Asset Depletion HELOC
Large savings or retirement balances but a smaller paycheck? At least one HELOC we offer can turn eligible account balances into qualifying income.
What an asset depletion HELOC requires
Each item below is a requirement of at least one HELOC program we offer.
- Asset income comes from eligible accounts you connect, such as a 401(k), IRA, Roth, brokerage, money market, CD or savings account.
- If you are 59.5 or younger, retirement accounts count at 70% of their value. Over 59.5, they count at 100%.
- Asset depletion is calculated automatically once an eligible account is connected.
- Your debt-to-income ratio, counting the new line, can be up to 50% on a one-unit home and 45% on 2 to 4 units.
- A credit score of 640 or higher is required, 680 for a second home or investment property (not offered in some states, including Texas and New York, or above $400,000), and 760 for a line above $400,000.
- Only one applicant is allowed, and an ITIN cannot be used in place of a Social Security Number.
Savings become income
Retirement accounts count
Earnings and assets combined
Room under the DTI cap
A path to a larger line
Clear rules by age
How Does An Asset Depletion HELOC Work?
Eligible balances are converted into a monthly income amount and added to your other income for the debt-to-income check.
At least one program accepts 25 account types, including 401(k), 403(b), 457(b), 401(a), IRA, Roth, Roth 401(k), SEP IRA, SIMPLE IRA, Keogh, thrift savings plan, pension, profit sharing plan, fixed and variable annuities, brokerage, mutual fund, stock plan, money market, CD, savings and cash management accounts. Retirement balances count at 70% if you are 59.5 or younger and at 100% if you are older.
Income can be a mix of earnings and asset depletion. If your stated income leaves your debt-to-income ratio above the cap, you can enter summary balances of your retirement, investment and savings accounts to recalculate it. Every balance is verified later. If the recalculated ratio still does not qualify, the application is declined.
Assets can also raise the line. If your largest offer is limited only by debt-to-income, you can ask for a larger amount by adding qualifying assets to your income. If you are self-employed and your tax return shows your income well, see our one year tax return HELOC page.
Why choose Saxton for an asset depletion HELOC
This page is for homeowners, including retirees, whose savings and investments are larger than their monthly income.
Your Savings Become Income
Eligible balances are turned into a monthly income amount and added to your other income when your debt-to-income ratio is calculated.
Full Value After 59.5
Over age 59.5, retirement accounts count at 100% of their value. At 59.5 or younger, they count at 70%.
Earnings And Assets Together
Income can combine earnings and asset depletion. Social Security, disability and VA income can be verified as well.
Assets Can Lower Your DTI
If your ratio is over the cap, adding assets recalculates it. The cap is 50% on a one-unit home and 45% on 2 to 4 units.
Lines Up To $750,000
At least one program offers owner-occupied lines up to $750,000 with a 760 score. Above $400,000, an appraisal is required: one the program already has, or a new one.
Clear On What Does Not Count
Accounts outside the eligible list are not used for asset depletion. The program that offers it allows one applicant only, though a spouse’s income can be included in the income you state.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using your assets to qualify for a HELOC.
At least one program accepts 25 account types, including 401(k), IRA, Roth, SEP IRA, 403(b), 457(b), thrift savings plan, pension, annuities, brokerage, mutual fund, money market, CD and savings accounts.
At 59.5 or younger, retirement balances count at 70% of their value. Over 59.5, they count at 100%. Other eligible accounts, such as savings and brokerage, are added on top.
No. It is calculated automatically for any applicant who connects an eligible account, and it can be combined with earnings. Age changes how retirement accounts count.
They can help. If your ratio is above the cap, you can enter your retirement, investment and savings balances to recalculate it. If it still does not qualify, the application is declined.
Yes, if your largest offer is limited only by debt-to-income. You can request a larger amount and provide a summary of your assets, and the offer is recalculated.
Yes. Income can combine earnings and asset depletion. At least one program verifies Social Security, disability and VA income, and pension accounts are on the eligible asset list.
We can confirm it at one program. That program allows one applicant only, does not accept an ITIN in place of a Social Security Number, and needs a 640 score or higher.
Find out what you qualify for
Tell us what accounts you hold and what you want the line for, and we will show you the options that fit.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.