How Is Asset Depletion Income Calculated?
Asset depletion income is your eligible assets divided by a set number of months. Our 36-month program divides retirement accounts by 36 (counted at 100% if you're of retirement age, 90% if not) and liquid and investment assets by 60, then adds the two. Our 60-month program divides total eligible assets by 60. Freddie Mac's accumulated-assets method divides by 180, and the Fannie Mae employment-related assets method subtracts the funds needed to close and divides by the loan term. We run every method on the same assets and use whichever qualifies you highest.
Key Facts
The Basic Formula
Asset depletion comes down to two things: your total eligible assets and the divisor the program uses. The lender totals your checking, savings, brokerage, and — with program-specific treatment — retirement accounts, then divides that total over a set number of months. The result is a monthly income figure the underwriter uses just like a paycheck. Your accounts stay invested; the calculation only establishes income on paper.
Which Assets Count
Eligible assets include checking and savings, brokerage and investment accounts, and retirement accounts such as IRAs and 401(k)s. Some programs apply a haircut to volatile or non-liquid holdings. You'll provide the most recent 2–3 months (or most recent quarter) of statements. If your wealth sits mostly in retirement accounts, our IRA and retirement-account loans may qualify you higher, and digital assets may fit a crypto mortgage.
The 36-Month Program
Retirement and IRA assets are divided by 36 — counted at 100% if you're of retirement age, 90% if not. Liquid and investment assets are divided by 60. The two results are added together. For retirement-heavy borrowers, this usually produces the highest income.
The 60-Month Program
Total eligible assets are divided by 60. It's the simplest calculation, and it can come out ahead when most of your assets are in brokerage or cash rather than retirement accounts.
Agency Methods: Freddie Mac and Fannie Mae
Freddie Mac's accumulated-assets method divides eligible assets by 180, which produces a lower monthly figure. The Fannie Mae employment-related assets method is the most conservative: it subtracts any early-withdrawal penalty and the funds needed for the down payment, closing costs, and reserves, then divides what's left by the loan term in months, with a 70% max LTV (80% if the asset owner is 62+).
Worked Example
A 65-year-old borrower has $1,200,000 in an IRA and $600,000 in a brokerage account. Under the 36-month program: $1,200,000 ÷ 36 = $33,333, plus $600,000 ÷ 60 = $10,000, for $43,333/month in qualifying income. Under the 60-month program: $1,800,000 ÷ 60 = $30,000/month. Under Freddie Mac's ÷ 180 method: $10,000/month. Same assets, very different results — which is why we run every method. Model your own numbers in the assets-as-income calculator.
Combining Assets With Other Income
Asset depletion can stand on its own or layer on top of other documentable income — W-2, 1099, business income, Social Security, or a pension — to raise the loan amount you qualify for. The minimum credit score is 620, with best pricing at 740+, and qualified borrowers can put as little as 10% down. See the full program on our asset depletion loans page, or compare asset depletion vs. bank statement vs. DSCR.
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From the Blog
Further Reading
RetirementRetiring Teacher, Tahoe Cabin: Qualifying for a Second Home With Assets as Income
A real case study: a teacher from El Dorado Hills who had already given notice before retiring found the perfect cabin in South Lake Tahoe. His salary no longer counted, and he wasn't taking Social Security or retirement distributions yet. Our portfolio assets-as-income option used his $1,050,000 in retirement and investment accounts over 60 months to qualify him for a $695,000 second home with 30% down.
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.
RetirementHow to Qualify for a Mortgage in Retirement — Without Taking Taxable Distributions (Oregon & California, 2026)
You can qualify for a mortgage in retirement using your savings, investments, and retirement accounts — without starting a single taxable distribution. Here's how Oregon and California lenders actually convert assets, Social Security, and pensions into qualifying income, why the widely repeated numbers (the 70% "discount" and the 25% Social Security gross-up) are wrong, and why the timing of your application relative to your retirement date matters more than almost anything else.