Asset Depletion Loans for Borrowers With Significant Assets
Instead of relying solely on employment income or tax returns, eligible borrowers may use qualifying liquid assets to demonstrate their ability to repay a mortgage. This can be especially useful for retirees, self-employed borrowers, high-net-worth individuals, and borrowers with significant assets but limited or inconsistent traditional income.
What Is an Asset Depletion Loan?
Rather than relying entirely on employment or monthly income, the lender evaluates qualifying assets and may convert a portion of those assets into an income equivalent for mortgage qualification.
This approach can give borrowers with significant savings, retirement accounts, investments, or other qualifying assets an alternative way to demonstrate their ability to repay a mortgage.
At Crestico Funding, our Asset Qualifier Loan program is designed to help borrowers explore mortgage financing when traditional income-based qualification may not accurately reflect their overall financial position.
How Does Asset Depletion Work?
This can be helpful when a borrower has substantial assets but does not have consistent employment income or traditional income documentation.
Step 1
Check Eligibility
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Crestico Funding Asset Qualifier Loan
The program is designed around the borrower’s qualifying assets rather than relying exclusively on conventional employment income.
This may make an Asset Qualifier Loan particularly useful for retirees, high-net-worth borrowers, and self-employed individuals whose income may fluctuate from year to year.
Instead of allowing traditional income documentation to tell only part of your financial story, an asset-based qualification approach may allow your eligible assets to play a greater role in the mortgage process.
Who May Benefit From an Asset Depletion Mortgage?
This type of financing may be suitable for:
Retirees with significant retirement or investment assets
Self-employed borrowers with fluctuating income
Borrowers with limited traditional employment income
Borrowers with substantial liquid savings
High-net-worth borrowers
Asset Depletion Loan Program Features:
Key program features include:
Asset Requirements for an Asset Depletion Loan
The program information specifies a minimum of $500,000 in post-closing assets. Borrowers must also have sufficient funds to close the transaction and meet the required reserve requirements.
Assets must be properly sourced and seasoned according to the program guidelines. The program information specifies a six-month seasoning requirement for assets.
Because asset requirements can vary based on the loan scenario, property, and borrower profile, it is important to review your individual circumstances with a Crestico Funding loan officer.
Asset Depletion Loan Options
Purchase Loans
This may be an option for borrowers who have substantial assets available but whose traditional income does not meet conventional mortgage qualification guidelines.
Cash-Out Refinance
A cash-out refinance may allow qualifying homeowners to access available home equity while using an asset-based qualification strategy.
Rate-Term Refinance
This can provide an alternative refinancing option for borrowers whose assets are a stronger representation of their financial position than their traditional income.
Why Consider an Asset Qualifier Loan With Crestico?
Crestico Funding helps borrowers explore mortgage solutions based on their individual financial circumstances.
Our Asset Qualifier Loan program provides an alternative for qualifying borrowers who may have significant assets but limited or inconsistent traditional income.
Rather than assuming that conventional mortgage qualification is your only option, you can review your financial profile with a Crestico Funding loan officer and determine whether an asset-based qualification strategy may be appropriate.
Frequently Asked Questions
What Is an Asset Qualifier Program With Asset Depletion?
The asset depletion approach may convert qualifying assets into an income equivalent that can be considered during underwriting.
This can be particularly useful for borrowers who have substantial assets but limited or inconsistent traditional income.
Can a Retirement Account Be Used to Qualify for a Mortgage?
The exact treatment of retirement assets depends on the loan program and borrower circumstances.
What Assets Are Required?
Borrowers must also have sufficient funds to close and meet the applicable reserve requirements. Assets must satisfy applicable sourcing and seasoning requirements.