Retiree · asset-depletion · 740 · no job income
| Borrower | Retiree with large liquid savings |
| Self-employed | N/A |
| Credit | 740 |
| Program | Asset-depletion (asset-qualifier) loan |
| Price | $550,000 (illustrative) |
| Down payment | 30% |
| State | AZ |
| Outcome | Approved |
The scenario
This borrower had retired with a substantial investment and retirement portfolio but modest, irregular taxable income. Conventional underwriting struggled with the lack of steady monthly income, even though the borrower's net worth was high and their housing payment would have been a small fraction of their assets.
An asset-depletion program converted their liquid assets into a qualifying-income stream by dividing eligible assets over a set number of months. That synthetic income, combined with a 740 score and 30% down, supported the purchase without any employment or pay stubs.
What made it work
- Large, well-documented liquid and retirement accounts
- Assets divided into a monthly qualifying-income figure
- 30% down lowered risk and improved pricing
- 740 credit score and strong reserves
Lessons you can use
Assets can become income
Asset-depletion (sometimes called asset-qualifier) programs take eligible liquid assets and spread them across a fixed period to create a monthly income figure. A borrower with a strong balance sheet but a weak income statement — common for retirees and people between ventures — can qualify on what they have rather than what they earn.
Not every dollar counts equally
Lenders typically haircut certain assets (retirement accounts subject to early-withdrawal penalties, for example) and may exclude funds needed for the down payment and reserves. Knowing which assets count, and at what percentage, lets a borrower structure accounts to maximize qualifying income.
Reserves are the whole point
Because the program is built on assets, strong post-closing reserves are both required and reassuring to the underwriter. A borrower who keeps ample liquidity after the down payment presents a low-risk file even with no traditional income — the opposite of a thin-reserve conventional applicant.
Your next step
If this scenario rhymes with your situation, start with Compare all loan types for the full picture, then run your own numbers with the Non-QM loan finder. Every real application is different — use these scenarios to learn the patterns, then confirm specifics with a licensed loan officer.
This profile is a composite educational scenario created by Mortgage Merlin editorial staff — not a real person, transaction, or testimonial. Figures are illustrative and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.