Asset Depletion Loans
An asset depletion loan is a non-QM mortgage where the lender calculates your qualifying income from your savings and investments instead of a paycheck or tax returns. I offer it to borrowers in Arizona, Pennsylvania, Florida, and Texas.
Justin Lazzaro, NMLS #1229453 | Reasy Financial, LLC, NMLS #2446155 | Licensed in Arizona, Pennsylvania, Florida, and Texas
Who an asset depletion loan fits
This loan is built for people whose financial strength shows up in their accounts, not on a pay stub. It is not the right tool for everyone, and I will tell you when a different loan is the better value.
Retirees and early retirees
Your income may look modest on paper, but your savings, brokerage, and retirement accounts tell a different story.
Wealth without a regular paycheck
You sold a business, live on investments, or are between roles, and your tax returns do not reflect what you can comfortably afford.
Who it usually does not fit
If steady W-2 income qualifies you, a conventional loan will usually cost less. If you are self-employed, a bank statement loan is usually priced about the same and often needs a smaller down payment.
How qualifying works
1
We total your eligible assets
Checking, savings, brokerage, and retirement accounts can all count. Some account types are counted at less than full value.
2
The lender runs its formula
Funds you need for the down payment and closing costs are set aside first. The rest is divided over a set number of months to produce a monthly income figure.
3
That figure is your income
It is used the way a paycheck would be, often alongside other income you have, such as Social Security or a pension.
Some lenders offer a second route, often called asset qualifier or asset utilization. Instead of calculating an income figure, the lender confirms that your assets are large enough to cover the loan plus several years of your other debts. Formulas, eligible accounts, and how long funds must be in your accounts vary by lender.
How it compares to other loans
The main difference between these loans is how your income is documented. Here is a side-by-side look.
| Loan type | How income is documented | Often a fit for |
|---|---|---|
| Asset depletion loans | Calculated from eligible savings, investment, and retirement balances | Borrowers with substantial assets and limited paycheck income |
| Bank statement loans | Deposits shown on business or personal bank statements | Self-employed borrowers |
| DSCR loans | The rental income of the property being financed | Real estate investors |
| Conventional loans | Pay stubs, W-2s, and tax returns | Borrowers whose documented income qualifies on its own |
Three things to know before you apply
1
Lender formulas differ
One lender may spread your assets over a shorter period than another, and some count stocks or retirement funds at a lower percentage. The same accounts can produce very different qualifying income, which is why I compare several lenders.
2
Assets only count once
Money you use for the down payment and closing costs, and with some lenders required reserves, comes out first. Accounts that already produce income being counted, such as IRA distributions or dividends, cannot be counted a second time.
3
It usually costs more
Non-QM loans generally carry higher rates and costs than conventional loans. Asset depletion is usually priced close to a bank statement loan, but a bank statement loan often allows a smaller down payment, and lenders expect a minimum level of assets. If you qualify conventionally, that is usually the better value, and I will tell you so.
Retirement accounts are usually counted at a reduced percentage, and some lenders only count them once you are 59 and a half or older.
Common questions about asset depletion loans
Short answers to common questions. Program rules vary by lender, so treat these as general guidance, not a loan decision.
Do I have to sell my investments?
No. The lender uses your balances to calculate a qualifying income figure. You only draw on the funds you choose to put toward your down payment and closing costs.
Which accounts can count?
Typically checking, savings, money market, brokerage, and retirement accounts. Investment and retirement accounts are often counted at less than full value, and gift funds generally do not count.
Can I combine it with other income?
Often, yes. Many lenders let you add Social Security, pension, or other documented income to the asset-based figure.
What types of property are eligible?
It depends on the lender. Most programs cover primary residences and second homes, and a smaller number allow investment properties.
Can I use it to refinance?
Often, yes. Purchases and rate and term refinances are widely available. Cash-out refinances are more restricted, and some lenders do not allow them with asset-based income.
Where do you offer these loans?
I am licensed in Arizona, Pennsylvania, Florida, and Texas, and I work with several wholesale lenders that offer asset-based programs.
Ready to talk it through?
Pick a time that works for you. We'll go over your goals and next steps, no pressure, just a conversation. Prefer to call or text instead? Reach me directly at (412) 638-4982, or book a quick Zoom if that's easier.
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Licensing
Justin Lazzaro, NMLS #1229453
Reasy Financial, LLC, Company NMLS #2446155
AZ Mortgage Banker License BK #2012302
FL Mortgage Lender License MBR6883
PA Mortgage Lender License 107748
TX Mortgage Company License 2446155
Licensed in Arizona (LO-2001846), Florida (LO71883), Pennsylvania (73668), and Texas
Contact
14100 N 83rd Ave, Suite B-230
Peoria, AZ 85381
