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Last updated: Sept 2026. By Alvaro Moreira, NMLS #148581. Moreira Team | MortgageRight. MortgageRight NMLS #2239; Atlanta Branch NMLS #1285851.
If your tax returns do not tell the whole story of your finances, you have probably heard of two Non-QM options: bank statement loans and asset depletion loans. Both help strong borrowers who do not fit the standard W-2 paperwork. They measure very different things, though, and choosing the right one can change how much you qualify for.
The short answer
- A bank statement loan looks at money flowing in. It suits Georgia business owners and self-employed borrowers with steady deposits whose tax returns understate their income.
- An asset depletion loan looks at money you already have. It suits retirees, high-net-worth buyers, and anyone with large savings but modest or irregular income.
Both are legitimate ways to meet the federal ability-to-repay rule, which lets a lender rely on your income or your assets.
How each loan measures your income
Bank statement loans use 12 or 24 months of personal or business bank statements. The lender averages your deposits and, for business accounts, applies an expense factor to reflect the cost of running the business. Our guide for self-employed Georgians covers the details.
Asset depletion loans add up your eligible savings and investments, discount some types, set aside what you need to close, and divide the rest by a set number of months. The period used for these loans is 60 months. Nothing is sold. The result is a monthly figure used like any other income. Our asset depletion loan overview explains the calculation step by step.
Side by side
| Bank statement loan | Asset depletion loan | |
|---|---|---|
| What it uses | Deposits over 12 or 24 months | Balances in eligible accounts |
| Best suited to | Self-employed borrowers and business owners with steady cash flow | Retirees, high-net-worth buyers, recent inheritance or business sale |
| What you provide | Bank statements; often proof the business is established | Account statements for cash, brokerage and retirement accounts |
| What drives the number | Average deposits and the expense factor | Asset totals, discounts, and the depletion period |
| Needs ongoing income? | Yes, shown through deposits | No |
Credit, down payment and reserve requirements vary by program for both. For asset depletion, minimum credit scores commonly start around 620, with better pricing and higher loan-to-value limits at 680 to 720 and above. Many programs allow up to 80% loan-to-value on primary residences, and lenders usually look for three months or more of reserves after closing.
Three Georgia scenarios
These are illustrations to show how the choice works, not real clients or loan offers.
The Alpharetta consultant. She has run her own firm for years and deposits about the same amount every month, but deductions lower her taxable income. Her savings are modest. A bank statement loan likely fits, because her strength is cash flow.
The Peachtree City retiree. He left his corporate job, receives a pension, and holds most of his wealth in a brokerage account and an IRA. There is no business and no regular deposits beyond the pension. An asset depletion loan likely fits, possibly alongside the pension income, since asset income can supplement other documented income.
The Savannah business seller. She recently sold her company. Her last two years of deposits reflect a business she no longer owns, but the sale left her with significant cash. Asset depletion is often the better lens here, because the deposit history no longer reflects her situation.
What about DSCR loans?
If you are buying a rental property rather than a home to live in, a Georgia DSCR loan may fit better than either. It qualifies the property on its rent against its payment, rather than qualifying you. Our DSCR requirements guide explains how it works.
Questions that point you to the right loan
- Is your strength what you earn or what you have? Steady deposits point to bank statements. Large balances point to asset depletion.
- Will your income continue? If you have stopped working or sold your business, deposits may not reflect your future.
- Where is your money held? Cash and brokerage accounts typically count more fully than retirement accounts. Retirement accounts are commonly counted at 70%, or sometimes 80% if you are over age 59 and a half.
- Could a conventional loan work? If your income documents easily, a conventional loan may cost less. It is always worth checking.
Some borrowers fit both. In that case we can run the numbers each way and show you which qualifies you more comfortably.
Georgia closing costs apply either way
Whichever loan you choose, Georgia’s intangible recording tax of $1.50 per $500 of the loan amount applies, and a Georgia attorney controls the closing. See our Georgia closing costs guide to budget for the full picture.
Compare your options with a Georgia loan officer
You do not have to pick on your own. Tell us about your income and assets, and we will compare a Georgia bank statement loan and a Georgia asset depletion loan for your purchase, side by side.
Equal Housing Lender
All loans are subject to credit approval. Rates, terms, and program availability are subject to change without notice. This information is for educational purposes only and does not constitute a commitment to lend. Additional restrictions may apply.