Asset Depletion Loans for High Net Worth Borrowers
Asset depletion loans are designed for borrowers with substantial liquid assets who may not have traditional employment income. As a mortgage broker, Westpark Loans works with lenders offering programs that calculate qualifying income based on verified asset balances.
These programs are commonly used by retirees, high-net-worth individuals, and borrowers transitioning away from salaried employment.
Some borrowers also consider Bank Statement Loans.
This program is currently structured for California properties due to state licensing requirements.
What Is an Asset Depletion Loan?
An asset depletion loan allows borrowers to qualify for a mortgage by using their liquid assets to generate a calculated income stream.
Instead of relying on W-2 income or tax returns, lenders evaluate:
- Savings and checking balances
- Investment accounts
- Retirement funds (program dependent)
- Other verifiable liquid assets
Assets are typically divided over a fixed term to determine qualifying income.
ASSET DEPLETION LOAN QUALIFICATION GUIDELINES
Typical parameters may include:
- Verified liquid assets
- Asset-based income calculation formula
- Loan-to-value up to 80–90% depending on program
- Credit scores typically starting in the 600+ range
- Primary, second home, and investment property options
- Cash-out refinance eligibility
Guidelines vary by lender and borrower profile.
PROGRAM STRUCTURE
Asset depletion loan structures may include:
- 30-year fixed options
- Adjustable-rate mortgage options
- Interest-only structures (program dependent)
- No traditional employment income required
- Flexible documentation based on asset verification
We structure asset-based qualification around long-term financial planning and liquidity management.
ASSET DEPLETION LOAN TERMS
Typical loan parameters may include the following. Guidelines vary by lender and borrower profile.
| Feature | Details |
|---|---|
| States Allowed | California Only |
| Lien Position | 1st Position |
| Loan Term | 15–30 years typical |
| Loan Type | Asset-Based Mortgage Qualification |
| Interest Rates | Fixed or Adjustable options |
| Loan Amount | Varies by lender and asset profile |
| LTV | Up to 90% depending on qualification |
| Credit Score | Typically 640+ depending on program |
| Occupancy | Primary, second home, or investment |
| Property Types Allowed | 1–4 unit residential typical |
| Prepayment | May apply depending on structure |
| Closing Time | Typically 3–5 weeks |
STRATEGIC USE CASES
Asset depletion loans are commonly used for:
- Retirees purchasing or refinancing property
- Borrowers with substantial investments but limited W-2 income
- High-net-worth individuals transitioning careers
- Portfolio restructuring and cash-out refinance
- Primary and second home purchases
Asset-based qualification offers flexibility when income documentation is limited.
PROCESS OVERVIEW
- Asset review and documentation collection
- Income calculation based on depletion formula
- Appraisal and underwriting review
- Final approval
- Closing and funding
Timelines vary depending on documentation and lender guidelines.
IMPORTANT CONSIDERATIONS
- Assets must be verified and documented
- Some retirement assets may require additional calculations
- Interest rates may differ from full documentation loans
- Liquidity strategy should align with long-term goals
We help align asset-based qualification with comprehensive financial planning.
Frequently Asked Questions
Savings, brokerage accounts, and certain retirement funds may qualify depending on program guidelines.
No. Qualification is based primarily on verified assets.
Yes. Some programs allow investment property financing.
Yes. Many asset depletion programs permit equity extraction.
Lenders divide verified assets over a defined term to calculate qualifying income.
Eligible accounts may include retirement and brokerage funds, subject to seasoning and liquidity rules.
ASSET DEPLETION EXAMPLE
Linda, a retired executive in Palo Alto, had $4 million in liquid assets but limited monthly income.
Purchase Price: $2,200,000
Loan Amount: $1,600,000
Assets Verified: $4,000,000
Qualification: Asset depletion formula
Term: 30-year fixed
Credit Score: 760
Westpark Loans calculated qualifying income from assets, enabling purchase without employment documentation. Closed in 29 days.
Client Testimonials
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Broker Advantage Statement
Asset depletion programs vary by lender and asset eligibility rules. As a mortgage broker, Westpark Loans compares options to align liquidity, leverage, and long-term financial strategy. Westpark Loans — Your Trusted Partner in Real Estate Financing.