Asset Depletion Loans (Non-QM) — Star Financial

An Asset Depletion Loan allows borrowers to qualify for a mortgage by using their assets—such as savings, investments, or retirement accounts—as income. Instead of relying on employment or tax returns, lenders calculate monthly income based on the borrower’s total liquid assets, making it ideal for retirees or high-asset individuals with limited regular income.

Qualify for a mortgage using your liquid assets instead of traditional W-2/Tax-Return income. Ideal for high-asset borrowers—retirees, entrepreneurs, and investors—whose cash flow isn’t easily shown on tax returns.

Who This Helps

• Retirees or early retirees drawing from portfolios
• Self-employed and business owners with variable income
• High-asset borrowers with low taxable income
• Investors with significant cash, stocks, bonds, or vested RSUs

Key Benefits

• No tax returns in many cases — qualify via asset balances and program formulas
• Flexible documentation (bank/brokerage statements)
• Purchase, rate/term, and cash-out available
• Eligible for primary, second home, and many investment properties (program-specific)

How Qualification Works (Typical Methods)

• Asset Depletion/Amortization: Eligible assets divided by a program term (e.g., 84–120–180–240 months) to derive qualifying income
• Liquidation percentage: Some assets counted at a haircut (e.g., 70% of securities, 100% of cash; retirement assets may have different factors)
• Reserves & LTV/Credit: Required reserves and max LTV vary by credit score and occupancy

Exact calculations vary by investor matrix. We’ll run scenarios side by side and confirm the best fit.

Eligible Asset Types (Program-Dependent)

• Cash & cash equivalents: Checking, savings, money market
• Securities: Stocks, mutual funds, ETFs, bonds
• Retirement accounts: 401(k), IRA, Roth (availability and haircut vary; early-withdrawal rules may apply)
• Restricted stock/RSUs: If vested and sellable (documentation required)

Documentation You May Need

• 2–3 months of bank/brokerage statements (longer for retirement assets)
• Vesting schedules for RSUs/options (if applicable)
• Photo ID, HOI, HOA docs (if any), and standard property docs
• Asset ownership and source/seasoning verification as required

Star Financial • NMLS 1429 • Serving CA, TX & FL
Disclosures: Non-QM program; not a commitment to lend. Eligibility, rates, and terms subject to change and full underwriting approval. All loans subject to credit, income, asset, and property verification per investor guidelines. Consult your tax advisor regarding deductibility.