Asset Utilization Loans
Let your assets do the qualifying.
An asset utilization loan, also called asset depletion, turns your savings and investments into qualifying income. It is built for retirees, investors and anyone with substantial assets but little income on paper.
- Qualify on assets instead of a paycheck
- No need to sell or pledge your investments to qualify
- Purchase, refinance or cash out
No credit pull and no obligation. Prefer to talk? Call or text (949) 910-3943.
At a glance
- Qualifies on
- Liquid assets, not employment income
- Down payment
- Typically 20% or more
- Eligible assets
- Bank, brokerage and retirement accounts
- Property use
- Primary, second home and some investment
Why asset utilization
When your wealth is not in a paycheck
Standard loans are built around W-2s and tax returns. If you live on savings and investments, those documents can understate what you can afford.
No job required
Many programs need no employment or tax return income. Your assets do the qualifying.
Keep your money invested
The lender calculates income from your balances. You do not have to sell or pledge your accounts to qualify.
Retirement accounts count
IRAs and 401(k)s can usually be included, often at a percentage of their value.
Add it to other income
Some programs combine asset-based income with Social Security, pension or other income.
Higher loan amounts
Loan sizes go well above standard conforming limits for higher-priced homes.
Purchase or refinance
Use it to buy, lower your rate or take cash out of a home you already own.
Compare
Asset utilization vs. a conventional loan
How the two compare for a borrower with strong assets.
| Asset utilization loan | Conventional loan | |
|---|---|---|
| Qualifies on | Your liquid assets | Your income and debts |
| Documents | Account statements | Tax returns, W-2s and pay stubs |
| Best for | Retirees, investors and high-net-worth buyers | Borrowers with steady documented income |
| Down payment | Typically 20% or more | As little as 3% |
| Interest rate | Usually higher | Usually lower |
If your documented income supports a conventional loan, it usually costs less. I will check both.
Want to see the payment on a home you are considering?
The math
How asset income is calculated
The lender adds up your eligible assets, subtracts what you need for the down payment and closing costs, then divides the rest by a set number of months. The result counts as your monthly income. The number of months varies by lender and program.
| Example | Amount |
|---|---|
| Eligible assets after down payment and closing costs | $2,000,000 |
| Divided by the lender’s number of months | 84 |
| Qualifying monthly income | About $23,810 |
This is an example only. Stocks and retirement accounts are often counted at less than full value, depending on the account type and your age.
Qualifying
Do you qualify?
Typical requirements
- Enough liquid assets in your name to support the payment under the lender’s formula
- Assets you have held for a period of time, shown on recent statements
- Down payment typically 20% or more
- Credit score usually 680 or higher
- Cash reserves left over after closing
What you will need
- Recent statements for every account you want to use
- Terms of withdrawal for retirement accounts
- Trust documents if assets are held in a trust
- Award letters for any Social Security or pension income
- A government-issued photo ID
The process
From first call to closing
Tell me about your assets
The types of accounts you hold, approximate balances and the home you have in mind.
Numbers and pre-approval
I run the asset calculation with several lenders and issue a pre-approval.
Go under contract
Make your offer. I order the appraisal and collect your statements.
Underwriting to closing
With no employment to verify, the file is simpler. I keep you updated at every step.
Common questions
Asset utilization questions, answered
Do I have to sell my investments?
No. The lender uses your balances to calculate income. You only need to move the funds for your down payment and closing costs.
Do I need a job or tax returns?
Not with many programs. If you do have other income, it can sometimes be added to help you qualify for more.
Which assets count?
Checking, savings and money market accounts, stocks, bonds and mutual funds, and retirement accounts. Each lender sets how much of each type it will count.
Do real estate equity or business assets count?
Usually not. Lenders look for liquid assets you can access. Some will consider business accounts with additional documentation.
How is this different from a bank statement loan?
A bank statement loan uses deposits to document self-employed income. An asset utilization loan uses the balances you already have, with no income required.
Can I use it for a second home or a rental?
Often, yes. Many lenders allow second homes, and some allow investment properties.
Strong assets, little income on paper?
Tell me roughly what you hold and what you want to buy or refinance, and I will show you what you qualify for and what the payment looks like.
Asset utilization loans are offered by select lenders. Eligible assets, the income calculation, down payment and property types vary by lender. This is general information, not a loan offer, rate quote or commitment to lend, and it is not financial, investment or tax advice. Program terms, fees and eligibility can change and depend on your credit, assets, property and lender guidelines. Mack Davidson, NMLS #1006831, CA DRE #02086053, E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.