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A lot of Downriver households have more in retirement accounts than they have in a current W-2. That is not a joke application. Fannie Mae and Freddie Mac each have rules for turning documented assets into qualifying income – shops call it asset depletion or employment-related assets as income. It is not a Non-QM slogan, and it is not “the bank will just look at my brokerage.”
Joseph Migliaccio (NMLS #940908) at Mortgage 1, Downriver (company NMLS #129386) is a mortgage lender / mortgage banker helping Woodhaven, Trenton, Southgate, Taylor, Wyandotte, Brownstown, Riverview, Gibraltar, and Flat Rock borrowers compare a full-doc income story vs an asset-based qualifying path. Educational only. Start at mortgage1downriver.com.
What asset depletion is trying to solve
Some borrowers are retired, between W-2 jobs, or living on a mix of Social Security, pension, and savings. Traditional qualifying wants a job history. Asset-based qualifying asks a different question: after we document the accounts you can actually access, does the calculated monthly figure support the proposed payment?
Fannie’s topic lives in the Selling Guide under employment-related assets as qualifying income (currently B3-3.4-06 after the 2026 income-chapter reorganization). Freddie has its own “assets as a basis for repayment” rules. They are not the same worksheet. We do not pretend they are.
What changed in 2026 – without inventing a haircut
Fannie Mae announcement SEL-2026-02 restructured Chapter B3-3 (Income Assessment) so income types are easier to navigate. Lenders could apply the update immediately and had to implement it for applications dated on or after June 1, 2026. Some items in that announcement are new policy. The employment-related-assets section was also restated for clarity. That is why a video circulating among loan officers talked about an “asset depletion change” – the Guide moved, and some related income topics actually changed.
We will not publish a blog that quotes a universal 70% haircut, a magic divisor, or an LTV cap as if every investor uses the same number. Those figures are program-specific and they move. Mortgage 1 runs the current Guide and investor overlays on your accounts.
- Access matters. If you cannot take a distribution, it may not count.
- Funds needed for down payment and closing are not also available as income.
- Early-distribution tax and penalty can reduce what counts for younger borrowers. Age-based treatment is in the Guide – we apply it; we do not treat it as a talking point.
Downriver situations where this actually comes up
A Trenton or Wyandotte household sitting on a 401(k) after a plant retirement. A Woodhaven widow with a brokerage and thin W-2. A Southgate couple who sold a business and parked the proceeds. Those are conversations. A 28-year-old with $12,000 in a Roth is not this product.
Wayne County taxes and insurance still sit in the payment. Asset income that “works” on a national calculator can fail when we use the real Woodhaven or Taylor tax bill.
Plant retirements, UAW pensions, and a 401(k) rollover after a Downriver layoff are the local pattern. We still need unrestricted access and clean statements. A screenshot from a phone app is not documentation. If the account is in a spouse’s name only, that is a different conversation than a joint account. Bring the statements in the legal name that will be on the mortgage.
Asset path vs full doc vs a different investor
- Full documentation – paystubs, W-2s, returns. Still the cleaner path when the job exists.
- Agency asset-as-income – Fannie or Freddie rules, documented accounts, occupancy and LTV overlays that we verify on the live Guide.
- Non-QM asset depletion – a different investor matrix. Not Fannie. Not interchangeable.
We compare those lanes on your numbers. No APR promise. No “always qualify if you have a million in the market.”
Documents to bring
Latest statements for every account you want counted, how you will take the down payment out of those same accounts, Social Security/pension award letters if any, and the address. If crypto is in the picture, say so – agency treatment is strict and often excludes it.
FAQ
Is this only for people over 62?
No. Age can change how some accounts are treated. It is not an automatic on/off switch. We read the current Guide for your age and account type.
Can I use the same dollars for down payment and for qualifying income?
Generally no. Money spent to close is not also income. We split the statements on purpose.
Does a large 401(k) guarantee approval?
No. Access, occupancy, LTV, credit, and the property still have to underwrite.
Where is the official write-up?
Start with Fannie Mae SEL-2026-02 and the current Selling Guide income chapter. Freddie’s guide is separate. Joe can walk a Downriver application against both – we do not substitute a YouTube summary for the Guide.
Next step
Start an asset-vs-full-doc review at mortgage1downriver.com. Bring statements and the house you want to occupy. Joseph will tell you whether an agency asset path, full doc, or a different investor is the loan that can close in Downriver.
Joseph Migliaccio – Mortgage 1, Downriver – Woodhaven, MI – NMLS #940908 | Company NMLS #129386
Equal Housing Opportunity. Joseph Migliaccio, NMLS #940908. Mortgage 1, Inc., NMLS #129386. Licensed mortgage lender / mortgage banker. Educational content only, not a commitment to lend. Fannie Mae and Freddie Mac guidelines change. SEL-2026-02 and the current Selling Guide control agency treatment – not this article. All loans subject to credit approval, property eligibility, and investor overlays. Verify licensing at NMLS Consumer Access.