Asset depletion mortgages
For buyers with substantial liquid assets but low taxable income, for example, borrowers living on savings and investments or recently exited business owners. The lender converts your portfolio into a qualifying income figure rather than relying on W-2s or tax returns.
How the math works
Most lenders use 100% of cash and 70 to 80% of investment accounts (haircut for market risk), then divide by 240 months (Fannie) or 60 to 84 months (portfolio). Example: $1.5M in brokerage × 70% / 240 = $4,375/mo qualifying income.
Who qualifies
Generally 62+ for Fannie's version, but portfolio lenders allow any age. Need 12+ months of statements, 700+ FICO typical, primary or second-home only, usually not investment property.
OOB use cases
Often used for oceanfront condo and cottage purchases funded from savings and investments. Also used by buyers keeping a Florida primary residence and adding an OOB second home.
Trade-offs
Rates are usually close to a standard conventional loan. Down payment requirement often higher (20 to 25%) than W-2 borrowers. Account balances are re-verified at funding; large recent transfers raise underwriting questions.
- Typical divisor
- 240 months
- Min FICO
- 700
- Down payment
- 20 to 25% common
- Asset haircut
- 70 to 80% on investments
Compiled from Town of Old Orchard Beach, RSU 23, FEMA, Maine Revenue Service, US Census, and MLS. Deemed reliable but not guaranteed; verify before any transaction.
Financing questions on a Maine to Florida move: Maine to Florida Mortgage Broker
This site does not originate loans and is not an offer or commitment to lend. Figures are estimates for education only. Equal Housing Opportunity.