Question 1

What is asset depletion and how does it work?

Accepted Answer

Asset depletion calculates your qualifying income by dividing your liquid assets by the loan term (typically 360 months for a 30-year loan). For example, $3.6M in assets ÷ 360 months = $10,000/month qualifying income. This allows you to qualify without traditional income documentation like W-2s or tax returns.

Question 2

What types of assets qualify?

Accepted Answer

Qualifying assets include: stocks, bonds, mutual funds, retirement accounts (401k, IRA with 30% haircut), CDs, money market accounts, and cash/savings. Non-qualifying assets: real estate equity, business ownership, cryptocurrency (most lenders), collectibles, and illiquid investments. Assets must be verifiable through recent statements.

Question 3

Do I need to liquidate my assets to qualify?

Accepted Answer

No. Asset depletion loans calculate income based on your assets, but you don't need to sell or liquidate them. The assets remain invested and growing. You only need to show proof of ownership through account statements. This preserves your investment strategy and tax efficiency.

Question 4

What are the loan limits for high-net-worth borrowers?

Accepted Answer

Jumbo loans typically range from $766,550 (2024 conforming limit) up to $5M+ for qualified borrowers. Some lenders offer up to $10M-$20M for ultra-high-net-worth individuals with substantial assets. Loan limits depend on property location, asset levels, credit profile, and down payment.

Question 5

How much down payment is required?

Accepted Answer

Minimum down payment for asset depletion loans is typically 20-30% depending on loan amount and asset levels. Larger loans ($2M+) may require 25-30% down. Higher down payments (35-40%) can help secure better rates and terms. Some programs accept as low as 15% down for exceptional borrowers.

Question 6

Are interest rates higher for asset-based loans?

Accepted Answer

Asset depletion loan rates are typically 0.25-0.75% higher than conventional jumbo loans due to alternative documentation. However, they're competitive with other NON-QM products. Your rate depends on credit score (740+ gets best rates), down payment, loan amount, and total asset levels. Strong asset position can offset rate premium.

Question 7

Can retirees qualify using retirement accounts?

Accepted Answer

Yes. Retirees can use 401(k), IRA, pension, and annuity accounts for asset depletion. Retirement accounts typically have a 30% haircut applied (only 70% of value counts) to account for early withdrawal penalties and taxes. Social Security and pension income can be combined with asset depletion for stronger qualification.

Question 8

What credit score is required?

Accepted Answer

Minimum credit score is typically 680 for asset depletion loans, but 720+ qualifies for better rates and terms. A 740+ score is ideal for jumbo financing. High-net-worth borrowers with lower scores (660-680) may still qualify with larger down payments (30-35%) and substantial asset reserves.

Question 9

Can I use this for investment properties?

Accepted Answer

Yes. Asset depletion loans are available for primary residences, second homes, and investment properties. Investment properties typically require 25-30% down and may have slightly higher rates. This is popular for high-net-worth individuals building rental portfolios without using traditional income qualification.

Question 10

How long does underwriting take?

Accepted Answer

Asset-based loans typically close in 30-45 days, similar to conventional jumbo loans. The process may be faster than traditional loans since there's no employment verification or income documentation. Main timeline factors: asset verification, appraisal (jumbo properties take longer), and title work for high-value properties.

Feature	Conventional Jumbo	Asset-Based Loan
Income Verification	W-2s, tax returns, employment verification required	No income docs - qualify using liquid assets
Best For	W-2 employees with steady documented income	Retirees, investors, high-net-worth individuals
Loan Limits	Up to $766,550 (conforming limit)	$766,550 to $5M+ (jumbo)
Qualifying Assets	Not applicable - income-based	Stocks, bonds, retirement accounts, cash
Credit Score	620+ (varies by lender)	680+ (720+ for best rates)
Down Payment	3-20% for conforming loans	20-30% for jumbo loans
Interest Rate	Market rate (conforming loans)	0.25-0.75% higher than conventional jumbo
Tax Returns	2 years required	Not required (asset statements only)

Mortgage Solutions for High-Net-Worth Individuals

Why High-Net-Worth Borrowers Choose Asset Depletion Loans

Success Stories from High-Net-Worth Clients

The Challenge

Our Solution

The Outcome

The Challenge

Our Solution

The Outcome

The Challenge

Our Solution

The Outcome

Wealth Preservation Strategies

Maintain Investment Growth

Tax Efficiency

Liquidity Preservation

Estate Planning Benefits

Acceptable Asset Types

How Asset Depletion Works

Qualification Requirements

Asset-Based Loans vs Conventional Jumbo Mortgages

Calculate Your Asset-Based Loan Amount

Free Download: High Net Worth Mortgage Strategies

Frequently Asked Questions

Ready to Leverage Your Wealth?

Explore Related Options