Michigan Asset Depletion Loans
💎 For High-Net-Worth Borrowers
Edward Kalavitz · Michigan Mortgage Lender & Broker · MLO NMLS #138424 · Private Mortgage Guarantee LLC · Licensed Michigan Realtor #6501386956 · Turnkey Realty LLC
In This Guide — Michigan Asset Depletion Loans
Have significant assets but limited documented income? Michigan asset depletion loans let you qualify for a mortgage using your investments, savings, and retirement accounts. Perfect for retirees, high-net-worth individuals, and those with substantial wealth. Learn how with Edward Kalavitz, your trusted Michigan mortgage broker.
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What Are Michigan Asset Depletion Loans?
Michigan asset depletion loans (also called asset qualifier, asset utilization, or asset-based loans) allow borrowers to qualify for a mortgage using their liquid assets instead of traditional employment income. Rather than showing pay stubs and W-2s, you use your investments, savings, and retirement accounts to demonstrate your ability to make mortgage payments.
These Michigan asset depletion loans are perfect for Michigan borrowers who have accumulated significant wealth but don’t have—or can’t easily document—regular employment income. Michigan asset depletion loans recognize that your financial strength isn’t always reflected in a paycheck.
As a Michigan mortgage broker with over 25 years of experience, I help high-net-worth borrowers throughout all 83 Michigan counties find financing solutions. If you are considering Michigan asset depletion loans and have assets but limited documented income, there’s likely a path to homeownership with Michigan asset depletion loans. I’ve helped dozens of Michigan borrowers use Michigan asset depletion loans to achieve their real estate goals.
💡 Perfect for Retirees
Many retirees have substantial 401(k)s, IRAs, and investment accounts but limited “income” on paper. Michigan asset depletion loans let you use those assets to qualify, even without Social Security or pension income.
How Michigan Asset Depletion Loans Work
The Basic Concept
Traditional lenders want to see income—pay stubs, W-2s, tax returns. But what if your “income” is sitting in investment accounts? Michigan asset depletion loans solve this by converting your assets into a monthly income figure.
Here’s the basic formula:
- Step 1: Total your eligible liquid assets
- Step 2: Subtract down payment, closing costs, and required reserves
- Step 3: Divide remaining assets by a set number of months
- Step 4: Result = Your qualifying monthly “income”
Why This Makes Sense
If you have $1,000,000 in liquid assets, you clearly have the financial resources to make mortgage payments. Michigan asset depletion loans simply provide a framework to quantify that ability in terms lenders can underwrite. Michigan asset depletion loans are one of the most powerful non-QM tools available today.
How Income Is Calculated
Asset Depletion Income Calculation Example
Division Period Varies by Lender
Different lenders use different divisors for Michigan asset depletion loans:
- 360 months: Full 30-year amortization (most conservative)
- 240 months: 20-year period (more income)
- 84 months: 7-year period (highest income, harder to qualify)
- 60 months: 5-year period (some lenders)
⚠️ Retirement Account Discounts
Retirement accounts (401k, IRA) are often counted at 60–70% of value to account for taxes and early withdrawal penalties. A $500,000 IRA might only count as $300,000–$350,000 in eligible assets for Michigan asset depletion loans.
Who Qualifies for Michigan Asset Depletion Loans?
Ideal Candidates
- ✓ Retirees: Living off investments, Social Security, pensions
- ✓ High-net-worth individuals: Significant liquid assets, variable income
- ✓ Trust fund beneficiaries: Receiving distributions from trusts
- ✓ Recently sold business: Large payout, no current employment
- ✓ Inheritance recipients: Significant liquid inheritance
- ✓ Early retirees (FIRE): Living off investment portfolio
- ✓ Between jobs: Substantial savings, transitioning careers
- ✓ International executives: Complex global income, US assets
✓ Real Example
A 62-year-old retiree with $1.5 million in IRAs and brokerage accounts but only $24,000/year in Social Security couldn’t qualify for a conventional loan. With Michigan asset depletion loans, they qualified for a $400,000 mortgage using their investment portfolio. Cases like this are exactly why Michigan asset depletion loans exist.
Eligible Assets for Michigan Asset Depletion Loans
Michigan Asset Depletion Loan Requirements
To qualify for Michigan asset depletion loans, borrowers must meet the following standards. Requirements vary by lender, so working with a broker who offers multiple options is key.
Michigan Asset Depletion Loan Rates and Costs
Interest Rates
Michigan asset depletion loans rates are typically 1–2% higher than conventional loans since they’re non-QM products. Current rates generally range from 7–9%, depending on:
- Credit score
- Down payment amount
- Loan-to-value ratio
- Asset level and liquidity
- Property type
Typical Costs
- Origination fee: 1–2 points
- Closing costs: 2–4% of loan amount
- No PMI: Typically not required with 20%+ down
Despite the higher rates, Michigan asset depletion loans often make more financial sense than liquidating investments to show traditional income — especially in a strong market.
Asset Depletion vs Other Loan Types
Wondering how Michigan asset depletion loans compare to other non-QM and conventional options? Here is a quick side-by-side breakdown:
The Michigan Asset Depletion Loan Process
Initial consultation
Review your assets and goals with your Michigan asset depletion loans specialist
Asset documentation
Gather 2–3 months of statements for all accounts
Pre-qualification
Lender calculates qualifying income from assets
Home search
Find your Michigan home — your Michigan asset depletion loans pre-approval letter shows sellers you are ready to close
Full application
Submit complete documentation
Underwriting
Lender verifies assets and calculates DTI
Appraisal
Property valuation
Closing
Sign documents and get your keys!
📄 Documentation Needed
№ 012–3 months statements for all asset accounts, government-issued ID, property information, and credit authorization. No pay stubs, W-2s, or tax returns required for Michigan asset depletion loans.
⏱ Timeline
№ 02Michigan asset depletion loans typically close in 3–4 weeks—similar to conventional loans. The underwriting process is straightforward once assets are verified. Most borrowers find Michigan asset depletion loans no more complex than a standard mortgage.
Frequently Asked Questions About Michigan Asset Depletion Loans
QWhat is an asset depletion loan?
An asset depletion loan (also called asset qualifier or asset-based loan) is a mortgage that uses your liquid assets to calculate qualifying income instead of traditional employment income. Your assets are divided over a set period to create a monthly income figure for qualification purposes.
QWho qualifies for a Michigan asset depletion loan?
Michigan asset depletion loans are designed for borrowers with significant liquid assets but limited documented income. Ideal candidates include retirees living off investments, high-net-worth individuals, trust fund beneficiaries, those between jobs with substantial savings, and anyone with assets but non-traditional income.
QHow is income calculated on an asset depletion loan?
Lenders calculate income by dividing your eligible assets by a set number of months (often 360 for a 30-year loan). For example, $1,000,000 in assets ÷ 360 months = $2,778/month qualifying income. Some lenders use 70% of assets to account for taxes and market fluctuations.
QWhat assets qualify for asset depletion loans in Michigan?
Qualifying assets for Michigan asset depletion loans typically include checking and savings accounts, stocks and bonds, mutual funds, money market accounts, retirement accounts (often at 60–70% value), and other liquid investments. Non-liquid assets like real estate, business equity, and personal property typically don’t qualify.
QWhat is the minimum asset amount needed?
Michigan asset depletion loans typically require enough assets to cover the down payment, closing costs, required reserves, and generate sufficient monthly income to qualify. Most borrowers need at least $500,000 to $1,000,000+ in liquid assets, depending on the loan amount and program requirements.
QAre asset depletion loan rates higher than conventional?
Yes, Michigan asset depletion loan rates are typically 1–2% higher than conventional loans because they’re non-QM products with alternative qualification methods. However, for borrowers who can’t document traditional income, these loans provide homeownership opportunities that wouldn’t otherwise exist.
QCan I use retirement accounts for Michigan asset depletion loans?
Yes! Retirement accounts like 401(k)s, IRAs, and 403(b)s can be used for Michigan asset depletion loans. However, they’re typically counted at 60–70% of value to account for potential taxes and early withdrawal penalties. Roth IRAs may be counted at a higher percentage since withdrawals are tax-free.
QHow long does it take to close a Michigan asset depletion loan?
Michigan asset depletion loans typically close in 3–4 weeks, similar to conventional loans. The underwriting process is straightforward once assets are verified. You’ll need 2–3 months of statements for all asset accounts, and no pay stubs, W-2s, or tax returns are required. Contact me to learn more about Michigan asset depletion loans and get started.
Free Tools & Next Steps
📊 See Which Michigan Asset Depletion Loans You Qualify For
Our free Mortgage Advisor analyzes your situation and shows real rates for Michigan asset depletion loans and other non-QM programs — with a personalized recommendation in 60 seconds.
🏠 Know Your Property Value Before Applying
For Michigan asset depletion loans, your home’s value determines your loan-to-value ratio and down payment requirement. Check your estimate instantly.
📄 Ready to Move Forward? Get Pre-Approved Today
Once you confirm your assets qualify, the next step for your Michigan asset depletion loans is a pre-approval letter. Generate yours online or start a full application.
Related Resources
Non-QM Loans
All alternative loan options
Learn More →Bank Statement Loans
Self-employed financing
Learn More →Jumbo Loans
High-value home financing
Learn More →All Loan Programs
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See All Programs →Why Work With Edward Kalavitz
Dual-licensed Michigan Mortgage Loan Originator (NMLS #138424) and licensed Michigan Realtor (#6501386956) — so the financing and the property are handled by one person who answers for both.
You are never required to use Edward for both. Financing and real estate representation are separate services — you are free to use any lender or any agent you choose, and use of one service is never a condition of the other.
Why Work With Me?
- ✓ 25+ years mortgage experience
- ✓ Asset depletion specialist
- ✓ Multiple lender options
- ✓ High-net-worth expertise
- ✓ Available 7 days a week
- ✓ Serving all of Michigan
Asset Depletion Quick Facts
- ✓ Assets: $500K–$1M+ needed
- ✓ Down payment: 10–25%
- ✓ Employment: Not required
- ✓ Tax returns: Not needed
- ✓ Credit: 660–700+
- ✓ Retirement accounts: OK
Popular Loan Programs: → Non-QM Loans → Bank Statement Loans → Jumbo Loans → Conventional Loans → All Loan Programs
Helpful Resources: 📊 Mortgage Calculator ❓ Mortgage FAQ 🔍 NMLS Consumer Access 🏛 CFPB
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Get to know Edward Kalavitz — learn how he helps Michigan families buy, sell, and finance homes with dual-licensed real estate and mortgage expertise.
What Clients Say About Working with Edward
These are verified Google reviews from Edward’s Google Business Profile. Edward is dual-licensed — Mortgage Loan Originator (NMLS #138424) and Michigan Realtor — so reviewers include both financing and real estate clients. Your Michigan mortgage broker can tell you how much room this leaves you.
“Very Professional and Thorough”
“Edward’s is very professional and thorough. Had a great experience working with him. Everything went very smooth.”
“Great to Have 2 in 1”
“Ed was very responsive, knowledgeable, and made our first home buying experience great! He’s a relator and lender, which was great to have “2 in1”. We were able to look at houses and run number the same day. He was very flexible with times we needed to set up showings, as well as very informative and organized with paperwork! I appreciate his expertise greatly!” Ask your Michigan mortgage broker to sanity-check the numbers you have been quoted.
“Works Hard 24/7”
“Ed is wonderful to work with! He is very thorough, experienced, and friendly. Ed works hard 24/7 to give you the best mortgage experience and is always able to help with whatever you need!”
“Above and Beyond”
“Edward is a great relator and loan officer. He helped my fiance and I buy our first home. We called him back when we were ready to sell and buy our forever home. He again went above and beyond to make the process swift and easy. I recommend him to my friends and family who are looking into buying, selling or refinacing their home!”
“Closing Came Sooner Than Anticipated”
“Edward was up front, professional and most helpful in first determining if I was a good candidate for a mortgage re-Fi. My case was Probably not the easiest , however, he made my “homework” manageable. The closing came sooner than anticipated , thanks to his perseverance, knowledge and professionalism .”
“Not Only My Realtor — My Friend”
“Edward was an excellent help in the most stressful time of my life. My son passed away in 2018 and I had to sell his home. Edward alleviated some stress by being patient, organized and communicated thoroughly the entire process. He not only was my realtor/loan officer but he was my friend! Highly recommend him for any home needs!”
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