Asset Depletion Mortgages In Wyoming — The Quick Read: Asset depletion turns verified liquid assets — cash, brokerage accounts, retirement funds — into a monthly qualifying-income figure instead of relying on traditional personal-income documentation or a paycheck. Not every account counts, and not every dollar counts at full value. Retirement funds get discounted based on the borrower’s age, and several asset types — business accounts, gifts, most trusts, unvested stock, cryptocurrency — are excluded outright under the guidelines used across Lendmire’s wholesale bank-statement network. Wyoming borrowers should note a scope wrinkle covered below before assuming any specific consumer program applies to them.
Key Takeaways
- Asset depletion converts liquid assets into imputed income; it does not require selling anything.
- Retirement accounts typically count at a discount — 70% under age 59½, rising to 80% once the borrower clears that age threshold, on the programs Lendmire places files with.
- Real estate equity, business funds, gift funds, unvested stock, cryptocurrency, and most trusts other than a revocable living trust are excluded.
- Two distinct math paths exist: an income-style divisor and a no-DTI, assets-cover-everything path (Assets-Only) — they are not the same calculation.
- Wyoming is outside Lendmire’s 16-state consumer lending footprint, so an investor there should confirm which program actually applies before running numbers.
What an Asset Depletion Mortgage Actually Does
An asset depletion mortgage lets a borrower qualify using verified liquid assets instead of employment income. Here’s how it works: the lender documents the balances, applies discounts based on asset type, and converts what’s left into either a monthly income figure or a straight assets-cover-the-loan test. This program is built for people who are asset-rich but income-light on paper. That includes retirees drawing modest distributions, business owners a year removed from a sale, or investors whose personal-income documentation understates what they actually earn after depreciation and write-offs.
This is a non-QM product. There’s no single federal formula dictating the discount schedule or the divisor. Everything past that — which asset classes count, at what percentage, divided by how many months — is set by each program’s own guidelines, which is exactly why two files built off identical bank statements can produce very different qualifying numbers.
Key Terms Defined
Asset depletion (or asset dissipation): underwriting math that converts a pool of liquid assets into a monthly income figure used in place of, or alongside, W-2 or self-employment income.
Haircut: the discount applied to an asset class before it counts toward qualifying income — retirement funds get one, cash generally doesn’t.
Divisor: the number of months a lender divides the eligible asset total by to produce a monthly income figure. A shorter divisor produces a bigger monthly number from the same pile of money.
Assets-Only qualification: a structure that skips debt-to-income math entirely and instead requires the borrower’s liquid assets to cover the loan amount, closing costs, and a cushion for any net loss on other owned property.
Seasoning: the length of time a balance has sat in an account before a lender will count it, meant to keep a borrower from parking borrowed or gifted money right before applying.
How Underwriting Actually Treats an Asset Pool, Step by Step
The process runs the same basic order every time, even though the discount percentages and divisor length shift by program.
1. Inventory every liquid account. Checking, savings, CDs, money-market funds, brokerage accounts, and vested retirement accounts all get listed with current statement balances.
2. Apply the discount by asset class. Cash-type accounts generally hold their full value. Retirement accounts get discounted — on the programs Lendmire places files with, that’s 70% of the balance if the borrower is under 59½, and 80% once they clear that age. Several categories don’t get a discount because they don’t count at all: business funds, gift funds, unvested stock, cryptocurrency, and trust assets other than a revocable living trust.
3. Subtract committed funds. Money already earmarked for the down payment, closing costs, or required reserves comes out of the pool before the math continues.
4. Run the remaining pool through the applicable path. Under an Asset Allowance structure, the pool is divided by 36 months when it’s a supplemental income source and the borrower’s overall debt-to-income sits at or below 60%, by 60 months when it’s supplemental and DTI runs above 60%, or by 84 months when it’s the sole qualifying source or the loan exceeds $3,500,000. Under an Assets-Only structure, there’s no divisor at all — the borrower simply needs U.S. liquid assets equal to the loan amount, plus closing costs, plus sixty months of coverage for any net loss on other residential real estate they own.
5. Underwrite the file the normal way. For Asset Allowance files, the resulting income figure flows into standard debt-to-income underwriting alongside credit, reserves, and property review. Assets-Only files skip DTI and are sized directly to the asset pool.
That divisor choice matters more than almost anything else in the file. A shorter divisor produces a bigger monthly qualifying figure off the identical account balances — which is the single biggest reason two lenders can look at the same statements and hand back very different qualifying-income numbers.
Which Assets Count — The Eligibility Picture
Cash and liquid balances (checking, savings, CDs, money-market funds) generally count toward the qualifying pool at their statement value. Retirement accounts count, but at a discount tied to the borrower’s age relative to 59½. Several asset categories are excluded no matter how large the balance. The Consumer Financial Protection Bureau’s Ability-to-Repay rule requires a lender to consider income or assets and verify them through reasonably reliable records — that’s the floor, not the mechanics.
| Asset Category | Counts? | How It’s Treated |
|---|---|---|
| Checking, savings, CDs, money market | Yes | Generally counted at statement value |
| Retirement accounts (under 59½) | Yes, discounted | Counted at 70% of balance |
| Retirement accounts (59½ and older) | Yes, discounted | Counted at 80% of balance |
| Business operating funds | No | Excluded |
| Gift funds | No | Excluded |
| Trusts (other than revocable living trust) | No | Excluded |
| Unvested employer stock | No | Excluded |
| Cryptocurrency | No | Excluded |
Real estate equity doesn’t appear on this list because these paths are built on liquid assets — equity locked in a property isn’t liquid, so it never enters the pool no matter how much of it exists. An investor sitting on a fully paid-off rental with substantial equity gets zero qualifying credit from that equity under an asset-based path. If that equity needs to work for financing, a cash-out refinance or a separate acquisition loan is the tool, not asset depletion math.
The retirement-account age rule follows the same logic the IRS uses for early withdrawals. A dollar locked behind a penalty before age 59½ genuinely isn’t as easy to access as a dollar sitting in checking. The underwriting discount reflects that reality — it isn’t an arbitrary haircut.
Two Structures That Look Similar but Aren’t
Asset Allowance and Assets-Only both use liquid assets to qualify a borrower, but the math underneath is fundamentally different, and mixing them up is one of the more common mistakes investors make when comparing programs.
Asset Allowance produces an imputed monthly income figure, which then runs through standard debt-to-income underwriting. You can use it as a supplemental income source, paired with your other income. Or, at loan sizes above $3,500,000, you can use it as your sole qualifying source with the longer 84-month divisor. This path is capped at 80% loan-to-value and applies only to primary residences and second homes — it isn’t available for investment-property purchases.
Assets-Only removes debt-to-income from the equation entirely. Instead of converting assets into an income proxy, the lender confirms the borrower’s U.S. liquid assets equal the full loan amount, plus closing costs, plus sixty months of coverage for any net loss the borrower carries on other residential property. There’s no divisor and no DTI ratio to calculate — the assets either cover the exposure or they don’t.
Because Asset Allowance stops at primary and second homes, an investor buying a straight rental property with strong liquid assets but thin tax-return income usually isn’t routed through this math at all. That’s where a DSCR loan — a business-purpose loan that qualifies primarily on the property’s own rental income covering the payment, subject to lender guidelines — tends to sit alongside rather than inside the asset-based file. Investors comparing the two paths directly can walk through the mechanical differences in DSCR loan vs. asset depletion loan.
Where the General Rule Breaks
A handful of edge cases trip up borrowers who assume asset depletion math is uniform across the industry.
Retirement age discounts aren’t standardized industry-wide. The 70%/80% split described above reflects the guidelines Lendmire places files under; other non-QM investors run different percentages on the exact same age thresholds. This is a program-specific number, not an industry constant, so a figure quoted by one lender shouldn’t be assumed to apply at another.
Trusts are a common trip point. A revocable living trust where the borrower controls the assets generally counts. An irrevocable trust, or most other trust structures, doesn’t — the borrower doesn’t have unrestricted access, and unrestricted access is the whole point of counting an asset at all.
Agency-style asset depletion is a different animal. Fannie Mae’s version, described in Selling Guide topic B3-3.4-06, only counts employment-related assets and divides by the full loan term — 360 months on a 30-year note, which produces a much smaller monthly figure than a non-QM divisor. Neither of those agency rules governs the non-QM paths described here; they’re worth knowing only so an investor doesn’t confuse a conforming-loan number with a non-QM one when comparing offers.
Recently deposited money doesn’t count right away. Statements need to show history, not a balance that appeared the week before application. A business sale, an inheritance, or a large transfer generally needs to season before it’s treated as a stable part of the pool — moving money around right before applying is one of the more reliable ways to stall a file.
Investment property runs a tighter path. Since Asset Allowance stops at primary and second homes, an investor buying a rental with liquid-asset strength but no qualifying tax-return income typically needs the property’s own rent to carry the file through a DSCR structure instead, with reserves and leverage sized to the deal the normal way.
The Wyoming Scope Note
Wyoming doesn’t sit inside Lendmire’s current 16-state consumer mortgage lending footprint — Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. That footprint covers the consumer-purpose bank-statement and asset-based programs described above, including Asset Allowance and Assets-Only on primary and second homes.
An investor with a Wyoming property but no personal-residence angle isn’t necessarily out of options. Select lenders offer business-purpose investment-property financing — DSCR loans in particular — through a much broader wholesale network spanning 39 states plus Washington, D.C. Whether a specific asset-based consumer path applies to a Wyoming borrower depends on where they actually live, where the property sits, and the loan’s purpose. That’s worth a direct conversation before assuming either program fits.
Reserves, Leverage, and What the File Actually Needs
On the programs Lendmire’s network places files with, reserve requirements scale with loan size: typically 3 months of reserves to $500,000, 6 months to $1,500,000, and 9 months above that, plus 2 months for each additional financed property up to a 12-month ceiling. First-time investors are typically held to 12 months regardless of loan size. Credit floors generally sit at 660 on the portfolio program, with tighter overlays — a 700 floor, 48-month seasoning on any credit event, no non-occupant co-borrowers — kicking in on loans above $3,500,000 for a primary residence or $3,000,000 for a second home or investment property, where every file is reviewed case by case before submission.
Loan sizing on these programs runs from $300,000 to $30,000,000 through two separate wholesale ladders — a portfolio non-QM program carrying files to $6,000,000, and a bank portfolio program that carries 12-month-statement files to $30,000,000 on its own leverage schedule: 65% to $5,000,000, 60% to $10,000,000, and 55% at the top of the range, with interest-only capped at 60% or the band’s ceiling, whichever is lower. Anything above $4,000,000 gets individual review before it’s submitted, and that holds true regardless of which asset-based or income-based path a borrower uses to qualify.
Here’s a practical tip for asset depletion or asset allowance files: gather every page of every statement upfront, not just the summary page. This makes the process go smoother. Missing pages are one of the most common reasons an asset-based file gets sent back with a stipulation request before it ever reaches a final decision.
The Practical Decision
Picture an investor who’s well past 59½, holds a liquid portfolio, and draws modest Social Security. They want to buy a second home, but their personal-income documentation alone wouldn’t pass a conventional debt-to-income test. Here’s how the supplemental Asset Allowance path can help. First, the lender counts the retirement balance at 80% of its value. Then it adds the taxable brokerage and cash accounts at full value. Next, it divides that eligible pool by 60 months to get a monthly qualifying figure (this assumes the overall DTI lands above 60% once that income is added). Paired with Social Security, this monthly figure can move a marginal file into an approvable range. This is still subject to full underwriting, credit review, and property approval.
Now run a variation: the same investor wants a straight rental property instead of a second home. Asset Allowance doesn’t apply to investment property at all. The practical path shifts to a DSCR structure sized to the subject property’s rent-to-payment coverage, with the liquid-asset strength showing up in reserves rather than in the income calculation itself. Lendmire’s complete DSCR loans guide walks through how that coverage ratio gets built and what leverage typically follows from it.
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.
Investors weighing an asset-based path against a straight rental-income structure, or trying to figure out which liquid assets actually move the needle on their specific portfolio, can call Lendmire at 828-256-2183 or request a quote to compare how the numbers run under each program.
Frequently Asked Questions
Does every dollar in my account count toward qualifying income?
No. Cash-type balances generally count at full value, but retirement accounts are discounted based on age, and several categories — business funds, gifts, most trusts, unvested stock, cryptocurrency — don’t count at all regardless of size.
Can I combine asset depletion with Social Security or pension income?
Under a supplemental Asset Allowance structure, yes — the asset-based income figure is added to other qualifying income sources rather than standing alone. The standalone 84-month divisor path is reserved for cases where it’s the sole source or the loan exceeds $3,500,000.
Does my home equity count as an asset?
No. These paths run on liquid assets. Equity in real estate, including a paid-off home, isn’t liquid and doesn’t enter the pool no matter how large it is.
Can I use asset depletion to buy a rental property?
Not through the Asset Allowance or Assets-Only paths described here — those apply to primary residences and second homes only. A straight rental purchase typically routes through a DSCR structure that is reviewed on the property’s own rental income instead.
Do I have to liquidate my investments to use this program?
No. The assets stay invested. The lender is converting the balance into a qualifying figure, not requiring the borrower to sell anything.
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 mortgage brokerage built around DSCR investor lending, with programs available in 40 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Fannie Mae Selling Guide B3-3.4-06 — Employment-Related Assets as Qualifying Income
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.
