Asset Depletion Mortgages In West Virginia: Which Assets Count — The Quick Read: An asset depletion mortgage lets a borrower qualify on liquid wealth instead of a paycheck. Lenders take eligible cash, brokerage, and retirement balances, apply a discount to the riskier account types, and spread what’s left across a set number of months to create a monthly income figure. Business assets, gift funds, crypto, unvested stock, and most trusts generally don’t count. Investment property is where this method usually runs out of road — which is why most rental buyers end up looking at a DSCR loan instead.
Key Takeaways
- Asset depletion converts a balance sheet into qualifying “income” using a divisor — it does not require selling anything off.
- Cash and brokerage accounts typically count at or near full value; retirement accounts get discounted, especially before age 59½.
- Business accounts, gift funds, borrowed money, cryptocurrency, unvested equity, and most trust structures are commonly excluded.
- Through select lenders in Lendmire’s wholesale network, asset-based qualification paths apply to primary and second homes, capped at 80% loan-to-value, subject to underwriting.
- A rental property that won’t clear the math on assets alone is usually a better fit for a DSCR loan, which is reviewed on the property’s rent instead of the borrower’s net worth.
What an Asset Depletion Mortgage Actually Does
An asset depletion loan turns money in an account into a monthly income figure a lender can underwrite. It’s built for people whose traditional personal-income documents understate what they’re actually worth. This includes retirees, people who recently had a liquidity event, and high-net-worth investors without a steady paycheck.
Nobody has to cash anything in to use it. The lender simply documents that the money exists, is liquid, and belongs to the borrower free and clear. That documentation stands in for a pay stub.
Key Terms Defined
Asset depletion (asset qualification): an underwriting method that turns liquid assets into a monthly income number instead of relying on traditional personal-income documentation.
Divisor: the number of months a lender divides eligible assets by to produce the monthly income figure — a shorter divisor produces more usable income from the same pool of money.
Haircut: the percentage discount a lender applies to a volatile or restricted asset class, such as a retirement account, before it enters the depletion math.
Seasoning: the length of time a deposit or asset needs to sit in an account, verified through statements, before a lender will count it.
DSCR (debt-service coverage ratio): on a rental-property loan, the property’s monthly rent divided by its monthly payment — a different qualification path entirely, explained in Lendmire’s complete DSCR loans guide.
How the Math Actually Runs, Step by Step
The mechanics are the same regardless of who’s underwriting the file. What changes from lender to lender is the divisor and the haircuts — not the sequence.
1. Identify eligible assets. Checking, savings, money market, CDs, brokerage accounts, and vested retirement funds are the usual pool.
2. Apply the haircut. Ordinary cash generally counts near full value. Retirement funds get discounted — through select lenders in Lendmire’s network, retirement balances count at 70% under age 59½ and 80% at 59½ or older.
3. Carve out closing funds and reserves first. Down payment, closing costs, and required reserves come out of the pool before any depletion math runs — those dollars can’t double as both closing funds and income.
4. Divide by the program’s timeline. Through select lenders in Lendmire’s network, this runs 36 months when the asset income is supplemental and debt-to-income sits at or below 60%, 60 months when it’s supplemental above that threshold, or 84 months when the asset income stands alone or the loan exceeds $3,500,000.
5. Run the resulting figure through standard underwriting — credit, reserves, debt-to-income up to roughly 50% on most files, and overall file strength.
6. Document where the money came from. Large or recent deposits get questioned. A separate, related path — assets-only qualification — skips the debt-to-income calculation entirely, but only when U.S. liquid assets equal the loan amount plus closing costs plus sixty months of any net loss carried on other residential property.
Fannie Mae takes a stricter view of asset-derived income on owner-occupied files. When an asset account is the sole or majority source of qualifying income, the lender must confirm the borrower can keep paying once that account runs dry. For income tied to an expiring source, the lender must also document at least three years of expected continuance, per Fannie Mae’s Selling Guide. Non-QM asset depletion programs exist precisely because most real estate investors don’t fit that agency mold.
Which Assets Count — and Which Don’t
Not every dollar on a net-worth statement is eligible. Lenders want money that’s liquid, verifiable, and genuinely under the borrower’s control.
| Asset Type | Typically Counts? | Notes |
|---|---|---|
| Checking, savings, money market | Yes, near full value | Standard seasoning applies |
| Brokerage / investment accounts | Yes, often discounted | Market volatility is a factor lenders weigh |
| Retirement accounts (401k, IRA) | Yes, discounted by age | 70% under 59½, 80% at 59½+ on most network files |
| Cash value life insurance | Sometimes, near full value | Program-dependent |
| Business bank accounts | Generally no | Pulling funds may weaken the business the lender is relying on |
| Gift funds | Generally no | Money must belong to the borrower, not be given for the transaction |
| Cryptocurrency | No, until liquidated and seasoned | Must convert to cash and season before counting like any other liquid asset |
| Unvested RSUs / stock options | No | Not yet realized wealth |
| Real estate equity | No | Illiquid — this is about liquid assets, not net worth broadly |
| Revocable living trusts (borrower is owner) | Often yes | Other trust structures generally excluded or need extra documentation |
Interest, dividends, and capital gains generated by an account already used for depletion typically can’t be counted a second time as separate income — that would be qualifying on the same dollars twice.
The Structures That Exist — and Where They Diverge
Not every asset-based path looks the same, and the differences matter for how big a file can get.
Through select lenders in Lendmire’s network, an asset allowance path treats depletion income as a supplement to other income sources. It divides eligible assets by 36 or 60 months, depending on debt-to-income, and caps loan-to-value at 80% on primary and second homes. An assets-only path skips debt-to-income math entirely. Instead, it requires U.S. liquid assets equal to the loan amount, plus closing costs, plus sixty months of any net loss on other residential property the borrower holds. Both paths exclude business funds, gift funds, most trusts, unvested stock, and cryptocurrency.
Loan sizing across Lendmire’s broader non-QM network runs from $300,000 to $30,000,000 through two separate wholesale tracks — a portfolio program carrying files to $6,000,000, and a bank-statement program using twelve months of statements that carries its own leverage ladder to $30,000,000 (65% to $5,000,000, 60% to $10,000,000, 55% to $30,000,000, interest-only capped at 60% or the band’s ceiling, whichever is lower). Everything above $4,000,000 gets reviewed case by case before submission — never treat any figure at that size as automatic. Leverage on a primary residence steps down as the loan grows: 90% ceiling to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, dropping further at the top end before shifting to the bank program’s own ladder; second homes and investment property generally run about five points lower at every size, all subject to underwriting.
Documentation on the income side, separate from asset depletion, uses 12 or 24 months of personal or business bank statements. Qualifying income is calculated as eligible deposits divided by the statement months, after applying an expense ratio. Transfers from a borrower’s own business into a personal account count at full value on this path. Credit floors are 660 on the portfolio program, 680 on the bank program, and 700 above the super-jumbo threshold. Reserve requirements run roughly three months up to $500,000, six months up to $1,500,000, and nine months above that. Exact terms depend on the lender’s guidelines, the property type, leverage, and a full review of the borrower’s file.
Where the General Rule Breaks
Asset depletion works cleanly for a primary residence and reasonably well for a second home. Rental property is a different story.
Investment property is the biggest fault line. Agency-style asset depletion is built for owner-occupied housing — it doesn’t recognize DSCR underwriting or rental income at all. Through select lenders in Lendmire’s network, asset-based qualification paths apply to primary and second homes only, capped at 80% loan-to-value. A pure rental purchase generally moves to DSCR instead, where the property’s own rent — not the buyer’s balance sheet — drives approval.
Business assets need to actually leave the business first. Money sitting in an operating account isn’t treated as personal wealth until it’s been withdrawn, seasoned, and shows up cleanly in a personal account.
Retirement age creates a hard line. The jump from a 70% haircut under age 59½ to an 80% haircut at 59½ and older can materially change how much qualifying income the same account produces — worth checking before assuming a number.
A property that doesn’t cash-flow on rent alone isn’t automatically dead. DSCR programs below 1.00 coverage are available through select lenders in Lendmire’s network, though leverage and terms adjust when they’re used — this isn’t a workaround, it’s a different pricing tier on the same loan type.
Asset Depletion vs. DSCR: Which Path Fits a Rental Buyer
The two methods answer completely different underwriting questions. Asset depletion asks what the borrower is worth. DSCR asks what the property earns. Lendmire’s DSCR vs. conventional comparison breaks down that second path in more depth.
A DSCR loan looks mainly at the property’s rental income to cover the payment, subject to lender guidelines. You don’t need to document personal income, because the property’s income qualifies the loan instead. Say an investor has a lot of liquid wealth, but their rental property doesn’t quite pass a standalone coverage test. Some non-QM lenders will let strong personal liquidity make up the shortfall, instead of declining the file outright.
West Virginia is a reasonable place to see why this decision matters. Statewide home values sit well below the national picture, with Ark7 putting average home value near $178,700 and gross rental yields in the 6% to 8% range in stronger markets. A landlord-favorable regulatory climate — Repit rates the state 5 out of 5 on landlord friendliness, citing streamlined evictions and no rent control — reduces some of the operational uncertainty investors weigh when comparing financing paths. That combination of lower entry prices and workable rent math is exactly the setup where a DSCR loan often makes more sense than trying to stretch an asset-based path onto a rental deal it was never designed for.
Tax treatment can depend on how the 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.
Frequently Asked Questions
Do I have to sell my investments to qualify this way?
No. Asset depletion only requires that the money be documented, liquid, and available — not liquidated. The lender is confirming capacity, not requiring a sale.
Does my home equity count as an asset?
Generally no. Asset depletion looks at liquid or near-liquid holdings, not net worth tied up in real estate.
Can I combine asset depletion with rental income from other properties?
That depends on the specific lender, the loan size, and how the file is structured — some programs allow layering, others treat asset income as a standalone qualifier. It’s a file-by-file question.
What happens if my brokerage balance drops after I apply?
Lenders typically work from statements dated close to the note date, so a meaningful drop before closing can change the numbers. Locking in updated statements early in the process reduces surprises.
Is asset depletion available for a rental property purchase?
Through select lenders in Lendmire’s network, asset-based qualification is generally reserved for primary and second homes. Investors buying pure rental property typically look at DSCR loans instead, which qualify on the property’s rent.
Are you weighing whether asset depletion, DSCR, or a blend of both fits your purchase or refinance? Lendmire can help you compare options across select lenders in its wholesale network, which spans 40 markets, including Washington, D.C. The comparison looks at the property’s income, the borrower’s liquidity, leverage, and overall goals.
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 non-QM mortgage broker serving real estate investors in 40 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
Lendmire’s Top Mortgage Workplace recognition is documented by Scotsman Guide 2025 Top Mortgage Workplace and Scotsman Guide 2026 Top Mortgage Workplace.
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References
1. Fannie Mae Selling Guide — B3-3.1-01 General Income Information
2. Ark7 — Best Places to Invest in West Virginia
3. Repit — West Virginia Real Estate Data
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.
