Asset Depletion
An asset depletion loan converts your liquid assets into a monthly qualifying income — typically by dividing eligible balances by 60 months (taxable) or 84 months (retirement). No paycheck or tax return income is required. Best for founders, retired operators, or anyone whose wealth is in the portfolio rather than the W-2.
By Sunrise Lending
About this program
What is a Asset Depletion?
How it works — step by step
Take the 60-second check-in
Five questions about your liquid assets, any income you also receive, and your transaction goal. The matcher calculates a rough qualifying income figure and surfaces whether pure depletion or a hybrid with other income is the stronger path.
Document eligible assets
Gather 2–3 months of statements for all eligible accounts: brokerage, cash, IRA, 401(k), Roth. Vested public stock counts. Restricted stock may qualify with documented liquidity. Business equity, real estate equity, and crypto are typically excluded.
Licensed MLO runs the depletion calculation
A Sunrise loan officer applies the depletion factor to each eligible asset class, identifies any haircuts for pre-59½ retirement accounts, and confirms the hybrid configuration if other income supplements depletion income.
Underwriting on asset-derived income
The lender converts asset balances to a monthly income figure and uses it in DTI math. Your investment accounts are not pledged as collateral — they remain in your name and continue to grow. Standard underwriting (appraisal, credit, title) proceeds from here.
Close and fund
Well-organized asset-depletion files typically close in 30–45 days. Document-heavy files (multiple accounts, restricted stock) may add a few days. The officer keeps you informed at each milestone.
What it usually looks like
- Eligible assets: cash, brokerage (taxable), IRA, 401(k), Roth IRA, vested public stock
- Depletion factor: typically 60 months for taxable accounts, 84 months for retirement
- Pre-59½ retirement accounts: haircut often 70–80% of balance before applying factor
- Credit score typically 700+ (better pricing at 740+)
- Assets must remain after closing — post-close reserves separate from the depletion pool
- Down payment typically 10–25% (not sourced from the depleted asset pool)
- Assets must be fully documented with 2–3 months of statements per account
- Hybrid stacking: asset depletion may be combined with W-2, K-1, or bank-statement income
How it compares
| Factor | Asset Depletion | Bank Statement | Pledged Asset Loan |
|---|---|---|---|
| How income is calculated | Asset balance ÷ depletion factor | 50% of avg monthly deposits | Assets collateralized; lower rate |
| Assets pledged as collateral | No — assets stay in your name | No | Yes — account pledged to lender |
| Primary income doc | Account statements | Bank statements (12–24 mo) | Brokerage account pledge agreement |
| Best for | Wealth-rich, income-light | Operating business owners | HNW borrowers OK pledging assets |
| Can stack with other income | Yes — W-2, K-1, bank statement | Yes | Varies by program |
| Min. credit score | 700+ (typical) | ~640 | 700+ |
Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.
Real scenarios
SaaS founder, San Francisco CA
A bootstrapped software founder paid herself a $75K W-2 salary while her brokerage held $1.6M in vested public stock. At 60 months depletion, that produced $26,667/month in depletion income. Combined with her $6,250/month W-2, total qualifying income was $32,917/month — enough to support a $1.4M purchase in a high-cost metro.
- Brokerage (taxable)
- $1.6M
- Depletion income
- $26,667/mo
- W-2 income
- $6,250/mo
- Total qualifying income
- $32,917/mo
Illustrative scenario. Not a commitment to lend.
Retired business operator, Scottsdale AZ
A 58-year-old who sold a distribution business had $2.4M in a taxable brokerage and $890K in a rollover IRA. At 60 months depletion on the taxable portion: $40,000/month. The IRA had a 25% haircut for pre-59½ access, leaving $667,500 eligible — at 84 months, that added $7,946/month. Total depletion qualifying income: $47,946/month. He purchased a $2.1M retirement property.
- Taxable brokerage
- $2.4M → $40,000/mo
- IRA (with haircut)
- $667.5K eligible → $7,946/mo
- Total depletion income
- $47,946/mo
- Purchase price
- $2.1M
Illustrative scenario. Not a commitment to lend.
Who this fits
Common questions
- Who is the asset depletion loan designed for?
- High-net-worth borrowers whose paper income is low but liquid assets are substantial — founders with vested stock, retired operators with brokerage wealth, or anyone whose real net worth lives in investment accounts rather than a paycheck.
- How is qualifying income calculated from assets?
- The lender divides eligible balances by a depletion factor — typically 60 months for taxable accounts and 84 months for retirement accounts. The monthly result becomes qualifying income for DTI math. A $600K brokerage at 60 months = $10,000/month.
- Which assets qualify for asset depletion?
- Cash, brokerage accounts, IRA, 401(k), Roth IRA, and vested public stock. Real estate equity, business equity, and crypto are typically excluded. Restricted stock may qualify with documented liquidity plans.
- What about retirement accounts before age 59½?
- Most programs apply a 20–30% haircut to pre-59½ retirement balances (reflecting the 10% early-withdrawal penalty). Some programs require an explicit access path (72(t) distribution or 401(k) loan) before counting those funds.
- Can I pair asset depletion with other income?
- Yes. Asset depletion stacks with W-2 income, K-1 distributions, or bank-statement income on hybrid files. The matcher checks both pure depletion and hybrid paths; the officer recommends whichever supports the best DTI.
- How is asset depletion different from a Pledged Asset Loan?
- A Pledged Asset Loan uses investment accounts as collateral for a lower rate. Asset depletion converts balances to income math — your assets stay in your name, fully liquid, and continue growing. Different mechanism, overlapping use case.
- What credit score do I need for asset depletion?
- Most programs require 700+, with better pricing at 740+. A strong asset position can sometimes offset weaker credit; the licensed officer confirms after reviewing the complete file.
- How much do I need in assets to qualify?
- It depends on loan size and DTI. A rough illustration: a $5,000/month qualifying payment needs roughly $300K+ in eligible taxable assets at the 60-month factor. The matcher runs the math for your specific situation.
Not sure if Asset Depletion is the right fit?
Take the 60-second check-in. The matcher narrows you to the right path; a licensed mortgage officer reviews before anything formal moves.
Related resources
Sources
- 1.Internal Revenue Service (IRS). IRA FAQs — Distributions (Withdrawals) — Accessed June 2026
- 2.Consumer Financial Protection Bureau (CFPB). Ability-to-Repay and Qualified Mortgage Standards — Accessed June 2026
- 3.Federal Reserve Bank of St. Louis (FRED). Net Worth of Households and Nonprofit Organizations — Accessed June 2026
Asset-depletion calculations, eligible asset classes, and depletion factors vary by lender (typically 60 months for taxable accounts and 84 months for retirement accounts, with possible haircuts for pre-59½ retirement balances). Assets are not pledged as collateral. Final approval, terms, and rates are determined by the lender after underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.