Eligible Assets for Asset Depletion

Which assets count toward asset depletion qualification and how lenders value each type

Not all assets qualify for asset depletion calculations. Lenders apply specific eligibility rules and discount rates to each asset type. Understanding what counts—and at what value—helps you determine whether you have enough for this program.

Fully Eligible Assets (100% of Value)

Checking and savings accounts — Cash on deposit is fully eligible. Lenders typically require 2-3 months of statements to document the balance and confirm funds are seasoned (not recently deposited from an undisclosed source).

Money market accounts — Treated the same as savings accounts. Fully liquid and fully eligible.

Certificates of deposit (CDs) — Eligible if accessible without substantial penalty. Lenders may discount CDs with long remaining terms or large early withdrawal penalties.

Eligible at a Discount

Investment accounts (stocks, bonds, mutual funds) — Typically eligible at 70-80% of current value. The discount accounts for market volatility—lenders don’t want to count assets that could decline significantly.

Retirement accounts (401k, IRA, SEP-IRA) — Typically eligible at 60-70% of value. The discount reflects income tax and potential early withdrawal penalties on distributions. If you’re over 59½, some lenders use a higher percentage.

Ineligible or Rarely Eligible

Business accounts and business assets — Assets held in a business entity are generally not eligible unless the borrower has 100% ownership and can document full access.

Real estate equity — Equity in property is not liquid and therefore not eligible. Proceeds from a pending sale may be eligible if the sale is documented and closing is imminent.

Restricted stock units (RSUs) and unvested equity — Not eligible until vested. Vested RSUs in a brokerage account are eligible like other stock holdings.

Cryptocurrency — Most lenders do not accept cryptocurrency. A small number of lenders allow it with significant discounts and strict documentation requirements.

Assets pledged as collateral — Assets already securing another debt are not available for depletion.

Documenting Asset Value

Lenders require recent statements—typically within 60-90 days of application—for each account:

Account Type	Typical Documentation
Bank accounts	2-3 months of statements
Investment accounts	Most recent statement showing holdings and value
Retirement accounts	Most recent statement
CDs	Statement or certificate showing balance and maturity

Large deposits in the most recent statements (within 60-90 days) require sourcing documentation, same as with bank statement loans.

Minimum Asset Requirements

Most lenders require $500,000 to$1,000,000 or more in eligible assets before applying their depletion formula. The minimum varies by lender and loan amount. A larger loan requires a larger asset base to produce sufficient qualifying income.

After Down Payment and Closing Costs

Eligible assets are counted after subtracting the down payment and estimated closing costs. Only the assets remaining after closing are available for the depletion calculation—you can’t count money that won’t be there after funding.