Asset Depletion Mortgages In Delaware: Which Assets Count — The Quick Read: Asset depletion turns your liquid savings, brokerage holdings, and retirement accounts into a monthly income figure a lender can qualify against. Not every account counts the same way. Cash and CDs count in full. Retirement funds get discounted. Business funds, gifts, and crypto generally don’t count at all. This is national program guidance — Delaware borrowers should confirm current availability with a broker before applying.
Here’s something to know first: Lendmire’s consumer mortgage lending currently runs through licensed channels in 16 states. Delaware isn’t one of them today. That could change. So if you’re financing a property in Delaware, don’t rely on a national guideline. Instead, have a direct conversation about what’s actually available to you right now. Everything below describes how asset depletion programs work across the wholesale network broadly — it’s not a Delaware-specific product.
What Asset Depletion Actually Does
Asset depletion is a documentation method, not a loan type. It lets a borrower with strong savings but thin reported income qualify using a calculated monthly income figure instead of pay stubs or traditional personal-income documentation.
This matters most for retirees, recent business sellers, and investors. Their traditional income documents often understate what they actually make. Take a borrower sitting on a large brokerage account but showing modest W-2 or 1099 income. A standard lender often rejects that borrower based on income alone. Asset depletion solves this problem by looking at the balance sheet instead of the income statement.
It’s one path inside a broader non-QM category — loans built outside conventional agency rules for borrowers whose financial picture doesn’t fit a standard box. Some readers land here comparing it against DSCR loans, which qualify on a rental property’s own cash flow instead of the borrower’s balance sheet at all. They solve different problems for different borrowers.
Key Terms Defined
Asset depletion: an underwriting method that converts a borrower’s eligible liquid assets into a monthly qualifying income figure, used in place of traditional pay documentation.
Divisor: the number of months a lender divides eligible assets by to produce that monthly income figure — a shorter divisor produces more qualifying income from the same asset pool.
Liquid assets: cash, CDs, publicly traded stocks, bonds, mutual funds, and retirement accounts that can be verified and, in most cases, accessed without a long delay.
DTI (debt-to-income ratio): total monthly debt obligations divided by qualifying monthly income, the ratio most lenders use to size how much debt a borrower can carry.
Reserves: liquid funds a borrower must hold, verified and untouched, after closing — proof there’s a cushion if income or cash flow dips.
How the Calculation Actually Works, Step by Step
The math runs in a set order: tally eligible assets, apply asset-type discounts, subtract funds already spoken for, then divide by a program-specific number of months.
Step 1 — count what’s eligible. Cash, savings, CDs, publicly traded securities, and retirement accounts form the eligible pool on most files. Real estate equity and closely held business value generally don’t make the cut.
Step 2 — apply the discount. Retirement accounts take the biggest haircut in the industry, and the reasoning traces straight back to tax law. Withdraw retirement money before age 59½ and the IRS treats it as taxable income plus hits it with a 10% early withdrawal penalty. That’s why 59½ is the pivot point nearly every program uses for a bigger or smaller discount on retirement funds. Across the wholesale network, retirement accounts typically count at 70% of value, rising to 80% once the account owner has hit 59½. Stocks, bonds, and mutual funds usually count in full at face value on files placed through this network; cash and cash equivalents count at 100%.
Step 3 — subtract what’s already committed. Down payment, closing costs, and required post-closing reserves come off the top before any divisor gets applied. Whatever’s left is the number that actually gets divided.
Step 4 — apply the divisor. This is where programs diverge the most. On files placed through Lendmire’s wholesale network, the asset allowance path typically divides remaining liquid assets by 36 months when used to supplement other income and the borrower’s DTI runs at or below 60%, by 60 months when supplementing income above that DTI threshold, or by 84 months when asset income stands alone or the loan amount exceeds $3,500,000. Shorter divisors produce more monthly qualifying income from the same asset pool; longer divisors are more conservative.
Step 5 — verify everything. Underwriters want recent statements for every account being counted, and they want to see the money has been sitting there, not deposited the week before applying. Assets that just appeared tend to draw a letter of explanation before they count toward anything.
The No-Ratio Path: Assets-Only Qualification
Some borrowers skip income calculation altogether. Select wholesale programs offer an assets-only path. On this path, a borrower qualifies with no DTI ratio at all. But the bar is higher. U.S.-based liquid assets need to equal the full loan amount, plus closing costs, plus sixty months of any net loss the borrower carries on other residential property. This path works best for borrowers who have enough assets that dividing by months is almost beside the point. It’s typically capped at 80% loan-to-value and reserved for primary and second homes.
What Never Counts — The Consistent Exclusions
Every program in the wholesale network excludes the same categories. These include business funds, gift funds, trusts other than a revocable living trust, unvested stock, and cryptocurrency. None of these count toward asset depletion or the assets-only path. Real estate equity generally doesn’t count either. If a borrower’s wealth is tied up in a closely held business or an irrevocable trust, that value isn’t part of the calculation — no matter how real it is on paper.
Underwriters treat unseasoned deposits with the same skepticism they give any large deposit in a file. If money shows up right before application, with no clear paper trail back to its source, it typically gets excluded. It has to season in the account first.
Where the General Rule Breaks — Edge Cases
The Fannie Mae comparison, and why it doesn’t govern non-QM files. Fannie Mae’s own selling guide requires that income tied to a depleting asset account be documented as likely to continue for at least three years from the note date, under its employment-related assets rule. That agency framework caps loan-to-value differently and uses its own eligibility rules — it has nothing to do with how a non-QM asset depletion file gets priced or underwritten. Borrowers researching this topic online often run into agency terms and assume they apply universally. They don’t. Non-QM programs, including the ones Lendmire places through its wholesale network, build their own asset tables and divisors independent of Fannie or Freddie guidelines.
Retirement accounts inside reserve requirements. Even when asset depletion isn’t driving the core income number, retirement funds often still matter for reserves — and the same age-based discount tends to apply there too, particularly on larger loan amounts where documentation gets more thorough.
Business accounts. Self-employed borrowers sometimes hold personal wealth inside a business-titled account. That gets reviewed case by case, with extra documentation required on ownership and access before any of it counts.
Combining assets with other income. A borrower with dividend income and a large brokerage account can’t count the same dollars twice. Lenders generally pick the stronger path — either treat the dividends as income, or run the account through asset depletion — rather than stacking both.
Where This Program Fits by Loan Size
Files placed through Lendmire’s wholesale network run from $300,000 to $30,000,000 across two separate structures, and the asset paths described above apply specifically to the portfolio non-QM program, capped at 80% loan-to-value on primary and second homes. A separate bank portfolio program carries twelve-month bank-statement files up to $30,000,000 on its own leverage ladder — 65% to $5,000,000, 60% to $10,000,000, and 55% up to $30,000,000, with interest-only available at 60% or the band’s ceiling, whichever is lower.
Leverage on a primary residence steps down as loan size climbs: up to 90% below $1,000,000, 85% below $2,000,000, 80% below $3,000,000, and 75% at the top credit tier up to $4,000,000. Above $4,000,000, every file gets reviewed case by case before submission — never assume a flat percentage at that size. Second homes and investment properties typically run about five points lower than primary-residence figures at every size band, subject to underwriting.
Credit requirements typically start at a 660 floor on the portfolio program, rising to 700 above the super-jumbo threshold. Reserve requirements typically run 3 months of payments up to $500,000 in loan amount, 6 months up to $1,500,000, and 9 months above that — plus two additional months per other financed property, up to a 12-month maximum. First-time real estate investors typically need 12 months of reserves regardless of loan size. None of these figures are guarantees; every file goes through full underwriting, subject to lender guidelines.
DSCR loans are worth a mention here because investors researching asset depletion often land on DSCR pages by mistake. On a rental property purchased through a DSCR loan, the property’s own rent covers the qualification test — asset depletion generally isn’t doing the heavy lifting on income at all. Where a borrower’s personal assets matter most on a DSCR file is reserves, not the core qualifying ratio. Investors weighing the two paths side by side can walk through the mechanics in Lendmire’s complete DSCR loans guide.
Federal Ability-to-Repay rules set a baseline. Any lender offering a covered mortgage must check a borrower’s income or assets using reliable third-party records before closing. This comes from CFPB Regulation 1026.43. Every asset depletion program in the market builds its documentation rules on top of this floor. That’s why lenders always check statement history and account ownership, no matter which lender’s specific table applies.
Tax treatment can depend on how funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
What the Decision Actually Looks Like
A borrower with heavy retirement savings and light reportable income is the classic fit for this path. The account doesn’t need to be liquidated, and it can often clear qualification even after the discount. A borrower whose wealth sits mostly in a closely held business or an irrevocable trust is a classic mismatch. That value typically doesn’t count. A different documentation path, like bank statements, may fit better. For more detail on which account types qualify, and at what percentage, see Lendmire’s own asset depletion eligibility guide. It walks through the asset-by-asset details.
Frequently Asked Questions
Do I have to spend down my accounts to qualify? No. Asset depletion produces a notional monthly income figure for underwriting purposes; the underlying account stays intact and doesn’t get liquidated as part of qualification.
Why do retirement accounts count for less than cash? Because tapping a retirement account early can trigger taxes and a penalty. Lenders discount retirement balances — typically to 70%, rising to 80% once the owner hits 59½ — to reflect that friction, tracking the same age threshold the IRS uses for penalty-free withdrawals.
Can I combine asset depletion with rental income? Sometimes, but not by stacking the full value of both. Lenders generally choose whichever path produces the stronger, cleaner coverage figure rather than adding both together dollar for dollar.
Does a gift from a family member count toward my qualifying assets? Generally no. Gift funds, along with business funds, most trusts, unvested stock, and cryptocurrency, are excluded from asset depletion and assets-only calculations across the wholesale network.
Is asset depletion available for a rental property in Delaware? It depends on the lender, the property type, and current program availability in that state. Because Lendmire’s consumer lending currently operates in 16 licensed states and Delaware isn’t among them, a Delaware borrower should confirm what’s available directly before assuming any program applies.
If you’re weighing whether asset depletion, bank statements, or a rental property’s own cash flow fits your file best, Lendmire can help you compare the qualification paths based on your assets, credit profile, and goals for the property.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 40 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS – What if I withdraw money from my IRA
2. Fannie Mae Selling Guide B3-3.1-01
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.
