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Asset Depletion Mortgage Pennsylvania | Qualify on Liquid Assets
An asset depletion mortgage — also called an asset dissipation loan — allows borrowers to qualify for a home loan using their liquid assets instead of earned income. For retirees, recently retired executives, and high-net-worth borrowers with complex financial profiles, this product solves the most common mortgage obstacle: showing sufficient monthly income on paper.
How Asset Depletion Works
The lender divides your eligible liquid assets by a set number of months to calculate a monthly qualifying income. The standard formula used by most Non-QM lenders:
Eligible Assets ÷ 84 months = Monthly Qualifying Income
Example: A borrower with $1,260,000 in eligible assets would have a calculated monthly income of $15,000 — which can then be used to qualify for a mortgage just like earned income.
Who Asset Depletion Loans Are Designed For
- Retirees with significant savings or investment accounts but little or no earned income (no W-2, no Social Security that meets conventional minimums)
- Recently retired executives who haven’t yet established a consistent income stream from retirement accounts
- High-net-worth borrowers with compensation structures that don’t translate cleanly into mortgage qualifying income (deferred comp, RSU vesting schedules, carried interest)
- Business owners who pay themselves minimally on paper but hold substantial liquid assets outside the business
Eligible Assets
Not all assets count equally. Lenders apply different haircuts depending on the asset type:
- 100% eligible: Checking accounts, savings accounts, money market accounts, CDs
- 60–70% eligible: Investment accounts (brokerage accounts holding stocks, bonds, mutual funds, ETFs)
- 60–70% eligible: Retirement accounts (IRA, 401(k), SEP-IRA) — but only if the borrower is age 59½ or older. Early withdrawal penalties reduce the usable value.
Not eligible: Real estate equity, business assets, illiquid investments, vested stock options not yet exercised, restricted stock.
Asset Depletion vs. Social Security / Pension Income
If you receive Social Security, pension income, or required minimum distributions (RMDs), those income streams are generally used first in qualifying — asset depletion supplements rather than replaces documented income. A borrower with $3,000/month in Social Security plus $800,000 in eligible assets has a stronger profile than either component alone.
Non-QM Lenders for Asset Depletion in Pennsylvania
Asset depletion mortgages are Non-QM (non-qualified mortgage) products. They are not available through conventional lenders (Fannie Mae/Freddie Mac), FHA, or VA programs. Lena works with Non-QM lenders who offer asset depletion programs across Pennsylvania — from primary residences to vacation homes and investment properties.
Frequently Asked Questions
What is the minimum asset amount needed to qualify for an asset depletion mortgage in Pennsylvania?
There’s no universal minimum, but the asset calculation must produce enough monthly income to cover the mortgage payment plus other qualifying debts. For a $400,000 mortgage at current rates, a monthly payment of roughly $2,800–$3,200 (PITI) typically requires $240,000–$270,000+ in eligible assets at the 84-month formula, assuming no other debt. Lena can run a specific scenario based on your asset picture and target purchase price.
Do I have to liquidate my assets to use this loan program?
No. The assets are not liquidated — you keep them. The lender simply uses the calculated “depletion” as a formula to determine qualifying income. Your accounts remain intact throughout the process. You must verify the assets exist via bank and brokerage statements (typically 2–3 months of statements).
Are asset depletion mortgages available for investment properties in Pennsylvania?
Yes. Non-QM lenders who offer asset depletion programs typically allow it for primary residences, second homes, and investment properties. Rates and terms vary by occupancy type. Investment property loans carry higher pricing than primary residence loans under this program.
Explore Asset Depletion Financing in Pennsylvania
Lena Polnet works with Non-QM lenders offering asset depletion programs across Pennsylvania. Call (215) 364-7171 or use the form below to describe your situation and get a preliminary assessment.
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Lena Polnet, NMLS #17225 | Dynamic Funding Solutions, NMLS #17144 | Licensed in Pennsylvania and Florida. This is not a commitment to lend. Asset depletion mortgage programs are Non-QM products subject to lender-specific guidelines, underwriting approval, and market conditions. Program availability and terms subject to change.