Asset Depletion Mortgages
You’ve saved for decades.
That should count.
Retirees get told no more often than they should. The income on paper is Social Security and a modest pension; substantial brokerage and retirement assets may not be reflected in a standard debt-to-income calculation. An asset depletion mortgage can address that by converting your eligible assets into a qualifying monthly income figure.
Who this is for
Retirees and early retirees buying a home or downsizing. Borrowers between jobs or between a sale and the next venture. Anyone with substantial liquid or retirement assets and modest reported income. It’s also used alongside regular income when the paycheck alone falls just short.
How it works
The underwriter takes your eligible assets — brokerage accounts, retirement accounts, savings, sometimes a portion of other holdings — applies the program’s rules on which assets count and at what percentage, subtracts the funds you’ll use for the down payment and closing, and divides the remainder over a set number of months. The result is treated as monthly income for qualifying purposes. This is a qualifying-income calculation, not a required monthly withdrawal. Whether assets must be accessible, retained, or adjusted under program rules varies.
What to expect
Programs differ in which assets count, how retirement accounts are treated before and after age 59½, and the number of months used in the calculation, so the same accounts can produce very different qualifying income from one investor to the next. That’s where it helps to work with a team that does this regularly. We’ll run the numbers two or three ways and show you which structure fits. Because this touches your retirement planning, we’ll also encourage you to loop in your financial adviser and tax professional before you commit.
Questions we hear most
The details matter.
Let’s talk through them.
- Do I have to be retired?
- No. Eligible assets can be used by borrowers who are still working, depending on program requirements.
- Can I combine asset income with Social Security or pension income?
- Yes, that’s a common structure, subject to the program’s rules and documentation.
- Do retirement accounts count if I’m under 59½?
- Often at a reduced percentage; it depends on the program and access restrictions.
- Does this work for a jumbo loan?
- Yes; eligible asset-based qualification is used in some jumbo programs for high-net-worth borrowers.
Not sure if you’d qualify? That’s what the Second Look is for.
You’ll be paired with the loan originator licensed in your state. Alabama loans are originated by Aubrea McNamara, NMLS #1842646.
Program availability, documentation requirements, and terms vary by state and investor and change over time. Nothing on this page is a commitment to lend or a guarantee of approval. All loans subject to credit and property approval. Canopy Mortgage, LLC, NMLS #1359687. Equal Housing Opportunity.