Use Your Portfolio for a Nevada Jumbo Loan in 2026

What is an Asset Depletion Mortgage?

An asset depletion mortgage, sometimes called an asset amortization or asset utilization loan, is a powerful financing tool for high-net-worth individuals. Instead of relying solely on traditional income like a salary or W-2, this program allows lenders to calculate a hypothetical monthly income stream from your liquid assets. It’s designed for borrowers with substantial wealth but non-traditional or insufficient documented income to qualify for a large loan.

Think of it this way: the lender isn't requiring you to spend your assets. They are simply using the total value to justify your ability to repay the loan over time. This is a game-changer for retirees, entrepreneurs, or investors in Nevada’s luxury markets like Henderson, Summerlin, or Lake Tahoe.

Pledged Asset vs. Asset Depletion

It’s important to distinguish between two similar concepts:

• Asset Depletion/Amortization: This is the most common approach. Your assets remain in your accounts, untouched. The lender uses a mathematical formula to spread their value over a set period (e.g., 360 months) and treats the result as monthly income. The assets are not used as collateral for the loan.
• Pledged Asset Mortgage: In this scenario, you deposit assets into an account managed by the lender or a partner institution. These assets serve as collateral, directly securing the mortgage. This can sometimes lead to better interest rates or lower down payment requirements but involves less flexibility, as you cannot freely manage or move the pledged funds.

For most Nevada homebuyers in 2026, the asset depletion model offers the ideal balance of qualifying power and financial freedom.

Calculating Qualifying Income from Your Stock Portfolio

Lenders don't just guess at your portfolio's income potential; they use a specific and verifiable formula. The most common calculation is:

(Total Verified Asset Value - Funds for Down Payment & Closing Costs) / Amortization Period (in months) = Additional Monthly Income

Let's break this down with a realistic example for a home in Henderson.

• Scenario: You want to buy a $1.8 million home.
• Assets: You have a $3 million brokerage account.
• Down Payment: You plan to put down 20% ($360,000) plus $40,000 for closing costs.

First, the lender subtracts the funds needed for the transaction from your total assets: $3,000,000 (Total Assets) - $400,000 (Cash to Close) = $2,600,000 (Remaining Asset Base)

Next, the lender applies a ‘haircut’ to account for market volatility, especially with stock portfolios. A typical haircut is 30%, meaning they will only use 70% of the value for calculations. $2,600,000 * 0.70 (70% allowed value) = $1,820,000 (Qualifying Asset Value)

Finally, they divide this by an amortization term. A 30-year (360-month) term is common for jumbo loans, but some non-QM programs may use more aggressive, shorter terms to generate higher income. The data, information, or policy mentioned here may vary over time.

$1,820,000 / 360 months = $5,055 per month

This $5,055 is now added to your other sources of income on your mortgage application, dramatically increasing your purchasing power.

Why This Beats Selling Assets for a Down Payment

Using assets for a down payment by liquidating them is often a costly mistake. An asset depletion strategy provides two massive advantages: tax efficiency and sustained wealth growth.

The Capital Gains Tax Trap

When you sell appreciated assets like stocks, you trigger a taxable event. Long-term capital gains are subject to federal taxes of up to 20%, plus a potential 3.8% net investment income tax. While Nevada has no state income tax, the federal burden is significant.

• Example: Selling Assets: Imagine you need to sell $400,000 worth of stock for your down payment. Your cost basis (what you originally paid) for these shares was $150,000. This creates a taxable gain of $250,000.
  • $250,000 (Gain) * 23.8% (Max Tax Rate) = $59,500 in taxes
  • You just lost nearly $60,000 of your wealth that could have remained invested.
• Example: Asset Depletion: You use the same $400,000 for your down payment but keep the rest of your portfolio intact. You pay $0 in capital gains tax. Your investments continue growing, and you use their paper value to qualify for the loan.

Maintaining Your Investment Strategy

Your portfolio is designed for long-term growth. Cashing out a significant portion disrupts the power of compounding and can derail your retirement or wealth-building goals. Asset depletion allows your financial strategy to proceed uninterrupted while you secure your new home.

Eligible Investment Accounts for Nevada Asset Depletion Loans

Lenders need to see that your assets are liquid and accessible. While rules vary by lender, the following accounts are generally accepted for asset depletion calculations:

• Checking and Savings Accounts: 100% of the value is typically used.
• Money Market Accounts: 100% of the value is typically used.
• Certificates of Deposit (CDs): 100% of the vested value.
• Stocks, Bonds, and Mutual Funds: Held in a non-retirement brokerage account. These are usually subject to a haircut (e.g., 70% of value) due to market risk.
• Vested Retirement Funds: See specific rules below.

Assets that are generally ineligible include the value of other real estate, business operating accounts, cryptocurrency, and personal property like art or vehicles. The data, information, or policy mentioned here may vary over time.

Special Rules for Using Retirement Funds (401(k) or IRA)

Using retirement funds for asset depletion is possible but comes with strict guidelines, primarily centered around your age.

If You Are Retirement Age (59.5+)

If you are of legal retirement age, lenders view these funds as fully accessible without penalty. They will typically count 100% of your vested balance (or apply a standard stock/bond haircut) for the income calculation. This is a straightforward process.

If You Are Under Retirement Age

If you have not yet reached age 59.5, lenders must account for early withdrawal penalties and taxes. To do this, they apply a significant discount to the vested balance. It is common for a lender to use only 60% of the account’s value before starting the amortization calculation.

• Example: A 50-year-old homebuyer in Nevada has a $1.5 million vested 401(k).
  • A lender might only consider 60% of this value: $1,500,000 * 0.60 = $900,000.
  • This adjusted value is then used for the income formula: $900,000 / 360 months = $2,500 per month.

While the income is less than what a 60-year-old would get from the same portfolio, it can still provide the crucial boost needed for loan approval. The data, information, or policy mentioned here may vary over time.

Required Documentation for Your Portfolio

To verify your assets, you will need to provide meticulous documentation. Be prepared to submit complete, unredacted statements for all accounts you intend to use. Lenders will not accept screenshots or summary pages.

Here is a standard checklist:

• Full Account Statements: Two most recent monthly or quarterly statements for every asset account. This includes brokerage, 401(k), IRA, and bank accounts. Every single page is required, even the blank ones.
• Terms of Withdrawal: For any retirement or restricted account, provide the plan documents outlining the terms, conditions, and penalties for withdrawal.
• Proof of Vesting: For 401(k) or other employer-sponsored plans, a statement clearly indicating the vested balance.
• Chain of Custody for Large Deposits: If you moved large sums of money between accounts recently, be prepared to source the funds with paper trails.

How Asset Depletion Impacts Your Debt-to-Income (DTI) Ratio

The entire purpose of an asset depletion program is to improve your debt-to-income (DTI) ratio. DTI is the percentage of your gross monthly income that goes toward paying your monthly debts. Lenders use it as a primary measure of your ability to manage payments.

Let's see its impact with a final, clear scenario.

• The Buyer: An entrepreneur in Lake Tahoe with a documented monthly income of $12,000. They have $2,500 in monthly debts (car payments, credit cards) and want to buy a luxury home with a proposed monthly mortgage payment of $8,000.

Scenario 1: Without Asset Depletion

• Gross Monthly Income: $12,000
• Total Monthly Debts: $2,500 (existing) + $8,000 (new mortgage) = $10,500
• DTI: $10,500 / $12,000 = 87.5%
• Result: The loan is immediately denied. A DTI over 50% is rarely approved for jumbo loans.

Scenario 2: With Asset Depletion

• The buyer has a $4 million investment portfolio. After subtracting cash to close, the qualifying asset base is $3.5 million.
• The lender uses 70% of the value ($2,450,000) and amortizes it over 240 months.
• Additional Monthly Income: $2,450,000 / 240 = $10,208

Now, let's recalculate the DTI.

• Total Gross Monthly Income: $12,000 (documented) + $10,208 (from assets) = $22,208
• Total Monthly Debts: $10,500
• New DTI: $10,500 / $22,208 = 47.3%
• Result: This DTI is within the acceptable limits for many non-QM and jumbo loan programs. The buyer is now in a position to be approved. The data, information, or policy mentioned here may vary over time.

If you're exploring jumbo financing in Nevada, understanding how your portfolio can work for you is the first step. A conventional approach may not fit your financial profile. Contact a mortgage strategist to analyze your assets and map out a clear, tax-efficient path to approval for your luxury home.

Ready to see how your portfolio can unlock the door to your luxury Nevada home? Take the first step and Apply now to connect with a mortgage strategist who can analyze your assets and map out a clear, tax-efficient path to approval.

Author Bio

David Ghazaryan is the expert mortgage strategist and founder behind iQRATE Mortgages. With a mission to fund home loans that traditional banks won't touch, David specializes in helping clients with unique financial situations, including those recovering from foreclosure or bankruptcy. He expertly crafts smart, strategic, and stress-free mortgages by leveraging a vast network of over 100 lenders to secure competitive rates for investors and homebuyers alike. Praised for exceptional customer service, David has helped hundreds of families with a 97% satisfaction rate, guiding them to the mortgage they deserve.

References

Consumer Financial Protection Bureau - What is a debt-to-income ratio?

Fannie Mae - Asset Documentation