No—asset depletion is a calculation method, not a forced liquidation. Keep assets invested while using calculated income for DTI.
Do I Have to Withdraw Money for Asset Depletion? | 2MG
No—asset depletion is a calculation method, not a forced liquidation. Keep assets invested while using calculated income for DTI.
Do I Have to Withdraw Money for Asset Depletion?
Depletion Is Math — Not Liquidation
What Moves vs. What Stays
When You Might Choose to Liquidate
Avoid Double-Counting Cash
Keep Exploring
Related Blog Posts
Frequently Asked Questions
Keep Your Portfolio — Still Qualify
No — asset depletion converts your balances into qualifying income on paper. You do not have to cash out your portfolio just to get approved.
The word “depletion” sounds like you are spending the account down. In Non-QM underwriting it means something narrower: lenders assume a schedule of how long your usable liquid assets could support a monthly payment, then treat that figure as income for DTI.
Your brokerage and retirement accounts typically stay invested. The lender documents balances with statements, applies haircuts, subtracts down payment and reserves, and divides by the loan term. Approval does not require wiring the entire portfolio to escrow.
Ryan & Steve walk Indiana buyers through exactly which dollars must move for closing — and which dollars only need to appear on statements for the income calc.
Guidelines vary by investor, credit, and loan amount. This overview is educational — your file is reviewed against current product rules.
Optional sales are strategy decisions — not program mandates.
The dollars you spend on down payment and closing cannot also create depletion income. Underwriters subtract those amounts from the eligible pool before dividing by the loan term.
We separate “cash to close,” “reserves,” and “income assets” up front so your Indiana file stays consistent from pre-approval through underwriting.
Bottom line
Related asset depletion guides and Non-QM resources from Ryan & Steve.