Learn how asset depletion income is calculated—eligible assets, haircuts, divide by loan term, monthly DTI income.
How Does Asset Depletion Income Work? | 2MG
Learn how asset depletion income is calculated—eligible assets, haircuts, divide by loan term, monthly DTI income.
How Does Asset Depletion Income Work?
The Calculation in Four Steps
Example Scenario
Formula at a Glance
What Changes Your Income Number
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Related Blog Posts
Frequently Asked Questions
Want Your Depletion Income Calculated?
From eligible accounts to monthly DTI income — the step-by-step math behind asset depletion Non-QM qualifying.
Every asset depletion program follows the same core logic — only the haircuts, reserve rules, and eligible account types change by investor.
An Indiana retiree holds $800,000 in eligible accounts: $200,000 cash, $400,000 brokerage, and $200,000 IRA. After program haircuts (100% cash, 80% brokerage, 70% IRA), usable assets total $780,000.
Subtract $160,000 down payment, $15,000 closing costs, and $45,000 reserves (6 months PITIA). Depletion base: $560,000. On a 30-year term (360 months), monthly depletion income ≈ $1,556 — plus any Social Security or pension already documented.
This is illustrative only. Ryan & Steve run your actual balances against current investor haircuts and reserve rules before you apply.
Guidelines vary by investor, credit, and loan amount. This example is educational — not a guarantee of approval or income amount.
Monthly income =
(Eligible assets × haircuts − down payment − reserves − closing costs) ÷ loan term in months
Small shifts in term, equity, or account mix can move qualifying income significantly.
Related asset depletion guides and Non-QM resources from Ryan & Steve.
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Ryan & Steve will run your portfolio against current investor haircuts and reserve rules before you apply.