Asset Depletion Mortgages In Florida — The Quick Read: An asset depletion mortgage lets a borrower qualify using liquid assets — brokerage accounts, retirement funds, cash — instead of pay stubs or traditional personal-income documentation. A lender converts those assets into a monthly qualifying income figure using a set divisor period, then folds that figure into the debt-to-income calculation like any other income source. It’s built for high-net-worth borrowers whose balance sheets don’t match their tax-return income, and Florida’s mix of retirees, business owners, and cash-heavy buyers makes it a frequently used tool here.
What Counts as an Asset Depletion Mortgage?
An asset depletion mortgage — sometimes called asset dissipation or asset amortization underwriting — treats liquid wealth as a substitute income stream. Instead of asking “what did you earn last year,” the lender asks “what do you hold now, and how long could it support a payment.”
This isn’t a workaround or a gray-area product. It’s a recognized underwriting method used across the mortgage industry. It works for applicants who have real wealth but thin reported income. This includes retirees living off savings, founders who reinvest most of their earnings, and professionals whose traditional personal-income documentation is loaded with deductions.
Across the wholesale network Lendmire places files through, asset-based qualification takes two distinct forms. One is a supplemental asset allowance that boosts a file that’s close but not quite there on debt-to-income. The other is a standalone assets-only path for borrowers with no reportable income at all. Both exist alongside standard bank-statement programs, which qualify borrowers based on business deposits instead.
How the Divisor Actually Works
The mechanic is simple. Lenders divide eligible liquid assets by a set number of months. This gives a monthly qualifying figure, which gets added to any other income the borrower has. The Office of the Comptroller of the Currency supervises national banks. It described the tool plainly in its own guidance: it “uses an applicant’s assets to calculate a hypothetical cash annuity stream,” and that stream “is added to the applicant’s other income when evaluating ability to make mortgage payments” for high-net-worth applicants with significant liquid assets but insufficient cash flow.
Through select lenders in Lendmire’s wholesale network, the asset allowance path divides liquid assets by 36 months when used as a supplement on a file with debt-to-income at or below 60%, by 60 months when supplementing a file above that threshold, or by 84 months when it stands alone or the loan size runs above $3,500,000. Longer divisors produce a smaller monthly figure; shorter divisors produce a larger one. That’s the entire lever — and it’s why divisor choice matters more than the raw asset balance itself.
Retirement accounts don’t count at full value. On most files in the network, retirement funds count at 70% of balance, rising to 80% once the borrower is 59½ or older — a haircut that reflects early-withdrawal exposure. Business funds, gift funds, trusts other than a revocable living trust, unvested stock, and cryptocurrency never count toward either asset path.
Key Terms Defined
Asset depletion (asset dissipation): an underwriting method that converts a borrower’s liquid assets into a hypothetical monthly income figure instead of relying on employment income.
Divisor period: the number of months used to divide eligible assets into a qualifying monthly figure — shorter periods produce a larger qualifying figure.
Assets-only qualification: a path with no debt-to-income calculation at all, requiring liquid assets equal to the loan amount plus closing costs plus five years of any net loss on other residential property.
Reserves: liquid funds a borrower must hold, separate from the assets being counted toward the loan, to cover several months of payments after closing.
Business-purpose loan: a loan made to finance an investment property rather than a personal residence, underwritten around the property’s income rather than the borrower’s personal finances.
What Sizes and Leverage Actually Look Like
Through select wholesale programs, asset depletion and related bank-statement structures run from $300,000 to $30,000,000, split across two program ladders. A portfolio non-QM program carries files to $6,000,000. A separate bank-portfolio program, built for twelve-month-statement files, runs on its own ladder above that: roughly 65% loan-to-value to $5,000,000, 60% to $10,000,000, and 55% up to $30,000,000, with interest-only capped at 60% or the band’s ceiling, whichever is lower.
Leverage on a primary residence steps down as the loan grows, subject to full underwriting: up to 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% at the strongest credit tier to $4,000,000. Above that, every file goes through case-by-case review before it’s even submitted — the network doesn’t publish a flat number above $4,000,000, and neither should anyone reading a program page that claims one. Second homes and investment properties generally run about five points lower at every size band, and the asset-allowance path itself tops out at 80% and applies to primary and second homes only — it doesn’t extend to investment property.
Credit requirements move with size too. The portfolio program’s floor sits at 660; the bank program requires 680; anything crossing the super-jumbo threshold — above $3,500,000 on a primary residence, above $3,000,000 on a second home or investment property — needs a 700 floor along with a clean 24-month housing history and 48 months of seasoning on any credit event.
Where the General Rule Breaks
The rule that assets convert cleanly into qualifying income has real edges, and missing them is the most common structuring mistake.
Agency asset depletion is a different rulebook entirely. Fannie Mae’s conforming guideline — now filed under B3-3.4-06 after being renumbered from its longtime home at B3-3.1-09 — and Freddie Mac’s parallel Section 5307.1 calculate net eligible assets differently from each other, and differently again from the non-agency programs described above. That’s agency/conventional territory with its own subtraction rules, term minimums, and documentation standards. It’s worth knowing it exists so a borrower doesn’t assume “asset depletion” means the same math everywhere.
It mostly doesn’t apply to a straight rental purchase. A non-owner-occupied investment property financed on a business-purpose basis is typically evaluated on the property’s own cash flow, not the buyer’s personal balance sheet. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines — no personal income documentation is required because qualification runs on the property’s income instead. On an investment-property file, a large asset base still matters, but mostly as reserve strength and credibility, not as a line item that gets divided into monthly income the way it would on a personal residence.
Younger borrowers lose ground on retirement assets. The 70%/80% split tied to age 59½ means a 45-year-old with a large 401(k) is reviewed on a meaningfully smaller figure than a 62-year-old with the identical balance.
Future money doesn’t count. A pending business sale, an expected inheritance, a liquidity event six months out — none of that gets credited. Underwriting works off assets that are already documented and seasoned, not what’s coming.
DSCR loans are designed for non-owner-occupied investment properties. They are business-purpose investor loans, so lenders review them differently from a standard owner-occupied mortgage. This single distinction explains why people often confuse asset depletion with DSCR on a rental purchase — and that confusion happens more often than clarity.
Asset Depletion vs. DSCR: Two Different Tools
| Factor | Asset Depletion Mortgage | DSCR Loan |
|---|---|---|
| Reviewed on | Borrower’s liquid assets | Property’s rental income |
| Occupancy | Primary/second home | Investment property |
| Income docs | None; assets replace income | None; property income is the basis |
| Max LTV (best case) | 80% | Up to roughly 85% on smaller balances |
| Title | Personal name typically | Personal or LLC, subject to program eligibility |
Both paths skip W-2s and traditional personal-income documentation. That’s exactly why people confuse the two. But they answer different questions: can this person carry the payment, or does this property carry itself? Take an investor who’s buying a rental and has substantial liquid wealth but weak personal cash flow. This investor often needs to think about both levers separately — how the property qualifies, and how the down payment and reserves get documented — rather than assuming one solves the other.
Why This Comes Up Constantly in Florida
Florida’s condo market has pushed more buyers toward non-agency financing over the past few years. The reason is the state’s post-Surfside reserve law. The Florida Legislature passed Senate Bill 4-D in May 2022. It requires condo and co-op buildings that are three stories or higher to complete milestone structural inspections. These buildings must also complete a Structural Integrity Reserve Study at least every ten years, according to the Florida Department of Business and Professional Regulation. If a building can’t show it meets these requirements, it risks getting flagged as non-warrantable. This routes buyers straight into non-agency lending — the same lane where asset-based and DSCR programs already live.
Florida also draws an unusually large share of buyers who can’t or won’t produce U.S. tax-return income at all. The state accounted for roughly 20% of foreign residential purchases nationally, the highest share of any state, and about 48% of those foreign buyers paid entirely in cash, according to Cross Border International Realty. That’s a large pool of buyers for whom asset-based or property-income qualification isn’t a niche product — it’s the only realistic path.
Lendmire’s network offers consumer mortgage lending in 16 states. This includes Florida, Alabama, California, Colorado, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Business-purpose DSCR investor loans work differently. They run through a separate wholesale footprint that spans 39 states plus Washington, D.C. This is a different platform with different guidelines.
Documentation and Reserves
Underwriting on the assets-only path requires no debt-to-income calculation at all — instead, U.S. liquid assets must equal the full loan amount plus closing costs plus five years of any net loss carried on other residential property. That’s a much higher liquidity bar than the supplemental allowance path, and it’s reserved for borrowers who’d rather not touch their personal tax situation for the file at all.
Reserve requirements scale with loan size on the network’s programs: three months of payments to $500,000, six months to $1,500,000, nine months above that, plus two additional months for every other financed property, up to a twelve-month maximum. First-time investors need a full twelve months regardless of loan size. Cash-out proceeds can’t be used to satisfy any of these reserve requirements — the reserves have to come from funds already seasoned and separate from the transaction. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
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.
Are you trying to decide if an asset-based structure or a property-income structure fits your purchase? Check the complete DSCR loans guide. It explains how the property-income side actually gets underwritten. You can also see how it compares in states like Connecticut or in the Florida Keys market, which Lendmire covers separately in its Islamorada coverage.
Frequently Asked Questions
Do I have to liquidate my portfolio to use asset depletion? No. The assets are verified and counted on paper for qualification purposes; the underlying investments stay untouched and keep compounding. Liquidation only happens if the funds are actually needed for the down payment or closing costs.
Does every dollar in my account count as qualifying income? No. A divisor formula converts eligible assets into a monthly qualifying figure, and retirement accounts get discounted further depending on the borrower’s age. Business funds, gifts, and unvested stock don’t count at all.
Can I use asset depletion to buy a rental property? Generally, no — the asset-allowance path applies to primary and second homes. A rental purchase typically qualifies through a DSCR structure instead, where the property’s own rental income covers the payment, subject to lender guidelines.
What’s the difference between this and a bank-statement loan? A bank-statement loan is reviewed on deposits into a business or personal account over 12 or 24 months; asset depletion is reviewed on assets already held, divided by a set number of months. Some files blend both, or blend asset income with modest W-2 or self-employment income, on a case-by-case basis.
Is there a minimum credit score for these programs? Through the network’s portfolio program the floor typically runs 660, rising to 680 on the bank-statement ladder and 700 above the super-jumbo size threshold — all subject to full underwriting and program eligibility.
If you’re buying or refinancing a property and want to see how an asset-based structure or a DSCR structure actually pencils for your file, Lendmire can help compare the options based on the property, your asset picture, credit profile, and leverage needs. Reach the team at 828-256-2183 or request a quote directly.
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 is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 40 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
3. Florida DBPR Condominium FAQs
4. Cross Border International Realty
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.
