Asset Depletion Mortgage FAQs

NASB’s Asset Depletion Mortgage is designed for borrowers with substantial assets—such as retirees, high‑net‑worth individuals, and self‑employed borrowers with limited verifiable income. This option typically works best when assets can cover the monthly payment even if taxable income is low.

At NASB, Asset Depletion Mortgages are part of our Non‑QM offerings and are asset-based. In general, Non‑QM loans offer flexibility for borrowers whose documentation does not meet standard agency guidelines.

NASB’s Asset Depletion Mortgage can qualify borrowers who do not want to rely on employment income, with eligible assets serving as the primary basis for repayment. Generally, asset-based qualification reduces reliance on W‑2s, pay stubs, or tax returns when assets are sufficient.

NASB’s Asset Depletion Mortgage qualifies borrowers using eligible assets, while our Bank Statement Loan qualifies borrowers using deposits and an expense factor. Generally, asset depletion focuses on wealth and holdings, whereas bank statement lending focuses on cash flow from deposits.

NASB’s Asset Depletion Mortgage (also called an asset dissipation loan) is a Non‑QM home loan that allows you to qualify based on eligible assets rather than employment income. Generally, asset depletion loans convert verifiable liquid assets into a monthly qualifying income figure for underwriting.

NASB generally requires a minimum credit score of 700 for its Asset Depletion Loan program. Stronger credit profiles can improve pricing and available terms.

NASB requires a minimum loan amount of $175,000 for Asset Depletion Mortgages, with exceptions for specific properties in the Greater Kansas City metro area and surrounding areas. In general, many Non‑QM programs set minimums to align with portfolio guidelines and operational costs.

The NASB Asset Depletion Mortgage allows qualified borrowers to borrow up to $1,000,000, subject to underwriting and eligibility. Generally, maximum loan amounts vary by program, credit profile, and collateral risk.

The NASB Asset Depletion Loan typically requires at least 20% down payment, depending on credit profile and overall file strength. Generally, Non‑QM loans require larger down payments than conventional mortgages to manage risk.

NASB’s Asset Depletion Mortgage requires eligible assets (such as non‑business liquid assets or certain retirement assets with current distributions) to qualify. Generally, lenders focus on assets that are verifiable, accessible, and reasonably convertible into qualifying income.

NASB’s Asset Depletion Mortgage is typically based on non‑business liquid assets; business assets may require additional review and may not be eligible. Lenders generally prefer personal assets because ownership and access are clearer for repayment planning.

NASB calculates asset depletion by verifying eligible funds and dividing the qualifying balance by 84 months to determine a monthly income figure for underwriting. Generally, asset depletion programs divide eligible assets over a set number of months to create an income-equivalent used for qualification.

NASB typically uses 70% of the value of stocks, stock options, and mutual funds when determining qualifying assets. Lenders generally apply a haircut to market-based assets to account for volatility.

NASB can consider cash-like assets, such as checking, savings, and money market accounts, as qualifying assets when they are documented and eligible. Generally, cash accounts are among the most straightforward assets to use because they are liquid and stable.

NASB may consider retirement accounts for asset depletion when they meet eligibility requirements (for example, accounts with current distributions). Generally, retirement assets may be discounted or require additional documentation, depending on access restrictions and penalties.

NASB can evaluate multiple eligible accounts together when they are verifiable and owned by the borrower. Generally, combining assets can increase the qualifying income calculation and strengthen the overall file.

NASB can consider asset depletion alongside other qualifying income sources to strengthen the application. Generally, combining income sources can improve DTI and provide additional underwriting support.

NASB may request documentation supporting asset ownership and sources of funds as part of standard underwriting. Generally, lenders verify that assets are owned by the borrower and not borrowed or temporary.

NASB reviews account statements and applies program rules (such as market-asset discounts) to manage volatility. Because market-driven assets can fluctuate, lenders use conservative calculations to determine qualifying income.

NASB typically requires asset statements, standard identification, credit documentation, and property/transaction documents to approve an Asset Depletion Mortgage. The exact documentation varies by loan purpose, property type, and the assets used.

NASB’s Asset Depletion Mortgage is designed to qualify based on assets, so tax returns or W‑2s may not be required if assets sufficiently support qualification. Generally, Non‑QM asset‑based programs reduce reliance on employment‑income documents, though other verification may still apply.

NASB’s closing timeline is often similar to that of standard mortgages—typically around 30 days—depending on appraisal and document turnaround. Generally, providing complete asset statements early helps keep underwriting on schedule.

NASB offers Asset Depletion Mortgages for eligible purchase and refinance scenarios, subject to guidelines and underwriting. Generally, asset depletion programs can be used for purchases, rate-and-term refinances, and some cash-out refinances, depending on program rules.

NASB’s underwriters verify asset eligibility, apply program discounts, and evaluate credit and collateral to confirm repayment ability. Generally, asset-depletion underwriting focuses on documentation quality, asset liquidity, and overall risk layering.

Because Asset Depletion Mortgages use an alternative qualification, NASB’s rates are typically higher than those of conventional mortgages but remain competitive within Non‑QM lending. Generally, pricing is based on documentation type, credit score, LTV, reserves, and loan size.

NASB prices Asset Depletion Mortgages based on credit score, loan‑to‑value (LTV), reserve strength, asset composition, loan amount, and transaction type. Generally, lower LTV and more substantial credit/reserves improve pricing in Non‑QM programs.

NASB does not charge prepayment penalties.

NASB’s MI requirements depend on LTV and program structure; your loan officer will confirm what applies to your file. Generally, many Non‑QM programs manage risk through down payment and pricing rather than traditional MI.

NASB loan officers can help you compare Asset Depletion with Bank Statement, 1099, DSCR, and other Non‑QM programs to align with your goals. Generally, the best program depends on which qualification factor you qualify under most strongly: assets, deposits, earnings statements, or property cash flow.

NASB’s program availability varies by location and property eligibility; your loan officer will confirm current availability for your state and property type. Generally, Non‑QM availability depends on program rules, licensing, and collateral eligibility.

NASB has in-house underwriting, supporting borrowers with dedicated lending guidance and a streamlined process for Non‑QM programs. Generally, lender experience and consistent underwriting help keep complex loans moving efficiently.