Retirees and Snowbirds
Buy a Florida home or second home while living on savings, Social Security and investments.
QUALIFY WITH YOUR SAVINGS AND INVESTMENTS
Asset Depletion Loans in Florida
QUALIFY WITH YOUR ASSETS.
NOT A PAYCHECK.
NO W-2s. NO PAY STUBS. NO EMPLOYMENT VERIFICATION.
For retirees, high-net-worth buyers and investors whose savings and investments are stronger than their monthly income.
1st Florida Lending Corp. · Orlando-based Direct Mortgage LenderASSET-BASED QUALIFYING
- Up to $5 MillionPrimary, second & investment
- No Mortgage InsuranceLower monthly costs
- No Prepayment PenaltyPay off or refinance anytime
- 24-Hour Pre-ApprovalWith a complete scenario
THE BASICS
What Is an Asset Depletion Loan?
An asset depletion loan lets you qualify for a mortgage with your savings and investments instead of a paycheck. You may also hear it called an asset utilization loan, an asset-based mortgage or an asset qualifier loan. The lender converts your eligible balances into a monthly income figure, then qualifies you on that figure.
You keep your investments. Nothing is sold, and your accounts are not pledged as collateral; the home secures the loan, as with any mortgage. No tax returns, pay stubs, W-2s or employment verification are required. Your credit, down payment and reserves are still reviewed.
This is a strong fit for people whose financial strength does not show up on a tax return: retirees living on savings, investors, business owners who recently sold a company, self-employed borrowers whose deductions shrink their taxable income, and anyone between careers with significant assets.
In one sentence: if your assets can carry the payment over time, they can be your qualifying income.
Not the same as business asset-based lending. Commercial "asset-based lending" is a business line of credit secured by receivables and inventory. An asset depletion loan is a home mortgage.
THREE WAYS TO USE YOUR ASSETS
Asset Depletion, Asset Utilization and Asset Qualifier Loans
| Asset depletion and asset utilization | Two names for the same method. Net eligible assets are divided by 60, 84 or 120 months to create a monthly income, and your total monthly debts, including the new payment, must stay within 50% of it (up to 55% on some primary-home loans). |
|---|---|
| Asset qualifier | Skips the monthly income figure. Instead, the assets you have left after closing must cover 120% of the new loan amount plus 30% of your other debts. Typically requires about a 660 credit score, with loan amounts from $200,000 to $2.5 million. |
You don't need to choose. Your loan officer runs your numbers both ways and uses the method that qualifies you best.
HOW THE MATH WORKS
How Asset Depletion Income Is Calculated
Monthly income = Net eligible assets ÷ 60, 84 or 120 months
- 1.
Total your eligible accounts
Add up the balances of qualifying accounts held in your name.
- 2.
Apply each account's percentage
Cash counts in full; CDs, investments and retirement accounts count at a set percentage to allow for penalties, market swings and taxes.
- 3.
Subtract what you need to close
Your down payment, closing costs and required reserves come out first. What remains is your net eligible assets.
- 4.
Divide by the program's term
Net eligible assets ÷ 60, 84 or 120 months equals your monthly qualifying income.
- 5.
Check your debt-to-income ratio
Your new housing payment plus other monthly debts should be no more than 50% of that income.
Three Florida examples (84-month term)
These use the lower end of the counting ranges shown below. Your program may count more.
| Borrower | What they have | Net eligible assets | Monthly income |
|---|---|---|---|
| Retired couple moving to Sarasota | $900,000 in IRAs (60% = $540,000) + $300,000 savings, less $140,000 to close | $700,000 | $8,333 |
| Investor buying in Naples | $1,500,000 brokerage (70% = $1,050,000) + $250,000 savings, less $250,000 to close | $1,050,000 | $12,500 |
| Business owner who sold a company | $600,000 savings + $250,000 in CDs (80% = $200,000), less $128,000 to close | $672,000 | $8,000 |
Illustrative examples, not loan offers
Retired couple moving to Sarasota
- What they have
- $900,000 in IRAs (60% = $540,000) + $300,000 savings, less $140,000 to close
- Net eligible assets
- $700,000
- Monthly income
- $8,333
Investor buying in Naples
- What they have
- $1,500,000 brokerage (70% = $1,050,000) + $250,000 savings, less $250,000 to close
- Net eligible assets
- $1,050,000
- Monthly income
- $12,500
Business owner who sold a company
- What they have
- $600,000 savings + $250,000 in CDs (80% = $200,000), less $128,000 to close
- Net eligible assets
- $672,000
- Monthly income
- $8,000
Why the number of months matters
The same assets produce more monthly income over a shorter term. With $840,000 in net eligible assets and a 50% debt-to-income limit:
| Term | Monthly qualifying income | Total monthly debts allowed |
|---|---|---|
| 60 months | $14,000 | $7,000 |
| 84 months | $10,000 | $5,000 |
| 120 months | $7,000 | $3,500 |
$840,000 in net eligible assets
60 months
- Monthly qualifying income
- $14,000
- Total monthly debts allowed
- $7,000
84 months
- Monthly qualifying income
- $10,000
- Total monthly debts allowed
- $5,000
120 months
- Monthly qualifying income
- $7,000
- Total monthly debts allowed
- $3,500
Social Security, pension or rental income can be added on top of asset income to strengthen the file.
Educational examples only. The figures used are assumptions for educational purposes. Speak with your loan officer for your final calculations.
RUN YOUR NUMBERS
Asset Depletion Income Calculator
Enter your balances to see an illustrative monthly qualifying income and how much room you may have for a new home payment.
Educational examples only. The figures used are assumptions for educational purposes. Speak with your loan officer for your final calculations.
WHICH ASSETS COUNT
Eligible Assets for Asset Depletion
| Account type | Share counted |
|---|---|
| Checking, savings and money market | 100% |
| Certificates of deposit (CDs) | 80% to 100% |
| Stocks, bonds and mutual funds | 70% to 90% |
| Retirement accounts (IRA, 401(k), SEP) | 60% to 80%, depending on your age and program |
| Cash value of life insurance and annuities | 100% on select programs |
| Unvested RSUs and stock options | 80% on select programs |
| Real estate, vehicles, business accounts, cryptocurrency, collectibles and gift funds | Not eligible |
How much of each account counts
Checking, savings and money market
- Share counted
- 100%
Certificates of deposit (CDs)
- Share counted
- 80% to 100%
Stocks, bonds and mutual funds
- Share counted
- 70% to 90%
Retirement accounts (IRA, 401(k), SEP)
- Share counted
- 60% to 80%, depending on your age and program
Cash value of life insurance and annuities
- Share counted
- 100% on select programs
Unvested RSUs and stock options
- Share counted
- 80% on select programs
Real estate, vehicles, business accounts, cryptocurrency, collectibles and gift funds
- Share counted
- Not eligible
Every account owner must be a borrower on the loan, and funds must be seasoned in your accounts for 90 days to 6 months. Large recent deposits or transfers need an explanation and a paper trail.
WHO IT CAN HELP
Built for Wealth That Doesn't Show Up on a Pay Stub
High-Net-Worth Buyers
Asset-rich borrowers whose taxable income is low by design.
Business and Home Sellers
Owners who recently sold a company or property and no longer draw a salary.
Investors
People who live on portfolio gains, dividends and interest.
Between Jobs or Careers
Borrowers with strong savings but no current employment income.
Self-Employed Borrowers
Owners whose write-offs make their tax returns understate what they can afford.
Florida has no state personal income tax, which draws many retirees and investors here. If you live on investments, asset depletion can be the cleanest way to show what you can afford.
FINANCING PURPOSES
Buy, Refinance or Cash Out
Purchase
Buy a primary home, second home or investment property using assets as qualifying income.
Rate-and-Term Refinance
Refinance an existing mortgage when your income has changed since you bought.
Cash-Out Refinance
Up to 80% of your home's value on a primary home, and up to 75% on select second homes and investment properties.
Keep your money working
Because you qualify without selling investments, you can avoid triggering capital gains, keep your market returns and skip setting up monthly withdrawals. Asset income can also be combined with Social Security, pension, retirement distributions, rental income or part-time earnings.
COMPARE YOUR OPTIONS
Asset Depletion vs. Other No-Tax-Return Loans
| Asset depletion | Qualifies on savings and investments. Best when you have large balances but little monthly income. |
|---|---|
| Bank statement loan | Qualifies on 12 or 24 months of deposits. Best for business owners with steady cash flow. Learn more |
| Profit & loss loan | Qualifies on a business P&L statement. Best for owners whose deposits are mixed or seasonal. Learn more |
| DSCR loan | Qualifies on a rental property's rent, with no personal income used. Investment property only. Learn more |
| Pledged-asset loan | Your investments become collateral and are restricted until you build equity. With asset depletion, your accounts stay fully in your control. |
See every option on our Self-Employed & Non-QM Loans page.
QUALIFICATION
Asset Depletion Loan Requirements
Important: Guidelines can change without notice. Your loan officer will confirm current credit, down payment, reserve and asset requirements for your scenario.
| Credit score | 620 minimum. Scores from 620 to 639 require 30% down and a lower maximum loan amount. |
|---|---|
| Down payment | As little as 10% on a primary home; 15% or more for second homes and investment property. Lower scores and larger loans require more. |
| Loan amount | Up to $5,000,000. Larger loans need stronger credit and more equity. |
| Debt-to-income ratio | Up to 50%, or up to 55% on a primary home with stronger credit and a larger down payment. |
| Reserves | 6 months of housing payments (principal, interest, taxes, insurance and HOA dues); more for larger loans. |
| Asset seasoning | Funds held 90 days to 6 months, shown on consecutive statements. Every account owner must be a borrower. |
| Occupancy | Primary homes, second homes and investment property. |
| Cash-out refinance | Up to 80% loan-to-value on a primary home; up to 75% on select second homes and investment properties. |
| Income documentation | No tax returns, W-2s, pay stubs or employment verification. |
| Mortgage insurance | None, at any down payment. |
| Prepayment penalty | None. |
| Pre-approval | Within 24 hours with a complete scenario. |
A BALANCED VIEW
Pros and Cons of Asset Depletion Loans
Pros
- No paycheck required: Qualify on what you have, not what you earn each month.
- Keep your investments: Nothing is sold or pledged, so you avoid capital gains and keep your returns.
- Low down payment for the category: As little as 10% down with no mortgage insurance.
- Combine income sources: Add Social Security, pension or rental income.
- Large loan amounts: Up to $5 million, with no prepayment penalty.
Cons and considerations
- Cost: Rates are usually higher than a conventional loan for a borrower with well-documented income.
- You need substantial assets: Dividing by 60 to 120 months means it takes a large balance to create meaningful income.
- Not every asset counts: Retirement and investment accounts are discounted, and real estate, business accounts and crypto don't count.
- Seasoning and paperwork: Funds must be documented and held in your accounts for 90 days to 6 months.
BE READY
Your Asset Depletion Document Checklist
- Application and credit authorization: Your basic information to start.
- Asset statements: Consecutive statements covering 90 days to 6 months for every account you want counted.
- Retirement account terms: Showing you can withdraw the funds.
- Explanations for large deposits: With a paper trail for transfers and sales.
- Other income documents: Social Security or pension award letters, if you are adding that income.
- Property details: Purchase contract, or your current mortgage statement for a refinance.
Your officer will provide a checklist for your scenario. Do not send identification or financial documents by ordinary email; use the secure upload link your officer provides.
YOUR NEXT STEPS
From First Call to Closing
- 1.
Talk through your scenario
Share your accounts, other income and the home you want with a licensed loan officer.
- 2.
Get your income estimate
We calculate your qualifying income from your assets, compare the 60, 84 and 120-month terms and the asset qualifier method, and confirm the loan amount you can target.
- 3.
Pre-approval in 24 hours
With a complete scenario, you receive a pre-approval to shop with confidence.
- 4.
Underwriting
Underwriting verifies your statements, seasoning, credit and the property, then issues conditions.
- 5.
Close
Sign and get your keys, with your investments still working for you.
Work with an Orlando-based direct mortgage lender
1st Florida Lending Corp. has helped Floridians qualify outside the box since 2007. Our loan officers work with retirees, investors and business owners every day, and we run your numbers every way the program allows to find the approach that counts your assets best.
- Loan amounts up to $5 million
- As little as 10% down
- No mortgage insurance
- No prepayment penalties
- Pre-approval within 24 hours
- In-house processing from application to closing
- Licensed Florida direct mortgage lender
Let your assets do the qualifying
Tell a licensed loan officer about your accounts and the home you want. No sensitive documents are needed for the first conversation.
Asset Depletion Loan FAQs
Disclaimer
This page is educational and does not constitute a loan commitment or offer of credit. The calculator and examples are illustrative only and do not establish qualifying income, loan eligibility or final terms. All loans are subject to credit approval, asset verification, property qualification and program guidelines, which vary by underwriter and may change without notice. 1st Florida Lending Corp. is a licensed mortgage lender. Equal Housing Lender.