You’ve worked hard and saved well. Maybe you’re retired, semi-retired, or simply at a point in life where you don’t draw a traditional paycheck anymore. That doesn’t mean you can’t qualify for a mortgage — it just means you need a lender who knows how to look at the full picture.
Asset Depletion Loans — sometimes called Asset Dissipation or Asset Utilization loans — allow you to convert your liquid assets into a qualifying monthly income for mortgage purposes. You don’t have to sell a single investment. You just need to prove they’re there.
The concept is simple: a lender divides your total eligible liquid assets by the remaining loan term (in months) to arrive at a theoretical monthly income. That income is then used to qualify you for the loan — either alone or combined with other income sources.
For example, if you have $1,500,000 in eligible assets and are applying for a 30-year loan (360 months), your qualifying income would be calculated at roughly $4,166 per month. The exact formula varies by lender and program.
Most Asset Depletion programs accept:
Generally, assets that are tied up — like equity in real estate, business ownership interests, or illiquid investments — do not count toward the calculation.
Most lenders apply a discount to retirement account balances — typically 60% to 70% — to account for potential early withdrawal taxes and penalties if you’re under 59½. This is normal and still allows most borrowers with substantial retirement savings to qualify. If you’re over 59½, the discount may be reduced or eliminated.
The key is working with a broker like Mark Stillman who has access to multiple wholesale lenders and understands how each one calculates asset income. Small differences in methodology can significantly affect your qualifying amount.
