Asset Depletion vs. Bank Statement vs. DSCR: Which Loan Fits?
Each one qualifies you on a different source instead of tax returns. Asset depletion turns savings, brokerage, and retirement balances into monthly income — built for retirees and asset-rich, income-light borrowers. A bank statement loan reads income from 12 or 24 months of deposits — built for self-employed business owners. A DSCR loan ignores personal income and qualifies a rental on its own rent — built for investors. All three start at a 620 credit score, with best pricing at 740+.
Key Facts
The Short Answer: What Do You Have the Most Of?
Large account balances and little income on paper point to asset depletion. A profitable business whose tax returns understate what you earn points to a bank statement loan. A rental property whose rent covers its payment points to a DSCR loan. If more than one applies, we run each path and compare.
Asset Depletion: Qualify on What You've Saved
The lender totals eligible checking, savings, brokerage, and retirement accounts and divides them over a set number of months — for example, our 60-month program divides total eligible assets by 60. No job or employment income is required, your accounts stay invested, and the result can be layered with Social Security, pension, or other income. Down payments start at 10%, with loan amounts from $150,000 to $3,000,000+. See how asset depletion income is calculated.
Bank Statement: Qualify on What You Deposit
The lender averages 12 or 24 months of personal or business deposits. Personal deposits are generally counted as-is; business deposits get an expense factor, typically 50%. You need about two years of self-employment confirmed by a CPA or licensed tax preparer. Down payments start at 10% on a primary residence and 15–20% on investment property. See 12 vs. 24 months and personal vs. business.
DSCR: Qualify on What the Property Earns
The lender divides the property's rent by its monthly payment (PITIA). A 1.0x ratio is standard, and ratios as low as 0.75x are possible with 700+ credit and strong reserves. No personal income is reviewed at all. DSCR is for 1–4 unit non-owner-occupied investment properties, needs at least 20% down, and allows LLC vesting with no cap on financed properties. See the full DSCR loan requirements.
When You Fit More Than One
A self-employed investor buying a rental could use a bank statement loan or a DSCR loan; the DSCR loan keeps your personal income out of it entirely, while the bank statement loan may allow less down. A retired business owner with savings could qualify on assets, deposits, or both — asset depletion can be layered with other documentable income. Because the same borrower can qualify for very different amounts under each method, we run the numbers on every path before recommending one.
Asset Depletion vs. Bank Statement vs. DSCR — Side by Side
Three ways to qualify without tax returns, compared on what drives the approval.
| Asset Depletion | Bank Statement | DSCR | |
|---|---|---|---|
| Qualifies on | Eligible assets ÷ set months | 12 or 24 months of deposits | Property rent ÷ PITIA |
| Best for | Retirees, asset-rich, income-light borrowers | Self-employed business owners | Real estate investors |
| Occupancy | Primary, second home, or investment | Primary, second home, or investment | Investment only |
| Entity vesting | LLC or revocable trust | LLC or revocable trust | LLC or revocable trust |
| Personal income reviewed | Optional — can layer other income | Yes, via deposits | No |
| Minimum credit | 620 (740+ best pricing) | 620 (740+ best pricing) | 620 (740+ best pricing) |
| Minimum down | 10% | 10% primary; 15–20% investment | 20% (25% short-term rental) |
| Key document | 2–3 months of asset statements | Bank statements + CPA letter | Lease or 1007 rent analysis |
| Calculator | Assets-as-income | Bank statement income | DSCR |
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From the Blog
Further Reading
Self-Employed$195K Taxable vs. $875K Gross: Why Consultants Need Bank Statement Loans
A consultant grossing $875,000 but reporting $195,000 in taxable income loses more than half their purchasing power under conventional underwriting. Bank statement loans close that gap by qualifying on actual deposits — not tax returns. Here’s exactly how the math works and why this is the most important mortgage decision a high-earning consultant will make.
High-Net-WorthAsset Depletion Loans in Oregon and California: How to Turn Savings, Investments, and Retirement Into Mortgage-Qualifying Income (2026)
Asset-rich but income-light? An asset depletion loan converts your savings, investments, and retirement accounts into qualifying income — no job, paycheck, or tax returns required. Here's how the three calculation methods work, and why the same borrower can qualify for wildly different loan amounts depending on which one a lender uses.
InvestmentDSCR Loans Explained: How Real Estate Investors Qualify Without Tax Returns
If you're a real estate investor with strong rental income but complex taxes, a DSCR loan might be your best financing option. Here's exactly how they work and who they're designed for.