A very close friend of mine, Tom Bonetto, wrote this piece on Asset Depletion Loans.  I really like the content so I asked him if I could post it on my blog site.  Naturally, he said yes.


Tom is also a lender at Equity Prime and he is licensed in Arizona and California.  Click here and you will go to his website.

Asset depletion is a method for calculating monthly income by dividing a borrower’s total assets by a set number of months.

  • What is an asset based loan?  Essentially the program takes your assets and spreads them over 360 months (or less in some cases) to create your monthly income in order to qualify for a mortgage loan.
  • Who should use this type of loan?  Those who are retired (or close to it)….or those with a liquid high net-worth.

Most importantly, the borrower is not required to cash in their assets as they’re only used to demonstrate an ability to make the mortgage and housing payments. 


mortgage Sea SawBorrowers who use an asset depletion program to qualify do not need to show any source of income or employment.  They can instead rely on asset depletion calculations based on a combination of cash, retirement, and investment monies divided by 360 payments.

Assets are generally qualified with 100% of cash accounts and 70% of retirement and investment accounts (100% of retirement funds may be used if the borrower is over 59 ½ years old).  For example, if a 45 year old borrower  has $2,000,000 in liquid assets, and another $1,000,000 in retirement and investment funds, then their qualifying monthly income would be $7,500 ($2,000,000 + $700,000 = $2,700,000; divided by 360 = $7,500).

Asset rich individuals who don’t want to provide a qualifying employment history or sufficient income may find this as an ideal solution.  Please reach out to me to learn more about asset depletion with Equity Prime and to determine whether this method will work for your specific transaction.

Happy House Hunting and please do not hesitate to call or e-mail if you have any questions.

Skype:  michael.nelson2014
NMLS:  1314188
Licensed in CA, CO, & FL
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Michael Nelson - Equity Prime