Asset-Based Documentation

Asset depletion mortgages, explained.

Asset depletion converts documented liquid assets into a qualifying monthly figure on paper. Nothing is spent or pledged — the assets simply demonstrate capacity to repay when a pay stub is not the clearest picture of your finances. Lenders divide eligible holdings over a defined period to produce the income figure used in the review.

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Dino Palmieri, Loan Officer · NMLS #1121689 · CA DRE #01517431 · C2 Financial Corporation, NMLS #135622 · Licensed in California · Equal Housing Opportunity

When monthly income is the wrong lens

Plenty of financially strong borrowers have modest documented monthly income: retirees drawing selectively, founders between liquidity events, and people whose returns swing year to year. A conventional review reads those files narrowly.

Asset-based documentation reframes the question from what arrived last month to what is actually held and available.

How the calculation is usually approached

  • Eligible accounts are identified and documented
  • Certain balances may be discounted depending on account type and volatility
  • The eligible total is divided over a defined period to produce a monthly figure
  • That figure is used alongside, or instead of, other documented income

What it is not

It is not a pledge of your assets, it is not a securities-backed line of credit, and it is not a stated-income loan. The accounts are documented and verified like any other part of the file.

Who this tends to fit

  • Retirees with substantial documented holdings and modest drawn income
  • Borrowers between liquidity events or with irregular annual income
  • Buyers of California second homes funded largely from investments
  • Scenarios where blending asset documentation with other income reads better

Tradeoffs to weigh

  • Not every account type counts, and some are discounted in the calculation
  • Seasoning and sourcing requirements apply to the accounts reviewed
  • Program availability and terms vary by lender
  • Market movement in reviewed accounts can affect the figures during the process

Documents commonly reviewed

  • Recent statements for savings, brokerage, and eligible retirement accounts
  • Documentation of how larger balances were sourced
  • Any other income you would like considered alongside the assets
  • Property details and, for a purchase, the contract

Nothing on this page is a credit decision or an offer of credit. Program availability, terms, and eligibility are determined by the lender after a complete review.

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