Asset depletion loan vs. Bank statement loan
Both are non-QM loans that skip tax returns, but they read different strengths. An asset-depletion loan converts your liquid assets into qualifying income with a formula (assets ÷ loan term). A bank statement loan reads 12–24 months of business deposits. One rewards a big balance sheet; the other rewards steady cash flow.
If you're asset-rich but have lumpy or low income, asset depletion fits. If you have strong, consistent deposits but modest savings, bank statement fits.
Side by side
| Factor | Asset depletion loan | Bank statement loan |
|---|---|---|
| Qualifies on | Liquid assets ÷ loan term (imputed income) | Business deposits × (1 − expense factor) |
| Income docs | None — asset statements instead | 12–24 months of bank statements |
| Down payment | 20–30% typical | 10–20% typical |
| Minimum credit | 620–700+ | 620–660+ |
| Ideal borrower | Large liquid portfolio, irregular income | Strong steady deposits, fewer assets |
| Reserves | Effectively the basis of the loan | 3–12 months PITI typical |
Figures are representative ranges, not quotes, and vary by lender. Read the full guides: Asset depletion loan · Bank statement loan.
Who should pick asset depletion loan
Retirees, traders, and high-net-worth borrowers with substantial liquid assets but little or erratic documented income — the portfolio does the qualifying.
Who should pick bank statement loan
Active self-employed borrowers with consistent business deposits whose tax returns understate income — but who haven't accumulated large liquid reserves.
Bottom line
Still deciding? Take the 5-question loan quiz, compare every option on the loan types page, or size a purchase with the affordability calculator.
FAQ
Typically eligible liquid assets divided by the loan term in months (often 360 for a 30-year loan). $720,000 in qualifying assets ÷ 360 = $2,000/month of imputed income. Lenders may discount retirement or volatile assets before applying the formula.
Some lenders let you blend an asset-depletion figure with documented income to qualify for more. Ask whether a lender supports a combined analysis — it can meaningfully raise your qualifying income.
Educational information only — not financial advice, and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.