How it works
The lender totals eligible liquid assets — retirement accounts, brokerage, savings — applies a haircut for volatility and any early-withdrawal exposure, then divides the remainder across a set number of months, commonly 60 to 120. The result is treated as monthly income. No withdrawal is actually required.
A retired borrower has several million dollars invested but little traditional employment income. An asset-depletion program can convert eligible assets into a calculated monthly income stream under the lender’s formula.
Who it can work well for
Retirees, borrowers between ventures, and people whose wealth sits in assets rather than reportable monthly income. Often pairs with a large down payment.
What lenders actually look at
Lenders examine eligible asset type, ownership, liquidity, age/retirement status where applicable, required reserves, any penalties/taxes or haircuts, credit and the complete mortgage profile.
Illustrative lender guidelines
These are educational examples, not universal approval rules. Exact requirements and maximum leverage vary by lender and complete scenario.
| Scenario | Credit / qualifier | Illustrative leverage |
|---|---|---|
| Primary residence | 700+ | 80% |
| Primary residence | 660-699 | 75% |
| Investment property | 700+ | 70% |
| Retirement acct. haircut, under 59½ | — | 70% counted |
| Depletion period | — | 60-120 months |
What to watch for
Retirement accounts are usually discounted to 70% or less if you are under 59½. Assets have to be seasoned and fully documented — recently moved money raises questions.
Common misconception: the borrower has to spend or liquidate all the assets. The program is generally using assets as an underwriting basis; actual liquidation depends on the transaction and funds-to-close requirements.
When this may not be the best choice
It may not fit when assets are illiquid, heavily restricted, insufficient after lender haircuts, or ordinary retirement/employment income already qualifies more efficiently.
Common questions
Related programs
Want to see what may fit your scenario?
Tell LoanFight about the property, financing goal and borrower profile. We’ll show the financing paths worth reviewing and help match the scenario to an appropriate lending partner.
Tell Us About Your Deal →