Asset depletion loan
A non-QM program that converts liquid assets into qualifying income using a formula: eligible assets ÷ loan term in months (typically 360 for a 30-year loan). A borrower with $720,000 in liquid assets could be credited with $2,000/month of qualifying income with no employment income required.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.