Asset Depletion Loans – Asset Based Mortgage Programs
If you have a lot of assets, but make little-to-no income, an asset depletion loan might be a good option for you. An asset depletion loan allows you to use your assets to qualify for a mortgage (instead of income), and does not require you to be employed.
What Do Asset Depletion Loans Offer?
Asset depletion lenders offer programs with the following potential advantages:
- Credit scores as low as 500 accepted.
- Down payments as low as 10%.
- Loan amounts available up to $5,000,000.
- No income or employment required (you can be unemployed and still be eligible).
- Some lenders do not have any DTI requirements.
- Most lenders will allow you to use 100% of your liquid assets.
- Have assets divided by as little as 60 months to create your “monthly income”.
The exact requirements to get an asset depletion loan vary from lender to lender. If you would like some assistance finding a lender, we can help match you with a lender that offers asset depletion loans in your location. You may also view some of the best asset depletion lenders below.
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Asset Depletion Lenders
Below are 5 of the top mortgage lenders that offer asset depletion loans:
1 – Acra Lending
Below are details of the asset depletion program offered by Acra Lending:
- You may qualify if you have enough assets to cover the loan balance.
- No current employment/income required.
- The minimum FICO score required to qualify is 600.
- Loan amounts are available up to $3,000,000.
- The max LTV is 70% (so a minimum down payment of 25% on purchases).
- Available in the following states: AL, AR, AZ, CA, CO, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MT, NC, NE, NH, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, and WY.
This type of asset depletion program is known as an “ATR in Full” (Ability-to-Repay) program, which allows a borrower to qualify based on the amount of their total assets. As long as your total assets cover the loan balance, you should satisfy the asset requirements.
Click here to learn more about Acra Lending’s asset depletion program
2 – NewRez Wholesale
Below are details of the SmartFunds asset depletion program offered by NewRez:
- Divide assets by only 60 months.
- No current employment/income required.
- The max LTV for purchases is 90% (so down payments as low as 10%).
- Cash out refinancing up to 85% LTV.
- Loan amounts are available up to $3,000,000.
- The program is offered nationwide.
Click here to learn more about NewRez’s asset depletion program
3 – Sprout Mortgage
Below are details of the program offered by Sprout Mortgage:
- Divide your assets by only 60 months.
- The minimum credit score required is 660.
- The maximum LTV is 80%.
- No current employment/income required.
- Loan amounts are available up to $4,000,000.
- The program is offered nationwide.
Click here to learn more about Sprout Mortgage’s asset depletion program
4 – Advancial Wholesale
Below are details of the asset depletion program offered by Advancial Wholesale:
- The max LTV allowed is 80%.
- 2 week rush closing available.
- Can be combined with all other income sources.
- All occupancy and collateral types allowed
- Maximum loan amount available is $3,500,000.
- The program is offered nationwide.
Click here to learn more about Advancial’s asset depletion program
5 – Angel Oak Mortgage Solutions
Below are details of Angel Oak’s Asset Qualifier program:
- No employment/income required.
- The minimum FICO score required is 700.
- The maximum LTV is 75%.
- Loan amounts are available from $250,000-$3,000,000.
- Borrowers must have at least $500,000 in assets after closing.
- All assets require 6 months seasoning.
- 5 year seasoning after a bankruptcy, foreclosure, or short sale.
Click here to learn more about Angel Oak’s asset qualifier program
Additional Asset Depletion Lenders
Find an Asset Depletion Lender
Would you like some assistance finding a mortgage lender? We can help match you with a lender that offers asset depletion loans in your location.
Click here to get matched with a mortgage lender
Frequently Asked Questions
How do asset depletion loans work?
How as asset depletion loan works, is you take the total amount of your eligible assets, and then divide that amount by a specific number of months (which usually ranges from 60-360 months depending on the lender). This will create a “monthly income”, which certain lenders will allow you to use in lieu of actual income/employment. Basically, your assets suffice for your “ability-to-repay” your mortgage.
What are some other names for “asset depletion”?
Asset depletion loans are also known as “asset dissipation loans”, “asset utilization loans”, “asset qualifier programs”, and “asset based mortgages”. Some people even refer to them as “no income, high asset loans”. All of these terms are referring to the same type of mortgage program that allows you to use your assets for income qualification purposes.
What type of assets may be used to qualify?
The types of assets you may use depends on the specific lender. You should be able to use (but not necessarily limited to) any of the following assets: bank accounts (checking or savings), money market accounts, a CD (certificate of deposit), investment accounts (such as stocks, bonds, and mutual funds), and retirement accounts (such as a 401k or IRA).
Must I be a certain age to be eligible, or are there any certain age restrictions?
No, there are not any age requirements to be eligible. There are two potential ways that your loan application may be dealt with differently though, based on your age. The first is if you are over the age of 75, you might be able to use a formula based on a lower number of months (to calculate your “monthly payment”). The second potential scenario is if you are younger (under age 50), a lender may not let you use your retirement accounts as eligible assets. This would be since you are too far from retirement age. It will be up to the underwriter and the guidelines of the lender you apply with.
What if my assets / accounts are jointly owned?
If you have joint ownership of bank accounts or other assets, some lenders will not have any issue with this. There is a chance that an underwriter may reduce the amount of the assets that are eligible. It will be left to the underwriter to decide. We work with many lenders that offer these programs, and would be glad to help you find one that does not have an issue with jointly owned assets.
What types of properties are eligible for asset depletion loans?
You may finance the purchase of any single family residence, 2-4 unit property, condominium, condotel, or co-op (cooperative housing).
Are asset depletion loans available for second homes and investment properties?
Some asset depletion lenders offer options to finance a second home or investment property. However, some lenders will only finance a primary residence.