Asset Dissipation

Asset dissipation, sometimes called asset depletion, is a way to sell your assets instead of employment to qualify for a loan. The loan underwriter uses the applicant’s liquid assets including checking and savings accounts, IRAs, and 401Ks. Then, they divide the amount of the total liquid assets by the term of the loan to calculate your monthly income.

Asset dissipation is useful for anyone with limited employment income. Retirees, self-employed, or even unemployed customers are able to show steady income to prove they can pay the monthly payments on the loan.

An asset dissipation loan allows you to qualify for a loan even if you do not have employment income. The loaning bank evaluates your application by adding your monthly Social Security income, any other income, and the asset depletion income together.