Mortgage Navigator • Jumbo Underwriting

Jumbo Asset Depletion

A borrower can have enormous wealth and modest taxable income. Asset-depletion programs are designed for that mismatch.

Concept

An investor may convert eligible liquid or retirement assets into a monthly qualifying-income amount using its own formula, eligible-asset percentages, depletion period and age/access rules.

Avoid double counting

Assets used for down payment, closing costs or required reserves may need to be removed before an income calculation. Exact treatment is investor-specific.

Investor rule or lender overlay? Jumbo mortgages do not have one Fannie/Freddie-style national underwriting handbook. A requirement may come from the end investor, a lender's own overlay, a specific product matrix, or the facts of the file. Hard thresholds should be verified against the actual program being offered.

Reference framework

FHFA conforming loan limits establish the conforming/jumbo boundary. For complex income concepts, the Fannie Mae income framework and Selling Guide provide useful conforming reference points—but a jumbo investor may calculate or document the same income differently.