Who this applies to
Retirees and self funded buyers in Sun City Center who have strong savings and investments but do not show enough traditional monthly income for a standard loan.
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Can Asset Depletion Help Me Buy a Home in Florida?
By Dewey Kopenga and Travis Penny. updated July 2026
Quick Answer
4 min read
Yes. Asset depletion can help asset rich buyers qualify without traditional income.
An asset depletion loan converts your eligible liquid assets into a qualifying income figure using a lender formula. It is designed for buyers who have substantial savings and investments but modest monthly income, which is common in retirement. Program rules and eligible account types vary by lender.
- ◆Qualification is based on assets rather than monthly paychecks.
- ◆It suits retirees who are asset rich but low on taxable income.
- ◆Eligible account types and formulas vary by lender and program.
TL;DR
Asset depletion, sometimes called asset based lending, lets buyers qualify using their savings and investments rather than monthly income. It is useful for retirees who are asset rich but show low taxable income.
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Last verified July 2026. Reviewed for accuracy by Dewey Kopenga and Travis Penny.
How it generally works
The lender totals your eligible liquid assets, applies its formula and any discounts, and spreads the result over a set period to create a monthly qualifying income. That figure is then used in the usual debt to income calculation. The exact formula, eligible accounts, and minimum balances depend on the program.
Common mistakes to avoid
- ◆Assuming every account counts. Some accounts are excluded or discounted.
- ◆Making large unexplained transfers right before applying.
- ◆Choosing a lender that does not offer asset based programs.
Important disclaimer
This page is general education, not legal, tax, or financial advice, and it does not guarantee any loan approval. Loan program rules change and every lender applies its own overlays. Talk to a licensed loan officer about your specific situation before you count on any option. Travis Penny, NMLS 1649161, can review your numbers directly.
Frequently Asked
Questions about mortgage answers.
No. Asset depletion is a way to qualify for a standard forward mortgage using assets. A reverse mortgage is a different product with different rules.
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