Asset depletion & asset-based
Asset depletion mortgages in Ohio and California — qualify on what you've saved, not what you earn.
You retired early. You sold a business. You live on investments and draw only what you need. On paper your income is small, and a standard application treats you like someone who can't afford the house you could pay for in cash. An asset depletion mortgage fixes that: the lender converts your savings and investments into a monthly income figure. The catch is that every lender does the math differently, and the difference is enormous. I'm Zach, licensed in Ohio and California, and choosing the right math is most of my job on these files.
Closings average about 13 days · No SSN or credit pull to start
The problem: wealthy on paper, unemployed on an application
A mortgage application asks what you earn each month. If you're 58 and living on a brokerage account, or you sold your company last year, or you take only small IRA distributions to keep your taxes low, the honest answer is "not much." A standard underwriter then calculates a debt ratio from that small number and declines a buyer with $1.5 million in the bank. Asset depletion, also called asset-based or asset-qualifier lending, stops asking what you earn and asks what your money could pay you.
÷ 60 – 360
Months your assets are divided by, depending on the lender
70 – 80%
Typical counted value of stocks and retirement accounts on non-QM
700+
Common non-QM credit minimum
70 – 80%
Typical maximum loan-to-value
Sources: Fannie Mae Selling Guide B3-3.4-06 (03/04/2026); Freddie Mac Guide 5307.1; lender program pages (NASB, LendFriend, LendSure), 2023–2026. Terms vary by lender and are not an offer.
Same savings, four very different incomes
Here is one buyer with $1,200,000 left in eligible assets after the down payment and closing costs. The only thing that changes from bar to bar is the number of months the lender divides by. That number is the whole game. Run this file through the wrong lender and it qualifies for a condo. Run it through the right one and it qualifies for the house.
Illustrative math, not an offer. At a roughly 43% debt ratio, $3,333 a month supports about $1,430 of total monthly debt and $20,000 supports about $8,600. Non-QM programs also discount stocks and retirement accounts (see below), so their counted balance is often lower than the statement total.
The three versions, side by side
| Fannie Mae | Freddie Mac | Non-QM asset qualifier | |
|---|---|---|---|
| Divisor | Loan term in months (360 on a 30-year) | 240 months | Usually 60 to 120 months, by lender |
| Eligible assets | 401(k), IRA, SEP, Keogh, lump-sum retirement or severance packages | Retirement, bank and brokerage accounts; lump-sum distributions; business-sale proceeds | Cash at 100%; stocks and bonds often 70–80%; retirement often 60–80% |
| Age rule | 80% LTV if 62+, otherwise 70% | Borrower-owner 62+ for bank-account funds | Usually none |
| Max LTV | 70% (80% at 62+) | 80% | About 80% purchase; lower for investment and cash-out |
| Loan types | Purchase, limited cash-out refi | Purchase, no-cash-out refi | Purchase, refi and cash-out; some allow investment property |
| Occupancy | Primary or second home | 1–2 unit primary or second home | Primary, second home, often investment |
| Pricing | Standard conventional | Standard conventional | Higher; 700+ credit and 6–12 months reserves typical |
Why a broker matters more here than anywhere: outside Fannie and Freddie, there is no standard asset-depletion rulebook. One lender divides by 60, another by 84, another by 360. One counts your IRA at 80%, another at 60%. The same statements can produce a decline at a bank and an approval at a better rate somewhere else. Coast2Coast brokers across the wholesale market, so I can put your file with the lender whose math fits it.
How the haircut works on a mixed portfolio
Non-QM lenders rarely count your statement balance dollar for dollar. Cash is cash, but a stock portfolio can drop and a retirement account carries taxes and possibly penalties, so they're discounted. Using common published percentages, a $1.2 million portfolio split three ways counts as $1 million.
Total counted: $1,000,000. Divided by 84 months, that's $11,905 a month of qualifying income. Percentages vary by lender and, for retirement accounts, by whether you're past 59½.
Who this is really for, in Ohio and California
In Cincinnati and around Ohio it's usually a retiree downsizing to a patio home in Mason or West Chester, or moving closer to the grandkids in Loveland or Blue Ash. They have a paid-off house, a 401(k) rolled into an IRA, and Social Security that doesn't come close to qualifying on its own. It's also the business owner who sold the company and has a large balance but no paycheck yet. With every Ohio county at the $832,750 conforming limit for 2026, many of these files fit the Fannie Mae or Freddie Mac version at a conventional rate. That's the first thing I check.
In California the loan sizes are bigger and the buyers are often younger: early retirees, people between ventures, tech employees who cashed out equity. In Los Angeles, Orange County, San Diego and the Bay Area, a purchase quickly passes the $1,249,125 high-cost ceiling and becomes a jumbo loan, where agency rules stop applying and non-QM asset programs do most of the work.
- 1 Day 1
The asset map
What you hold, where it's held, what you're using for the down payment, and any income you already have. I run the math under every version that could apply.
- 2 Week 1
Statements and lender
Two months of statements on every account, reviewed before they go anywhere. Large deposits get sourced up front, and we choose the lender whose divisor and percentages fit.
- 3 Under contract
Appraisal and underwriting
Underwriters verify the balances again near closing, so nothing moves without a conversation first. My closings average about 13 days from application.
- 4 Closing
Keys
The assets stay invested. You only had to show they could pay you, not actually spend them.
Before you call: what to have ready
- The two most recent statements for every bank, brokerage and retirement account you'd like counted
- Any income you already have, such as Social Security, a pension, rent, or a part-time W-2
- Your age, if you're near 59½ or 62, since both change the math
- How much you plan to put down, and how much you want to keep untouched after closing
- Whether the property will be your primary residence, a second home or a rental
Don't move money between accounts before we talk. Large unexplained transfers are the most common reason an asset file stalls, and the fix is easier before the move than after.
Figures current as of October 2026. Agency guides and lender programs change. I re-verify everything at application.
Napkin math, upgraded
What would the payment be on the house you want?
Asset depletion buyers usually put 20% or more down. Set your price and down payment, then compare the payment to the monthly income your assets produce in the chart below.
Illustrative estimates only — not a rate quote, an offer, or a commitment to lend. Your actual figures depend on your full scenario. More tools on the calculators page.
Real questions
Things people ask Zach about this
How does an asset depletion mortgage calculate my income?
The lender takes your eligible assets, subtracts what you're using for the down payment, closing costs and required reserves, and divides what's left by a set number of months. Fannie Mae divides by the loan term, usually 360 months. Freddie Mac divides by 240. Non-QM lenders often use 60 to 120 months, which turns the same savings into far more qualifying income. With $1.2 million left after closing, that's $3,333 a month at 360, $5,000 at 240 and $20,000 at 60.
Which accounts count, and at what percentage?
Checking, savings, money market and CDs usually count at 100%. On non-QM programs, stocks, bonds and mutual funds are often counted at 70% to 80%, and retirement accounts at 60% to 80% depending on your age and the withdrawal penalty. Fannie Mae counts only employment-related assets like 401(k), IRA, SEP, Keogh and lump-sum retirement or severance packages. Freddie Mac also takes bank and brokerage accounts. Both agencies exclude cryptocurrency, and home equity never counts.
Do I have to be retired or over 62?
Not always, but age changes the rules. Fannie Mae allows 70% loan-to-value, or 80% if the owner is 62 or older at closing. Freddie Mac requires a borrower-owner to be 62 or older for bank-account funds. Most non-QM programs have no age test at all, which is why early retirees, people between ventures and high-net-worth buyers with little W-2 income usually end up there.
How much do I need in assets?
There's no universal minimum, but non-QM lenders commonly look for $500,000 to $1 million or more in liquid assets after closing, plus 6 to 12 months of payments held back as reserves. The real test is simpler: after your down payment and closing costs, divided by the lender's months, do your assets produce enough monthly income to cover the new payment and your other debts?
Is the rate higher than a regular mortgage?
On a Fannie Mae or Freddie Mac version, no. It's a conventional loan priced like any other, just with a different income source. Non-QM asset-qualifier programs price higher, usually want 700-plus credit, and ask for 20% or more down. Whether that premium is worth paying depends on whether you qualify under the agency math at all. I price both whenever both are possible.
Can I combine asset depletion with Social Security, a pension or rental income?
Yes, and it usually helps. Documented income like Social Security, a pension, or rent on a property you already own adds to the asset-derived figure, so you need fewer assets to qualify. Many of my retiree files are a mix: a pension covers part of the debt ratio, asset depletion covers the rest, and the retirement accounts never have to be drawn down to buy the house.
Keep reading
Related lending
Jumbo loans in Ohio and California — asset depletion above the conforming limit →Bank statement loans in Ohio — self-employed income from deposits, not tax returns →Conventional loans in Ohio — the Fannie Mae and Freddie Mac version of asset-based qualifying →Refinance in Ohio — a limited cash-out refinance on asset-based income →California mortgage loans — asset depletion for Los Angeles, Orange County and Bay Area buyers →Ohio mortgage calculators — payment and affordability tools →Where Zach lends
Asset depletion mortgages across Ohio & California
No pressure, no credit pull
Run your asset depletion loan scenario by Zach.
Send the shape of it — what you’re buying, roughly what you earn, where you’re at. Zach reads every one personally and gets back to you the same day, nights and weekends included.
Nothing sensitive lives on this form: no Social Security number, no paperwork, and your credit isn’t touched until you say so. Equal Housing Opportunity. Zachary Bates, NMLS #2687902 · Coast2Coast Mortgage, NMLS #376205.