Simplest Way to Qualify for a $110,000,000 Mortgage

The Income Problem for Asset-Rich Borrowers

Standard mortgage underwriting is built around income. The debt-to-income ratio — the percentage of your gross monthly income that goes to debt payments — is the primary qualifying metric for most loan programs. For borrowers with strong income, this works well. For borrowers who have accumulated significant wealth but take minimal income — retirees, business owners who reinvest profits, investors who live off capital gains — the standard income-based approach can produce a qualifying income that does not reflect their actual financial strength.

Asset depletion programs solve this problem by treating liquid assets as a source of income for qualifying purposes. The logic: if you have $5 million in liquid assets and you are applying for a 30-year mortgage, you could theoretically draw down those assets over 360 months to make the payments. The lender calculates a monthly income figure based on this logic and uses it in the DTI calculation.

How the Calculation Works

The basic asset depletion calculation divides eligible assets by the loan term in months. On a 30-year loan, that is 360 months. If you have $3,600,000 in eligible liquid assets, the monthly qualifying income from asset depletion would be $10,000 per month. This income can be combined with any documented income you do have (Social Security, pension, rental income) to reach the total qualifying income.

The specific calculation varies by lender and program. Some lenders apply a haircut to retirement accounts (typically 30% to 40%) to account for the tax liability on withdrawals. Others exclude retirement accounts entirely. Some programs require the assets to remain in the account after closing; others allow them to be used for the down payment and closing costs with the remaining balance used for depletion.

Eligible Assets

Eligible assets for depletion programs typically include checking and savings accounts, money market accounts, certificates of deposit, and taxable investment accounts (stocks, bonds, mutual funds). The value used is typically the current market value, which means the calculation can change if the market moves between application and closing.

Retirement accounts (IRAs, 401(k)s) are treated differently. Some programs include them at a reduced value to account for the tax liability on withdrawals. Others exclude them. Vested stock options, restricted stock units, and business interests may or may not be eligible depending on the program.

Where to Find Asset Depletion Programs

Asset depletion is a portfolio program — it is not available through standard Fannie Mae or Freddie Mac guidelines. You will find it at credit unions, community banks, and private lenders that hold loans in their own portfolios. The rate on an asset depletion loan is typically higher than a comparable agency loan because the lender is taking on a non-standard risk profile.

For borrowers who need this type of program, the rate premium is not a barrier — it is the cost of accessing a program that makes the loan possible at all. A planning review can help you understand whether asset depletion is the right approach for your situation and which lenders offer programs that fit your asset profile.