Asset Depletion Loans

Asset depletion loans in Florida convert your savings and investments into qualifying income, so you can borrow without a paycheck or a tax return.

Key features of asset depletion loans in Florida

• Your eligible assets are divided across the loan term to produce a monthly figure
• That figure counts as qualifying income
• Stocks, bonds, mutual funds and retirement accounts all count
• No employment or income documentation
• Most programs want at least $500,000 in qualifying assets
• Down payment of 20% or more is typical
• Primary residence and second home

Two numbers decide everything: the haircut and the divisor

The headline calculation sounds simple. In practice, two adjustments do most of the work, and lenders apply them very differently.

The haircut. Nobody counts your balances at face value. Brokerage holdings are usually taken at 70% to 80%, because their value moves. Retirement accounts get cut further if you are under 59 and a half, since reaching that money early triggers a penalty, and some lenders exclude those accounts entirely until you pass that birthday. Cash in a checking or savings account normally counts at or near 100%.

The divisor. Some lenders spread the assets across 360 months, matching a 30-year term. Others use 240, and a few use your remaining life expectancy. That choice changes your qualifying income enormously. Take $1,000,000 in eligible assets: at 360 months it yields about $2,778 a month, while at 240 it yields $4,167. Same assets, roughly 50% more borrowing power.

Therefore never accept the first calculation as the answer. Ask each lender which haircut and which divisor it applies, then compare the resulting income rather than the rate. A slightly higher rate from a lender using a 240-month divisor may be the only offer that approves you at all.

What you still need

• Two or three months of statements for every account you want counted
• Evidence the assets are genuinely yours and liquid, so funds tied up in a business or a trust may not count
• Money for the down payment and closing costs held separately from the assets being depleted, since a lender will not count the same dollars twice
• Credit and reserves, exactly as on any other loan

Who this suits

• Retirees with substantial assets and little reported income
• High-net-worth borrowers between roles
• Business owners holding significant liquid assets outside the company
• Buyers who could pay cash but would rather keep the money invested

Florida-specific notes

• Florida’s retiree population makes this one of the more common non-QM routes here
• Snowbirds converting a second home into a full-time residence use it regularly
• Because Florida levies no state income tax, drawing on assets creates no additional state liability
• If you also hold rental property, compare a DSCR loan, which ignores personal finances altogether

Figures above are illustrative. Asset depletion sits outside agency guidelines, so haircuts, divisors and minimum balances vary by lender and change often. The CFPB owning a home guide covers comparing offers.