Asset Depletion is a qualification method using liquid investable assets divided by a term (typically 36-120 months) to derive a qualifying income figure. Used by high-net-worth borrowers without traditional W-2 income on Non-QM and asset-utilization programs. The depletion period and asset-haircut vary by program — common haircuts run 100% of cash, 80% of stocks, 70% of retirement accounts. Useful when conventional income docs understate the borrower''s true financial capacity.
Underwriting