves, and divide what is left over a set number of months defined by the program. The result is treated as monthly income for qualifying. The exact method varies by lender.
Which assets count for an asset depletion loan?+
Lenders typically look at liquid, documented assets such as checking and savings accounts, brokerage accounts and, on some programs, retirement accounts. Some account types may count at less than their full value. Assets that can't easily be turned into cash, such as real estate or business equity, generally don't count. Each lender sets its own list.
Do I have to spend down my assets?+
Generally, no. Asset depletion is a way of measuring your ability to repay, not a requirement to draw the money down. Your accounts stay invested, and lenders will want to see them documented with statements.
Can retirees get an asset depletion loan?+
Yes, it is one of the most common uses. Retirees with significant savings but modest monthly income on paper can use their assets to qualify, and some programs may let you combine asset-based income with Social Security, pension or other documented income.
Do I need a job to qualify?+
Not necessarily. Because the lender reads your assets rather than a paycheck, asset depletion can work for borrowers who are retired, between ventures, or living off investments. Credit, assets and the property are all still reviewed, and each lender sets its own requirements.
What are asset depletion loan rates?+
We do not publish a rate. Pricing is assembled from your file and moves with the market daily, and non-QM loans generally price higher than conventional loans. Credit, leverage, occupancy, property type, loan size and the lender all affect it, and a fit check shows real numbers for your scenario.
Asset depletion, bank statement or DSCR: which fits?+
Match the program to how your money shows up. Large savings and investments with little regular income points to asset depletion. Steady deposits into a business or personal account points to a bank statement loan. A rental whose rent should carry the mortgage points to a DSCR loan, which doesn't use your personal income at all.
See if your assets can qualify you.
A 3-minute application. A soft-credit rate estimate. We structure and place your file with the lender that fits it.
