Let your assets qualify the loan, not just your paycheck.

How an asset-based income calculation works, conceptually

Rather than looking at pay stubs or tax returns, an asset depletion program totals a borrower's eligible liquid assets and applies a formula that spreads a portion of that total across an assumed number of months, producing a hypothetical monthly income figure used in underwriting.

The exact formula, which assets count, at what value, and over what time period all vary by lender and program. Guidelines are not standardized across the industry, so it's worth reviewing the specific approach for the program being considered.

Eligible versus ineligible asset types

Liquid accounts like checking, savings, money market funds and CDs are commonly eligible. Brokerage and investment account balances are often eligible as well, sometimes with adjustments. Vested retirement account balances may be included, frequently at a reduced value given access restrictions and potential tax or penalty considerations.

Assets that are harder to access, such as unvested stock options, restricted shares, illiquid business equity, or retirement funds before an eligible withdrawal age, are commonly excluded or capped, depending on the program.

• Checking, savings and money market accounts
• Certificates of deposit
• Brokerage and investment account balances
• Vested retirement account balances, often at reduced value
• Generally excluded: unvested equity, illiquid business holdings, restricted shares

Retirees and high-net-worth borrowers

Retirees who no longer draw a paycheck but hold significant savings, investment or retirement balances are a natural fit for this structure, since traditional income documentation doesn't reflect their real financial position.

High-net-worth borrowers with concentrated wealth in investments, rather than reported earned income, use these programs for similar reasons, particularly when purchasing higher-value property that pairs with jumbo financing.

Seasoning, sourcing and combining with other income

Lenders typically want to see that qualifying assets have been seasoned, meaning held in the borrower's accounts for a period of time, and may ask for documentation sourcing any large or unusual deposits before they can be counted.

Funds designated for down payment, closing costs and reserves are generally separated out from the assets used in the income calculation. Many programs also allow asset-derived income to be combined with other income, such as Social Security, pension or rental income, to help a borrower qualify.