Asset depletion mortgages are a unique solution for borrowers who have substantial assets but may not show consistent income on paper. Instead of relying on traditional income documentation, these loans calculate income based on the borrower’s assets—such as cash reserves, retirement accounts, or investment portfolios.
Asset depletion loans fall under the non-QM umbrella, making them a powerful tool for brokers looking to expand their product offerings. For another popular non-QM option, see our guide to top bank statement lenders, top DSCR lenders or top ITIN lenders.
Real-World Borrower Scenarios
Here are examples of borrower profiles that may be a great match for asset depletion loans:
The early retiree purchasing a second home
A borrower recently retired at 55 and has no W-2 income. They have over $2 million in retirement and investment accounts and want to purchase a vacation home.
Why Asset Depletion is a good fit: Even without employment income, the borrower’s assets can be used to calculate qualifying income.
The high-net-worth entrepreneur between ventures
A startup founder recently exited a business and is taking time before launching their next project. Their liquid net worth exceeds $3 million, but they have no current income stream.
Why Asset Depletion is a good fit: The borrower’s asset base is strong enough to meet lender requirements, even in the absence of job-based income.
Top Lenders Offering Asset Depletion Loans Through Morty
| Lender | Website | Highlights |
|---|---|---|
| Carrington | carringtonwholesale.com | Offers asset depletion and utilization options. |
| JMAC | jmaclending.com | Provides both depletion and utilization methods, plus strong non-QM variety. |
| NewFi | newfiwholesale.com | Known for flexible asset-based lending. |
| Angel Oak | angeloakms.com | Offers asset depletion and supports foreign national programs. |
| Orion | orionlending.com | Provides asset depletion, P&L, ITIN, and more. |
| BluePoint | bluepointmtg.com | Simple overlays and product access. |
| Champion Funding | championwholesale.com | Strong foreign national and asset utilization options. |
| Ardri | ardri.ai | Offers asset-based lending and advanced scenario support. |
What Underwriters Look for in Asset Depletion Loans
Underwriters focus on the borrower’s liquid and retirement assets to estimate a monthly income figure. Different lenders may have slightly different formulas, but the basics typically include:
- Eligible assets (e.g., checking, savings, 401(k), brokerage accounts)
- Discount factors applied to retirement accounts (e.g., 70% of value)
- A standard amortization period (e.g., divide by 360 months)
For example, a borrower with $1,000,000 in eligible assets might qualify with $2,777/month in calculated income ($1,000,000 ÷ 360). Lenders will verify these accounts, assess accessibility of funds, and ensure they’re not already being used for reserves or other obligations.
It’s also important to confirm that the borrower won’t rely on future income or asset sales to repay the loan—this helps ensure long-term repayment ability and avoids speculative risk.
Why Brokers Are Key in Asset Depletion Lending
Retail lenders typically don’t offer asset depletion loans. These products are generally reserved for wholesale channels, giving brokers a distinct edge. Through Morty, brokers can access multiple asset-based lenders on one platform, expanding the options available to high-net-worth or non-traditional borrowers.
Brokers also act as strategic advisors to help clients evaluate and choose the right loan product for their financial situation—especially important in cases where non-QM options require creative structuring and strong documentation.
FAQ
Are asset depletion loans only available to high-net-worth borrowers?
While these loans are common among wealthier clients, eligibility is based on verifiable assets and program guidelines—not net worth alone.
Can a borrower qualify if their assets are in retirement accounts?
Yes, but retirement funds are often subject to discounting (e.g., 70% of value) to account for withdrawal restrictions or penalties.
Do lenders allow asset depletion loans for investment properties?
Many lenders do, though some restrictions may apply depending on the property type and loan structure.
Morty Advantage for Asset Depletion Loans
With Morty, brokers can:
- Access top asset depletion lenders through a single platform
- Use our Loan Origination System and Point-of-Sale to manage and submit files
- Lean on our Processing & Fulfillment support to handle documentation
- Match borrower scenarios with the right lender using Rosey AI
Want to offer asset depletion loans? Talk to sales to get started.
