An Asset Depletion Loan (also called an Asset Dissipation Loan) is a mortgage program that lets you qualify based on your liquid assets instead of traditional income.
How It Works
- The lender looks at your total qualified assets (cash, stocks, bonds, retirement accounts, etc.).
- They use a formula to “convert” those assets into a monthly income stream — usually by dividing them over a set term (e.g., 240 months for a 20-year term).
- That calculated income is then used to determine if you can afford the mortgage, even if you don’t have a steady paycheck.
Example:
If you have $2,400,000 in assets:
2,400,000÷240 months=10,000 qualifying monthly income2,400,000 \div 240 \text{ months} = 10,000 \text{ qualifying monthly income}2,400,000÷240 months=10,000 qualifying monthly income
Benefits
- No Need for Employment Income
Perfect for retirees, early retirees, or people living off investments. - Ideal for High-Asset, Low-Income Borrowers
Many people have substantial savings but little or no taxable income. - Use a Wide Range of Assets
Cash, brokerage accounts, vested stock options, certain retirement accounts, and even some trust funds may qualify. - Flexible Loan Qualification
Can be combined with other income sources if desired. - Privacy & Less Paperwork