Florida Asset Depletion Mortgage: Smart Lending for High-Asset Borrowers

Why Florida Borrowers Use Asset Depletion Mortgages

Florida is a top destination for retirees, entrepreneurs, and real estate investors—many of whom are asset-rich but income-light. Whether you’re buying a waterfront condo in Miami or a rental in Tampa, a Florida asset depletion mortgage lets you leverage your savings, not your paycheck, to qualify for financing.

This is especially powerful in a state with no personal income tax and a booming housing market.

What Is a Florida Asset Depletion Mortgage?

An asset depletion mortgage allows you to qualify for a loan based on your liquid assets—checking, savings, investment accounts, or retirement funds—instead of traditional income like W-2s or tax returns.

Lenders “deplete” or amortize your assets over a set period (usually 60 to 120 months) and treat the result as your monthly qualifying income.

For example:

• $960,000 in assets / 120 months = $8,000/month of qualifying income

This figure is then used in standard mortgage underwriting calculations.

Who Should Consider an Asset Depletion Loan in Florida?

This program is ideal for:

• Retirees living off investments or pensions
• Real estate investors with irregular income
• High-net-worth individuals with large savings or portfolios
• Self-employed business owners with high expenses but solid assets
• Part-time residents or snowbirds buying second homes

Benefits of Asset Depletion Loans in Florida

✅ No Tax Returns or W-2s Needed

Perfect for borrowers who report low income due to legal write-offs or self-employed status.

✅ Excellent for Second Homes & Investment Properties

Florida’s vacation home and rental markets are strong—this loan makes investing easier.

✅ Florida-Friendly Lending

Many Florida lenders are experienced with asset-based loans due to the state’s retiree-heavy population.

✅ Can Be Used with Jumbo Loans

Asset depletion programs are often available on loans up to $3–5 million, which helps in luxury areas like Naples, Palm Beach, and Miami.

Minimum Requirements for Florida Asset Depletion Loans

While guidelines vary, typical lender requirements include:

• Minimum Credit Score: 680–700+
• Assets Required: $500,000–$1,000,000 in eligible accounts
• Down Payment: 20–30% (some programs go lower)
• Loan Purpose: Primary, secondary, or investment use
• Eligible Property Types: Condos, single-family homes, townhomes, non-warrantable condos (case-by-case)

Eligible Assets That Can Be Depleted

✅ Included:

• Checking & savings accounts
• Brokerage accounts (stocks, ETFs, mutual funds)
• Trust funds (if accessible)
• Retirement accounts (discounted based on age or withdrawal ability)

❌ Not Included:

• Real estate equity
• Business accounts not in your name
• Assets pledged for other loans or obligations

Florida-Specific Insights and Use Cases

• Retirees: Buy in Sarasota, The Villages, or Boca Raton using retirement savings—even without a pension or job.
• Investors: Acquire rental properties in Tampa, Orlando, or Jacksonville while showing little personal income.
• Luxury Buyers: Finance second homes in Miami Beach or Naples with ease by using non-retirement liquid funds.

Alternatives to Asset Depletion Loans in Florida

If you’re not a fit for this program, consider:

🏦 Bank Statement Loans

Use 12–24 months of business deposits instead of tax returns.

🏠 DSCR Loans (Debt Service Coverage Ratio)

Perfect for real estate investors qualifying based on rental income, not personal income.

💼 Portfolio Loans

Private banking solutions for ultra-high-net-worth borrowers with unique asset structures.

Final Thoughts: Is Asset Depletion Right for You?

If you’re buying property in Florida and have significant liquid assets—but limited documentable income—an asset depletion mortgage might be your smartest financing option in 2025.

You’ll gain access to flexible loan terms, higher approval rates, and potentially lower documentation hurdles than traditional underwriting methods.