Key takeaways
- Assets become income on paper only. An asset depletion mortgage converts documented balances into a monthly qualifying figure. You are not required to liquidate, pledge, or spend the accounts.
- Age 62 changes your leverage. Fannie Mae caps LTV, CLTV, and HCLTV at 70%, or 80% when the owner of the qualifying assets is at least 62 at closing (Selling Guide B3-3.4-06, updated March 4, 2026).
- The math is a division problem. Fannie Mae's rule is to divide net documented assets by the amortization term of the loan in months — 360 months on a 30-year loan.
- Primary and second homes only. The Fannie Mae program is limited to a principal residence or second home, and to purchases and limited cash-out refinances — not investment property.
Plain-English answer: An asset depletion mortgage in Las Vegas lets you qualify using documented liquid assets rather than employment income. Fannie Mae calls it employment-related assets as qualifying income: the lender divides your net documented assets by the loan's amortization term in months to produce a monthly qualifying figure.
- Total the balances you can document and actually access without restriction.
- Subtract the cash you will spend on the down payment and closing costs.
- Divide what remains by 360 months to see a 30-year qualifying figure.
- Check whether you clear 70% LTV, or 80% if the asset owner is 62 or older at closing.
Sources: Fannie Mae Selling Guide B3-3.4-06 (updated March 4, 2026); FHFA 2026 conforming loan limits (November 25, 2025). Illustrative — not a quote, offer, or commitment to lend.
Key terms in plain English
An asset depletion mortgage file leans on four phrases that do most of the work. The everyday meaning comes first so you can follow the math without the underwriting vocabulary.
- Asset depletion
- The industry nickname for turning a pile of documented assets into a monthly qualifying income figure.
- Employment-related assets
- Fannie Mae's formal name for the program, found in Selling Guide section B3-3.4-06.
- Net documented assets
- Your eligible balances after subtracting the down payment, closing costs, and any withdrawal penalty that would apply.
- Amortization term
- The length of the loan in months — 360 for a 30-year, 180 for a 15-year — and the divisor in the calculation.
What is an asset depletion mortgage in Las Vegas?
An asset depletion mortgage in Las Vegas is a conventional loan that qualifies you on documented liquid assets rather than on employment income. Fannie Mae's formal name for it is employment-related assets as qualifying income, and the rules live in Selling Guide section B3-3.4-06. The key point that surprises most borrowers: nothing is liquidated, pledged, or frozen. The accounts stay yours and stay invested. They are used only to produce a number that goes on the income line of your application.
That distinction matters in a valley full of people whose wealth is not a W-2. A retired Summerlin couple living on portfolio withdrawals, a business owner who just sold and is sitting on proceeds, an executive relocating with a large brokerage balance and a start date three months out — each has real capacity to pay and a thin traditional income file. Asset depletion is the underwriting path built for exactly that mismatch. If you are still mapping the loan landscape, start with our Las Vegas home loan guide, which lays out how the conventional programs fit together.
Valley West takeBorrowers often hear “asset depletion” and picture a lender draining the account on a schedule. It is the opposite. The word describes a hypothetical — what a monthly draw would look like if the assets were spread evenly across the loan term. Your actual spending, withdrawals, and investment strategy are untouched by the calculation.
How do lenders turn your assets into monthly qualifying income?
Las Vegas lenders turn assets into qualifying income for an asset depletion mortgage with a single division. Fannie Mae states the mechanic in one sentence:
“The lender must divide ‘Net Documented Assets’ by the amortization term of the loan (in months).”
Fannie Mae Selling Guide, B3-3.4-06 — Employment-Related Assets as Qualifying Income (updated March 4, 2026) — https://selling-guide.fanniemae.com/sel/b3-3.4-06/employment-related-assets-qualifying-income
Two inputs, then. First, net documented assets: your eligible balances, reduced by the money you are spending on the down payment and closing costs, and reduced again by any early-withdrawal penalty that would apply to a retirement account you cannot yet access penalty-free. Second, the amortization term in months — 360 on a 30-year loan, 180 on a 15-year. The output goes into your debt-to-income calculation exactly as a salary would.
The term you choose therefore swings the result hard. The same net assets produce twice the monthly qualifying figure on a 15-year as on a 30-year, because the divisor is half as large — but the 15-year payment is much higher, so the DTI benefit is rarely a free lunch. This is illustrative math, not a quote, offer, or commitment to lend; your actual figures come from underwriting. The CFPB is direct that there is no universal cutoff on the other side of that ratio: “Different loan products and lenders will have different DTI limits.”
$1,500,000 documented assets − $250,000 for down payment and closing = $1,250,000 net documented assets
$1,250,000 ÷ 360 months = about $3,472 a month of qualifying income on a 30-year loan
Same file on a 15-year term: $1,250,000 ÷ 180 = about $6,944 a month — a shorter term divides by fewer months, so it produces a larger figure.
Illustrative only — your documented balances, term, and any withdrawal penalty set the real numbers. This is a qualifying figure, not a required withdrawal, and not a quote, offer, or commitment to lend.
Who qualifies for an asset depletion mortgage in Las Vegas?
Asset depletion mortgage borrowers in Las Vegas qualify when they own enough documented, accessible assets to carry the payment on paper and they fit Fannie Mae's occupancy, purpose, and leverage limits. Age is not a gate to entry, but it is a gate to leverage. Fannie Mae sets the ceiling plainly:
“Max LTV, CLTV, and HCLTV Ratio: 70%, or 80% if the owner of the asset(s) being used to qualify is at least 62 years old at the time of closing.”
Fannie Mae Selling Guide, B3-3.4-06 — Employment-Related Assets as Qualifying Income (updated March 4, 2026) — https://selling-guide.fanniemae.com/sel/b3-3.4-06/employment-related-assets-qualifying-income
Read that as a down-payment rule. Under 62, you are budgeting at least 30% down on a purchase; at 62 or older, 20% can work. Fannie Mae also restricts the program to a principal residence or second home and to purchases and limited cash-out refinances — so a Las Vegas rental purchase does not fit here. Investors typically use a DSCR loan qualified on the property's rent instead. Buying a Nevada getaway rather than a primary? Our second home loan guide for Las Vegas covers the occupancy tests that decide which bucket you land in.
The retiree
Living on portfolio and retirement withdrawals with modest reported income. Often the cleanest fit, and at 62+ gets the 80% LTV tier.
The recent seller
Sold a business or a property and is holding large liquid proceeds while the next income stream is still forming.
The relocating executive
Substantial brokerage balances, a new Nevada role that has not seasoned, and a purchase that will not wait for two years of tax returns.
How does asset depletion compare to bank-statement and full-doc loans?
Asset depletion, bank-statement, and full-doc mortgage paths differ mainly in what evidence carries your income. Full-doc reads pay stubs and tax returns. Bank-statement loans read deposit history, and are non-agency products aimed at self-employed borrowers. Asset depletion reads balances. The table below is a structural comparison of how each path is underwritten, not a rate or cost comparison.
| Feature | Asset depletion (Fannie Mae) | Bank-statement loan | Full documentation |
|---|---|---|---|
| What proves income | Documented liquid asset balances | 12–24 months of deposits | Pay stubs, W-2s, tax returns |
| Backing | Conforming, Fannie Mae | Non-agency / portfolio | Conforming or government |
| Max LTV | 70%, or 80% at age 62+ | Set by the individual investor | Up to 97% on a Conventional 97 |
| Occupancy allowed | Principal residence and second home only | Varies by investor, often includes investment | Primary, second, and investment |
| Loan purpose allowed | Purchase and limited cash-out refinance only | Varies by investor | Purchase, refinance, cash-out |
| Best suited to | Retirees and asset-rich buyers | Self-employed with strong deposits | Salaried and hourly borrowers |
The honest comparison is that most self-employed Las Vegas buyers should test full-doc first, because a conforming loan usually offers more leverage and fewer restrictions. Our guide to the self-employed and 1099 mortgage path in Las Vegas shows how underwriters read business returns before you assume the traditional door is closed. Asset depletion earns its place when the income genuinely is not there on paper and the assets genuinely are.
What loan limits and down payment apply to an asset depletion loan in Clark County?
An asset depletion mortgage under Fannie Mae's rules is a conforming product, so it must fit inside the annual conforming loan limit. For 2026 the Federal Housing Finance Agency set the baseline one-unit limit — the figure that applies in Clark County — at $832,750, an increase of $26,250 from 2025, announced November 25, 2025. The FHFA's high-cost ceiling for 2026 is $1,249,125, but Clark County is not a high-cost area, so the baseline is what governs a Las Vegas purchase. For the county-level detail, see our Nevada conforming loan limit guide for 2026.
Above $832,750, the file moves into jumbo loan territory, where asset-based qualifying still exists but is written to each investor's own overlays rather than the Selling Guide. Down payment follows the leverage cap: 30% at the 70% tier, 20% once the asset owner is 62 or older at closing. To sanity-check a price range against your assets first, run our Las Vegas affordability calculator.
Valley West takeFannie Mae is not the only route. Freddie Mac maintains its own asset-based qualifying option in Guide section 5307.1, with different eligibility and a different calculation period. We deliberately do not publish Freddie's divisor here because we could not confirm the current figure against the primary Guide text at publication. Ask your loan officer to price both agencies — the same balances can qualify differently depending on which one the file goes to.
How much qualifying income could your assets produce?
Your asset depletion mortgage qualifying income is net documented assets divided by the loan term in months, and the estimator below runs that arithmetic on your numbers. Enter what you can document, subtract the cash going to the down payment and closing, apply a penalty haircut if a retirement account would be hit by one, and pick your term. Everything it returns is an illustration, not an approval, a quote, or a commitment to lend.
Asset depletion qualifying-income estimator
Follows the Fannie Mae B3-3.4-06 method: net documented assets divided by the amortization term in months. Results update as you type.
Illustrative estimate only — not a quote, offer, approval, or commitment to lend. Eligible asset types, documentation, and the penalty treatment are determined by the lender and the investor under Fannie Mae Selling Guide B3-3.4-06. The result shown is a qualifying figure, not a required withdrawal.
What documents does an asset depletion file need?
An asset depletion mortgage file needs proof that the assets exist, are yours, and are accessible — usually two months of statements for every account you are counting. Underwriters read those statements for three things: the balance, the ownership, and any restriction. A 401(k) you cannot draw from without your employer's permission is not the same asset as a taxable brokerage account, and a joint account with a non-borrower raises an ownership question before it raises a balance question.
Expect to provide recent statements for each bank, brokerage, and retirement account; documentation of ownership where an account is held jointly or in a trust; and a paper trail for any large recent deposit, especially proceeds from a business or property sale. Funds already committed to your down payment and closing costs are subtracted, not counted twice. Borrowed money, gift funds not yet received, and assets you cannot access without restriction are generally excluded. Our conventional loan requirements checklist for Nevada covers the rest of the package.
One item buyers forget until the last week: a homeowners policy has to be bound before closing regardless of how you qualified. Our sister agency, Valley West Insurance, shops Las Vegas homeowners coverage across carriers, which keeps the insurance step from becoming the thing that delays a file that was otherwise ready.
Find out what your assets qualify for in Las Vegas.
Send Valley West a rough picture of your accounts, your target price, and your timeline. We will run the Fannie Mae calculation, check the 70% and 80% leverage tiers, and tell you honestly whether full documentation would serve you better. All financing is subject to approval.
Start an asset-based loan reviewIs an asset depletion mortgage right for your Las Vegas purchase?
An asset depletion mortgage is right for your Las Vegas purchase when documented assets are your real strength, the home is a primary residence or second home, and you can comfortably put 20% to 30% down. It is the difference between being told no by a system that only reads paychecks and being underwritten on what you actually have. For a retired buyer at 62 or older with a seven-figure portfolio and a target inside the conforming limit, it is often the most straightforward conventional path available.
It is the wrong tool in three situations: when you want maximum leverage, because 70% or 80% LTV is the ceiling; when you are buying a rental, because the program excludes investment property; and when you actually do have documentable income, because full documentation almost always offers better terms. Run both paths before you commit. That comparison takes one conversation with a licensed loan officer and can change your down payment by six figures.
The bottom line
An asset depletion mortgage lets a Las Vegas buyer qualify on documented liquid assets instead of employment income, using Fannie Mae's employment-related assets rules in Selling Guide B3-3.4-06. The lender divides net documented assets by the loan's amortization term in months, caps leverage at 70% LTV — or 80% when the asset owner is at least 62 at closing — and limits the program to primary residences and second homes on purchases and limited cash-out refinances. Keep the loan inside the 2026 Clark County conforming limit of $832,750, document every account you intend to count, and price the full-documentation alternative before you decide. Then run your real numbers with a licensed loan officer.
Frequently asked questions
What is an asset depletion mortgage?
An asset depletion mortgage is a conventional loan that converts your documented liquid assets into a monthly qualifying income figure instead of relying on a paycheck. Fannie Mae calls this employment-related assets as qualifying income. You are not required to withdraw or pledge the money; the assets are used only to calculate a qualifying figure.
Do you have to be 62 or older to use an asset depletion mortgage in Las Vegas?
No. Age 62 is not a minimum to use the program, but it changes the leverage available. Fannie Mae caps the LTV, CLTV, and HCLTV ratio at 70 percent, or 80 percent if the owner of the assets being used to qualify is at least 62 years old at the time of closing.
How is asset depletion qualifying income calculated?
Fannie Mae instructs the lender to divide net documented assets by the amortization term of the loan in months. On a 30-year loan that divisor is 360 months. Net documented assets are the eligible balances after subtracting funds used for the down payment and closing costs and any applicable early-withdrawal penalty.
Can you buy an investment property with an asset depletion loan?
Not under Fannie Mae's employment-related assets rules. The Selling Guide limits the program to a principal residence or second home, and to purchases and limited cash-out refinances. Las Vegas investors typically use a DSCR loan, which qualifies on the property's rent instead.
What assets count for an asset depletion mortgage?
Lenders generally count verified, liquid, borrower-owned balances such as checking and savings, brokerage accounts, and vested retirement accounts the borrower can access. Funds you cannot access without restriction, borrowed money, gift funds not yet received, and assets already committed to the down payment are excluded. Your lender confirms which balances are eligible.
How large can an asset depletion loan be in Clark County?
Fannie Mae's employment-related assets program is a conforming product, so the loan must stay within the conforming loan limit. For 2026 the baseline one-unit limit that applies in Clark County is $832,750, announced by the Federal Housing Finance Agency on November 25, 2025. Above that figure the file moves to jumbo underwriting.
Sources
- Fannie Mae Selling Guide B3-3.4-06: Employment-Related Assets as Qualifying Income — the 70%/80% LTV cap, the occupancy and loan-purpose limits, and the net-documented-assets divisor. Updated March 4, 2026 (Announcement SEL-2026-02).
- FHFA: Conforming Loan Limit Values for 2026 — the $832,750 baseline one-unit limit, up $26,250 from 2025, and the $1,249,125 high-cost ceiling; announced November 25, 2025.
- Freddie Mac Single-Family Seller/Servicer Guide 5307.1: Assets as a Basis for Repayment of Obligations — the Freddie Mac alternative to Fannie Mae's program; confirm current terms with your lender.
- CFPB: What is a debt-to-income ratio? — how the qualifying figure is used, and why DTI limits vary by product and lender. Last reviewed August 28, 2023.