Asset Depletion Mortgages in Austin, TX
- Qualify with assets
- Non-QM
- Purchase or refinance (varies by lender)
- Texas
Some of the strongest borrowers I talk to have very little income on paper. They’ve retired early, sold a company or built up a brokerage account, and a standard loan application doesn’t know what to do with them. Asset depletion is built for that file. It’s part of our non-QM loan options.
Asset Depletion Mortgages: when it fits and when to look elsewhere
| Loan category | Non-QM |
|---|---|
| Who it’s for | Retirees, early retirees and people with significant savings or investments but low or irregular income |
| How income or eligibility is shown | Eligible account balances converted to a monthly qualifying income figure |
| Property types | Owner-occupied, second home or investment (varies by program) |
| Fits when | You have large savings or investment balances · You’re retired or between jobs · Your income is hard to document |
| Look elsewhere when | You have steady W-2 income. A conventional loan may fit. · Your wealth is mostly in illiquid property |
| Lenders compared | More than 50 wholesale lenders |
The short answer: An asset depletion mortgage lets you qualify for a home loan using your savings, brokerage or retirement balances instead of a paycheck. The lender converts eligible assets into a monthly qualifying income figure, and the formula varies by lender. CapFi Lending is an Austin mortgage broker licensed to make loans anywhere in Texas, and we compare asset depletion programs across more than 50 wholesale lenders.
Asset depletion vs bank statement loan
| Asset depletion | Bank statement loan | |
|---|---|---|
| What qualifies you | Eligible account balances converted to monthly income | Deposits into your business or personal bank accounts |
| Typical borrower | Retirees, early retirees, people after a liquidity event | Self-employed borrowers with ongoing business income |
| Ongoing income needed | Not necessarily | Yes, shown through deposits over time |
| Accounts reviewed | Checking, savings, brokerage, often retirement (some at reduced value) | Bank statements over a lender-set period |
| How the math works | Assets divided over a set number of months; varies by lender | Deposits averaged, sometimes with an expense factor; varies by lender |
| Tax returns | Usually not the basis for income | Usually not the basis for income |
| Can be combined | Some lenders allow pairing with other income | Some lenders allow pairing with other income |
How lenders turn assets into income
In general, a lender totals your eligible assets, may subtract the down payment, closing costs and any required reserves, may discount some account types, then divides what’s left over a set number of months. The result is treated like monthly income when the lender reviews your debt-to-income ratio. Every step in that formula, including which discounts apply and the number of months, varies by lender. That’s why the same balance can qualify you for very different amounts at two lenders.
Which assets usually count
- Checking and savings accounts
- Brokerage accounts (stocks, bonds, mutual funds)
- Retirement accounts such as IRAs and 401(k)s, often at a reduced value
What counts and how much of it counts varies by lender. Real estate equity and other illiquid assets usually aren’t treated the same way as cash or securities.
Who it fits in Austin
- Retirees and early retirees who live on savings rather than a paycheck
- Equity-rich tech workers between roles or after a liquidity event
- Business sellers with sale proceeds but no current W-2
Fits when
- You have large savings or investment balances
- You’re retired or between jobs
- Your income is hard to document
Look elsewhere when
- You have steady W-2 income. A conventional loan may fit.
- Your wealth is mostly in illiquid property
Documents to gather
- Recent statements (all pages) for each asset account
- Government-issued ID
- Property information (contract or address)
Your loan officer will tell you if a specific lender needs anything else.
How CapFi shops asset depletion
I compare asset depletion programs across more than 50 wholesale lenders and look at how each one would treat your actual accounts. If the right fit is a lender we don’t yet work with, we can sign them up. Asset depletion also pairs with other programs, such as jumbo loans for higher-priced Austin homes or an interest-only payment structure, depending on the lender. Self-employed borrowers can also compare bank statement and other self-employed options.
FAQs
What is an asset depletion mortgage?
It is a non-QM loan where a lender converts eligible assets, like savings or investment accounts, into a monthly qualifying income figure instead of relying on pay stubs or tax returns. How assets are counted, and which accounts qualify, varies by lender, so the same balances can qualify differently at different lenders.
Can retirees in Austin use asset depletion?
Often, yes. Retirees with eligible assets may qualify even with little monthly income. Eligibility, the assets that count and terms vary by lender, so CapFi Lending compares options across more than 50 wholesale lenders to find the right fit for your accounts and the home you want to buy.
Do I have to spend down my assets to use an asset depletion loan?
No. The lender uses your balances to calculate a qualifying income figure; it doesn’t require you to withdraw or spend the money. You keep managing your accounts as usual after closing. The lender does want to verify the funds are yours and available, so expect to provide full statements. How each account is counted varies by lender.
Can I use retirement accounts for asset depletion if I’m under retirement age?
Some lenders allow it. Many count IRAs and 401(k)s at a reduced value to account for taxes and early-withdrawal penalties, and some apply different rules depending on your age. Because those discounts vary by lender, the same 401(k) can produce very different qualifying income at two lenders, which is why I compare several before recommending one.
Can I combine asset depletion with Social Security, a pension or part-time income?
Often, yes. Some lenders let you add asset-based income alongside documented income such as Social Security, a pension or a part-time job. That combination can help when neither source alone is enough. Whether income can be blended, and how, varies by lender, so we review all your sources together before choosing a program.
Does asset depletion work for an investment property or second home in Texas?
Some programs allow second homes and investment properties, not just a primary residence. Eligibility by occupancy varies by lender and program. If you’re buying a rental, we’ll also compare a DSCR loan, which qualifies on the property’s rent, so you can see which approach fits the purchase and keeps more of your cash where you want it.
Can I refinance my Austin home using asset depletion?
Yes, some lenders offer asset depletion on refinances as well as purchases. That can help retirees who want to change their loan but no longer have pay stubs. Cash-out availability and terms vary by lender, and Texas homestead rules apply to cash-out on a primary residence, so we confirm what’s allowed for your property first.
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Program availability, eligibility and terms are set by each lender and vary by lender and scenario. This is not a commitment to lend.
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