Asset Depletion Loan Program

Our Asset Depletion Loans are offered in: California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Oregon, Rhode Island, South Carolina, and Washington D.C.


How the Program Works

  • Asset depletion is used to establish monthly income for borrowers based on their liquid assets
  • Automated calculator uses a 4% rate of return on the assets PLUS a depletion amount based on the borrower’s age and Social Security Administration’s life expectancy
  • Asset depletion calculator can be found on the Northstar Funding website at under Broker Resources or your AE can send you a copy
  • Assets are used at 100% face value including retirement accounts (retirement only used if borrower is age 59 1/2 or older)

Calculator Example

Calculator example for 72 year old borrower purchasing a $275,000.00 home.

In this example you can use $7,723.00 as monthly income on the 1003 under “other types of income”.


The Northstar Funding Difference

  • Loan sizes as large as $3 million and as small as $100K allowed
  • Up to 75% LTV for owner occupied and 2nd homes including Non-Warrantable Condos, Co-ops, Condotels and Cash Out
  • Investment properties allowed up to 60% LTV including cash out
  • Northstar Funding allows up to 10 financed units and 15 total REO including cash out loans
  • Assets are used at 100% face value with no reduction for stocks, bonds, mutual funds or other publically traded accounts
  • Cash out can be used in the calculator as income on a case by case basis
  • No rate adjustments apply to the program – please note max LTV is 75%
  • Northstar Funding does not:
    • Require active depository relationship ($5 membership account required)
    • Require pledged funds
    • Solicit the borrow to transfer assets This is a key benefit to generate leads from Financial Planners, Wealth Managers and Investment Planners
  • Only one appraisal required regardless of loan amount or cash out
  • Asset depletion can be used in conjunction with all other income sources such as W
    2, self- employed, pension, Social Security or rental income
  • All specialty programs can be used in conjunction with asset depletion and all collateral types are allowed i.e.:
    • Multi Family
    • Hobby farms/acreage
    • Work Visa/Expat
    • No Credit/Limited Credit
    • 2-4 family
    • Non-warrantable Condos
    • Co-ops
    • Condotels
    • Cash Out

Points to Remember

  • Assets must be held in U.S. account
  • REITs, Hedge Funds, Venture Capital, Notes Payable or other private investments typically cannot be used
  • Funds inside an annuity and cash value or life insurance cannot be used
  • Trust assets can be used if the borrower has 100% unrestricted access to the funds and all trust documents and asset statements are provided
  • Accounts shared by borrower and co-borrower can be used using the elder borrower’s age
  • Reserve requirement is not deducted from the assets when populating the calculator

Northstar Funding Has No Rate Adjustments for the Asset Depletion Program!

Pricing Example:

No rate adjustment for  the program.

Asset depletion max LTV is 75% for owner occupied or 2nd home.

Asset Depletion Arm Product Features

  • Max DTI 43%
  • 75% LTV up to $1 million loan amount with reduced LTVs up to $3 million
  • 30 year amortization
  • No prepayment penalty
  • 2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor = Note Rate
  • Qualify at the start rate on 7/1, 2% over on the 5/1 and 6% over on the 3/1
  • Escrows generally required