Asset Depletion Mortgage Calculator: Qualify on Portfolio

Most jumbo buyers without a six-figure W-2 paycheck assume they cannot qualify for a conventional mortgage. The assumption is wrong. Asset depletion (also called asset dissipation) is the underwriting mechanism that converts a portfolio balance into imputed monthly income for DTI purposes, and it is how founders pre-exit, retired executives, family-office principals, and recent liquidity-event sellers actually clear the qualifying ratios on a $2M-$5M jumbo. The math is straightforward. The lender-specific variants are not. A dedicated calculator beats a generic PITI tool here because the inputs that drive the answer, eligible-asset haircut, retirement-account divisor, account-type weighting, are not in any standard mortgage calculator.

This guide walks through how an asset depletion mortgage calculator actually works in 2026: the standard formula, the lender-specific haircuts, the FICO and reserve requirements, two worked examples, and the rate premium versus a vanilla jumbo. For the broader four-calculator framework, see the mortgage calculator for high net worth buyers pillar.

Rate and program data current as of May 24, 2026. Asset depletion is a non-QM jumbo product; rates, haircuts, and divisors vary by lender and update without notice. Verify with a jumbo loan officer before sizing a loan. Primary regulatory and rate sources are linked at the bottom.

What is an asset depletion mortgage?

Per Fannie Mae's Selling Guide B3-3.1-09 and The Mortgage Reports' asset depletion overview, an asset depletion mortgage qualifies the borrower by converting eligible liquid assets into a stream of imputed monthly income, typically by dividing a haircut portfolio balance by the loan term in months. Minimum eligible assets generally start at $500K, with most HNW programs requiring $1M or more. The loan itself is a standard amortizing mortgage with a lien on the home, not on the portfolio.

The product solves a specific underwriting problem. A conventional jumbo wants two years of stable, documentable income, ideally W-2 or 1099 with consistent magnitude. A founder who has been paying themselves a modest salary while building equity in a private company does not produce that documentation, even with $5M in a brokerage account. A retired executive living off portfolio income and capital gains does not produce it either. Asset depletion is the underwriting bridge: the lender treats the portfolio as if the borrower will draw it down over the loan term, computes a monthly draw, and adds that synthetic income to whatever documented income exists.

The structure differs from asset based lending or a securities-backed line of credit. Asset depletion produces a conventional mortgage; the portfolio is never pledged or encumbered. The borrower retains full control of the account, continues to trade, and is free to liquidate or redeploy positions during the loan term. The lender simply uses the balance as a qualifying metric at origination.

How the asset depletion calculator math actually works

The standard formula has three inputs: the eligible-asset balance, the account-type haircut, and the divisor. Per industry guidance summarized by Quicken Loans' asset depletion guide, the dominant convention is 70% haircut on taxable brokerage, 60-70% haircut on retirement accounts, and a divisor equal to the loan term in months. A 30-year amortization divides by 360. A 15-year divides by 180.

The standard 70% / 360 formula

For a fully taxable brokerage portfolio:

Imputed monthly income = (Eligible assets × 0.70) / 360

A $4,000,000 taxable brokerage account at 70% haircut produces $2,800,000 of qualifying assets. Divided by 360 months, that is $7,778 of imputed monthly income. Add this to any documented W-2 or 1099 income; the lender uses the combined figure as the DTI numerator base.

A $1,500,000 taxable brokerage account on the same formula produces $1,050,000 qualifying / 360 = $2,917 of imputed monthly income. A $10,000,000 portfolio produces $19,444. The relationship is linear, which is what makes asset depletion attractive for ultra-HNW buyers: the imputed income scales directly with portfolio size, with no cap.

Retirement account treatment

Retirement accounts get treated differently depending on age. For borrowers age 59.5 or older, IRA and 401(k) balances typically get a 70% haircut, the same as taxable brokerage, because withdrawals are penalty-free. For borrowers under 59.5, the haircut tightens to 60-65% on most programs because the lender models a 10% early-withdrawal penalty plus deferred-income-tax friction. A 50-year-old with a $2,000,000 401(k) and a $1,500,000 taxable brokerage account on a 30-year loan would compute:

Taxable: $1,500,000 × 0.70 / 360 = $2,917
Retirement: $2,000,000 × 0.60 / 360 = $3,333
Total imputed: $6,250 per month

The same balances at age 60 would produce $2,917 + $3,889 = $6,806. The 9% lift reflects unlocked retirement-account access.

Lender-specific divisor variants

Not every lender uses the loan term as the divisor. Three common variants:

• Loan-term divisor (most common). Divide by 360 for a 30-year, 180 for a 15-year. Produces the highest imputed income.
• Borrower-age-to-85 divisor (conservative). Divide by (85 - borrower's age) × 12. For a 60-year-old, that is 25 × 12 = 300 months. Produces a slightly higher monthly figure than the 360 divisor for older borrowers.
• Fixed 240-month divisor (some non-QM programs). Divide by 240 regardless of loan term. Produces a higher monthly figure than 360, which can be the difference for borderline DTI cases.

The borrower-age variant matters most for older HNW buyers. A 70-year-old with a $3M portfolio using the 360 divisor gets $5,833 of imputed income; the same buyer using the (85-70) × 12 = 180 divisor gets $11,667. Twice the qualifying income on the same portfolio because the lender assumes a shorter depletion horizon.

The lender selection question matters more than most calculator inputs. Always ask the jumbo desk what divisor they use before running the numbers.

What lenders haircut and why

Per Fannie Mae's Selling Guide B3-3.1-09, the haircut exists to absorb three risks: market volatility on the portfolio, tax friction on liquidation, and transaction costs. Each asset class gets a different haircut based on those risks. Below is a representative table for a non-QM HNW asset depletion program in 2026.

Asset class	Typical haircut (eligible portion)
US Treasury notes and bills	90-100%
Investment-grade municipal bonds	80-90%
Diversified equity ETFs (VTI, VOO, VXUS)	70-75%
Large-cap individual stocks (S&P 500 names)	60-70%
Mid-cap and small-cap individual stocks	40-60%
Concentrated single-position holdings (>25% of account)	40-60%
International or sector ETFs	60-70%
Retirement accounts (age 59.5+)	70%
Retirement accounts (under 59.5)	60-65%
Restricted or post-IPO lockup shares	0%
Unvested RSUs	0%
Real estate (not the subject property)	0% (excluded from liquid)

A diversified $3M portfolio at the blended rate above might qualify with a 70% haircut. A $3M portfolio concentrated 80% in a single tech stock might only qualify at 50%, producing materially less imputed income. The composition of the account, not just the balance, drives the qualifying number.

Some lenders apply a further reduction for "seasoning," requiring assets to be held in the borrower's name for 60-90 days minimum before they count. This catches recent transfers, including post-exit liquidity events where the cash hit the account three weeks before application. The fix is timing: complete any asset transfers at least 90 days before submitting the mortgage application.

Who actually uses asset depletion mortgages?

Per The Mortgage Reports, asset depletion is concentrated in four borrower profiles, each with a structural reason traditional W-2 underwriting fails. The shared trait is meaningful balance-sheet wealth with thin documented income. Industry estimates suggest fewer than 5% of jumbo originations use asset depletion, but the share rises sharply at the $2M+ loan tier where W-2-only qualifying becomes binding for many wealthy applicants.

Founders pre-exit

A founder of a venture-backed company often pays themselves a below-market salary (a "founder salary" of $150K-$250K is typical even at unicorn-valuation startups) while holding paper wealth in equity that does not count for DTI until exit. A founder with $250K of W-2 income and $4M of liquid investments outside the company qualifies on roughly $20,833 monthly base + $7,778 imputed = $28,611 combined. That clears DTI on a $3M jumbo at 6.85%; the W-2 alone does not.

Retired executives

A 62-year-old retired tech executive with a $6M portfolio and $80K of social security and pension income has documented monthly income of $6,667. Asset depletion converts the $6M portfolio at 70% / 360 into $11,667 of additional imputed income. Combined $18,333 monthly is sufficient for most jumbo loans up to $3M. The retired executive can buy a new primary residence (downsize, relocation, second-home conversion) without liquidating positions to satisfy a W-2-style underwriter.

Family-office principals

Principals of single-family offices draw irregular distributions, manage holdings through LLCs and trusts, and rarely produce two years of consistent personal W-2 income. Asset depletion lets the underwriter qualify against the verifiable liquid balance sheet instead of fighting through K-1s, partnership distributions, and entity flow-through.

Recent liquidity-event sellers

A founder or executive who recently sold a company and received $15M of cash has substantial balance-sheet wealth but no recent documented income, the proceeds hit a brokerage account, the company shuts down, and W-2 stops. Asset depletion qualifies them on the cash. The seasoning requirement (60-90 days) means timing the application correctly matters; submitting the day after the cash lands does not work at most lenders.

Two worked examples

Concrete numbers. Both examples use a 30-year fixed asset depletion jumbo at 7.00% (typical 2026 pricing for a 700+ FICO non-QM jumbo at 70% LTV, between the Freddie Mac PMMS 30-year jumbo and the upper bound for a non-QM product per Freddie Mac's PMMS).

Example one: pre-exit founder

Buyer: 38-year-old founder, $200K W-2, $3.5M taxable brokerage (diversified), $750K in a Roth IRA (under 59.5). Target purchase: $2.4M primary residence, 25% down ($600K from cash and partial brokerage liquidation), $1.8M loan.

Imputed income calculation:

• Taxable: $3,500,000 × 0.70 / 360 = $6,806 per month
• Retirement (under 59.5): $750,000 × 0.60 / 360 = $1,250 per month
• W-2: $200,000 / 12 = $16,667 per month
• Combined qualifying income: $24,723 per month

DTI check at 6.85%:

• PITI on $1.8M at 6.85%, 30-year, 1.2% effective property tax, $4,000 annual insurance: approximately $14,300 monthly
• Existing debts (auto, no other mortgage): $800 monthly
• Total debt: $15,100 monthly
• DTI: $15,100 / $24,723 = 61%

This fails the typical 43% DTI cap. Two fixes: increase down payment to lower PITI, or extend to a non-QM lender with a 50% DTI ceiling (many asset depletion programs allow 45-50% DTI when reserves are strong). At 25% down with a 50% DTI cap, this buyer scrapes through. The W-2 alone ($16,667) against $15,100 PITI + debt would have been 91% DTI, which no lender approves. Asset depletion makes the deal work; the underlying ratios are still tight.

Example two: post-exit principal

Buyer: 52-year-old recent liquidity-event seller, no current W-2 (company sold 14 months ago), $8M taxable brokerage, $1.5M in a traditional IRA (under 59.5). Target purchase: $3.5M primary residence, 30% down ($1.05M from cash), $2.45M loan.

Imputed income calculation:

• Taxable: $8,000,000 × 0.70 / 360 = $15,556 per month
• Retirement (under 59.5): $1,500,000 × 0.60 / 360 = $2,500 per month
• W-2: $0
• Combined qualifying income: $18,056 per month

DTI check at 6.85%:

• PITI on $2.45M at 6.85%, 30-year, 1.0% effective property tax, $6,000 annual insurance: approximately $19,800 monthly
• Existing debts: $1,200 monthly
• Total debt: $21,000 monthly
• DTI: $21,000 / $18,056 = 116%

This fails badly. The structural issue: the $8M portfolio is large but the 360-month divisor flattens it across the full loan amortization. Two fixes available. Use a borrower-age-to-85 divisor: (85-52) × 12 = 396 months produces lower imputed income, worse. Use a 240-month divisor where available: $8M × 0.70 / 240 = $23,333 plus $1.5M × 0.60 / 240 = $3,750, combined $27,083 imputed. New DTI: $21,000 / $27,083 = 77.5%. Still fails.

The honest answer for this borrower: asset depletion on a conventional mortgage does not clear DTI at this loan size against this portfolio. The fix is a different structure. A 50% down payment ($1.75M) drops the loan to $1.75M, PITI to roughly $14,500, total debt to $15,700, DTI on the 360-divisor imputed income to 87%, still high. A portfolio-funded approach using a Pledged Asset Line or SBLOC mortgage structure often fits this profile better; the lender's qualifying math collapses to "do you have enough collateral," not "do you have enough imputed income."

The lesson from example two: asset depletion has a ceiling. For very large loans against portfolios under roughly 4-5x the loan size, the math breaks. The right call is to run the calculator early, see the constraint, and pivot to a portfolio-secured structure if asset depletion math does not clear.

Rates, FICO, and program parameters in 2026

Per Quicken Loans and The Mortgage Reports' coverage of non-QM jumbo programs, asset depletion mortgages in 2026 sit in a typical band: 6.25% to 8.50% on 30-year fixed depending on FICO, LTV, and reserve posture. The Freddie Mac PMMS standard 30-year sits in the mid-6% range. Asset depletion programs price 25-100 basis points above that, reflecting non-QM secondary-market liquidity and the borrower profile.

Typical 2026 program parameters

• FICO minimum: 680 floor, 720+ unlocks the best pricing
• Maximum LTV: 75-80%, with some programs allowing 85% on smaller loans
• DTI ceiling: 43% standard, 45-50% on the most flexible non-QM programs
• Minimum eligible assets: $500K floor, $1M typical, $2M+ for the best pricing tier
• Reserve requirements: 12-24 months of PITI in liquid reserves on top of qualifying assets
• Asset seasoning: 60-90 days for taxable accounts at most lenders
• Maximum loan size: typically capped at $3M-$5M on standard programs, higher on portfolio-direct private-bank channels

The rate premium versus a vanilla jumbo is real but not punitive. For a $1.8M loan at 6.85% (vanilla jumbo) versus 7.25% (asset depletion non-QM), the annual interest difference is roughly $7,200, or $216K over a 30-year term assuming no refi. For a buyer who could not otherwise qualify, the premium is the price of access.

When the rate premium reverses

A few situations where asset depletion pricing is competitive or even favorable. First, ultra-HNW borrowers with $10M+ in pledged-eligible assets often qualify for private-bank asset depletion programs at conventional jumbo pricing, the bank takes the relationship value into account. Second, super jumbo asset depletion loans above $3M often price competitively because the borrower profile (large balance sheet, low LTV) is exactly what portfolio lenders want. Third, hybrid asset depletion plus restricted-stock collateral structures sometimes price below standard jumbo if the lender wants the broader relationship.

When asset depletion is the wrong tool

Three profiles where asset depletion is technically available but a different structure fits better.

The portfolio is too small relative to the loan. Below roughly 4x portfolio coverage of the loan amount, asset depletion math gets thin. A $1M portfolio supporting a $1.5M loan produces $1,944 of imputed monthly income, rarely enough on its own. The fix is either a larger down payment, a smaller loan, or a different qualifying path.

The borrower has strong W-2 income. A buyer with $500K of documented W-2 income usually does not need asset depletion to qualify, even on a $2M jumbo. Adding asset depletion to the application sometimes triggers a non-QM rate premium that the borrower did not need to pay. Run a standard jumbo mortgage calculator on the W-2-only numbers first; if DTI clears under 43% without invoking imputed income, the vanilla jumbo is the cheaper path.

The deal would close better through a portfolio-secured structure. For buyers with substantial pledge-eligible taxable assets and high tax brackets, a pledged asset line or SBLOC often beats asset depletion on after-tax effective cost, particularly above the $750K acquisition cap per IRS Publication 936. The portfolio-secured path does not require DTI qualifying at all in the conventional sense; it requires collateral coverage. For comparison logic on the financing structures, see the HNW home buyer financing guide.

The borrower wants the broadest possible refi optionality. Asset depletion non-QM products often have shorter refi windows and tighter rate-and-term refi guidelines than vanilla jumbos. A borrower planning to refi within 2-3 years should confirm the program's prepayment and refi terms before committing.

How to actually run the calculator

Five steps to a defensible asset depletion qualifying estimate.

1. Inventory eligible assets. Pull current balances on every taxable brokerage account, money market, retirement account, and any other liquid investment. Exclude home equity, private company equity, restricted shares, unvested RSUs, and assets in trusts you do not directly control. The lender will exclude them too.

2. Apply asset-type haircuts. Use 70% on diversified taxable brokerage. Use 60-65% on retirement accounts if under 59.5, 70% if older. Apply concentration discounts for any single position above 25% of an account. Use 85-95% on Treasury holdings and investment-grade bonds.

3. Divide by the loan term in months. 360 for a 30-year, 180 for a 15-year. If you are over 60, ask the lender whether they offer a (85-age) × 12 divisor or a fixed 240-month divisor. Younger borrowers should stick with the 360-divisor as the baseline.

4. Add documented income. W-2, K-1 average, RSU vest average, partnership distributions, pension, social security. The imputed asset depletion income is additive to these, not a replacement.

5. Compute DTI against PITI plus existing debt. Standard target: 43% or below. Stretch ceiling: 50% on flexible non-QM programs with strong reserves. If the answer is above 50%, asset depletion alone will not work; consider a larger down payment, smaller loan, or a portfolio-secured structure.

A dedicated asset depletion calculator standardizes this against a particular lender's program. The arithmetic is simple; the program parameters are what vary.

When to consult a professional

The calculator gives a defensible qualifying estimate, but the actual answer comes from the jumbo desk. Lender-specific haircuts, divisors, seasoning rules, and DTI ceilings vary materially. Two lenders looking at the same portfolio and the same loan can produce qualifying answers that differ by 20-30% on imputed income, and one can approve while the other declines.

For loans above $1M, the calculator output is the input to a conversation with a non-QM jumbo loan officer or private-bank relationship manager who can confirm what their specific program accepts, at what rate, and against what reserve requirement. A CPA confirms the after-tax cost of the loan against the buyer's marginal rate (the $750K acquisition cap under IRC Section 163(h)(3) still applies). A fiduciary financial advisor confirms whether asset depletion fits the broader balance-sheet plan, particularly for borrowers within ten years of retirement, where the portfolio's compounding role becomes more sensitive to mortgage carry.

Stockstead publishes educational content and runs calculators that model the math. Stockstead does not provide investment, tax, or legal advice. For the full disclosure, see the disclaimers page.

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Sources and further reading

• Fannie Mae — Selling Guide B3-3.1-09: Other Sources of Income
• Federal Housing Finance Agency — Conforming Loan Limits
• IRS Publication 936 — Home Mortgage Interest Deduction
• Consumer Financial Protection Bureau — Ability-to-Repay and Qualified Mortgage Standards
• Quicken Loans — Asset-Depletion Mortgage Guide
• The Mortgage Reports — Asset Depletion Mortgage Guide
• Federal Reserve Bank of New York — SOFR Reference Rates
• Freddie Mac — Primary Mortgage Market Survey

Rates, haircuts, and program parameters current as of May 24, 2026. Asset depletion is a non-QM jumbo product; pricing, divisors, and underwriting variants change without notice and differ by lender. Verify with a jumbo loan officer before sizing a loan. Educational, not financial advice. Stockstead publishes educational content for HNW home buyers and is not a licensed financial advisor, tax advisor, or mortgage broker. Consult a fiduciary advisor, a CPA, and a licensed loan officer before committing to any financing structure.