Asset Depletion Mortgage Qualification in 2026: How Retirees and High-Net-Worth Borrowers Qualify

Asset depletion is an alternative income calculation method that converts liquid assets into a qualifying monthly income stream. It exists because some borrowers -- retirees, investors who live off portfolio distributions, and high-net-worth individuals who have not yet converted assets to income -- have substantial financial capacity that does not appear on a pay stub or tax return. Standard income documentation would fail these borrowers; asset depletion accurately reflects their ability to repay.

How Asset Depletion Is Calculated

The standard formula divides eligible liquid assets by a term to produce a monthly income figure. Most lenders use 60 months as the divisor. A borrower with $1,500,000 in eligible assets divided by 60 produces $25,000 per month in qualifying income. This income is added to any other documented income (Social Security, pension, rental income) to meet DTI requirements. Some lenders use longer divisors of 84 or 120 months, which produces lower monthly income but may still be sufficient for the requested loan amount.

What Assets Count

• ✦Checking and savings accounts: 100% of the balance is eligible
• ✦Money market accounts and CDs: 100% eligible if liquid or maturing before closing
• ✦Investment accounts (brokerage, mutual funds): 70% of the account value is typically used to account for market risk
• ✦Retirement accounts (IRA, 401(k)): 60-70% used if the borrower is not yet at withdrawal age; 70-100% if the borrower is of retirement age
• ✦Business accounts: may be excluded unless the borrower has documented access to the funds
• ✦Crypto assets: most lenders exclude; a small number accept with substantial discounts

Lenders with Asset Depletion Programs in 2026

• ✦Angel Oak Mortgage: asset qualifier program; primary and investment
• ✦Acra Lending: asset depletion on non-QM programs; 620+ FICO
• ✦Griffin Funding: asset-based lending focused on high-net-worth borrowers; up to $5M
• ✦LendSure Mortgage Finance: asset depletion; flexible on asset types
• ✦Change Wholesale: 60-month divisor; primary, second home, and investment
• ✦New American Funding: asset qualifier for high-balance and jumbo scenarios
• ✦Verus Mortgage Capital: asset qualifier on Prime Ascent up to $5M

Who Benefits Most From Asset Depletion

The ideal asset depletion borrower has significant liquid wealth but limited documented income. Retirees who have not started Social Security or pension distributions and live off portfolio withdrawals are a primary use case. Business owners who take minimal salary distributions but have substantial business or personal assets qualify well under this method. High-net-worth borrowers who have recently sold a company or investment and have not yet reinvested into income-producing assets are another strong candidate.