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Playbooks

The Asset Depletion Playbook

Turning liquid assets into qualifying income: how the depletion formula works, which accounts count, and when this beats every income-based path.

· 1 min read

Outline — pending named byline + LO review.

Who this is for

  • Asset-rich, income-light borrowers (retirees, between ventures)
  • Borrowers with large brokerage / retirement balances

How the math works

  • The depletion formula: eligible assets ÷ term = monthly income
  • Which accounts count and at what percentage (haircuts on retirement / equities)
  • Seasoning and sourcing of the assets

Scenario examples

  • [Retiree, large brokerage account, DSCR shortfall covered by depletion]

Qualification matrix

Representative asset-depletion parameters (to verify)
Asset typeEligible %Notes
Cash / money marketHighest inclusion
EquitiesHaircut applies
Retirement (pre-age)Larger haircut

What typically goes wrong

Indicative rate range

Add once LO-reviewed.

Estimates only. Actual rates, terms, and approval subject to lender underwriting, appraisal, and qualifying criteria.

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