Some borrowers have built significant wealth through savings, investments, or retirement accounts. Their assets are substantial, but their monthly income on paper may be limited. If that sounds like your situation, an asset utilization loan may be the answer.
An asset utilization loan, sometimes called an asset depletion mortgage, converts your liquid or semi-liquid assets into a calculated monthly income. That figure is then used to determine how much you qualify to borrow. You do not need to draw down or liquidate your assets. The lender simply uses a formula to estimate what those assets could provide over time.
At Lender Express, we work with lenders who understand how to evaluate wealth and make qualification fair for borrowers whose financial picture goes beyond a monthly paycheck.
WHAT IS AN ASSET UTILIZATION LOAN?
An asset utilization loan is a Non-QM mortgage program that allows borrowers to use their existing assets to qualify instead of relying on traditional income documentation. The lender calculates a hypothetical monthly income based on the total value of eligible assets divided over a set period, typically the remaining loan term.
For example, if you have $1.5 million in eligible assets and are applying for a 30-year mortgage, the lender might divide that figure by 360 months to arrive at a qualifying monthly income of approximately $4,166. That number is then used alongside your credit profile to determine your loan eligibility.
This program is particularly well-suited for retirees, high-net-worth individuals, and borrowers who have stepped back from traditional employment but have accumulated meaningful assets.
KEY BENEFITS
- Qualify using savings, investment accounts, or retirement funds
- No traditional income documentation required
- You do not need to liquidate your assets to qualify
- Available for purchase and refinance
- Works for retirees, high-net-worth individuals, and early retirees
- Eligible assets can include checking, savings, brokerage, and retirement accounts
- Loan amounts available up to jumbo levels
HOW IT WORKS
Here is how an asset utilization loan works.
- Document your assets — Provide statements for eligible accounts: checking, savings, investments, and retirement accounts.
- Lender calculates qualifying income — Your total eligible assets are divided by the remaining loan term in months to produce a monthly income figure.
- Credit and down payment review — Your credit score and available down payment are evaluated alongside the asset calculation.
- Pre-approval issued — Based on calculated income, credit, and assets, you receive your pre-approval.
- Underwriting and close — The lender completes the file and you close on the property.
Run different scenarios using our mortgage calculator to understand how loan amount and term affect your monthly payment.
WHO THIS LOAN IS BEST FOR
- Retirees with significant savings or investment portfolios
- High-net-worth borrowers with limited monthly W-2 or self-employment income
- Early retirees who have left traditional employment
- Borrowers who receive income from investments but have limited documented monthly income
- Borrowers with substantial retirement accounts who do not yet draw distributions
- Borrowers with strong credit and at least 20% to put toward a down payment
BASIC REQUIREMENTS
These are general guidelines. Requirements vary by lender and borrower profile.
| Eligible Assets | Checking, savings, brokerage, IRA, 401(k), other retirement accounts |
| Asset Documentation | 2 to 3 months of account statements required |
| Minimum Credit Score | Typically 680 or higher for most programs |
| Down Payment | Generally 20% or more depending on loan amount and credit |
| Reserves | Assets used for reserves in addition to the qualifying calculation |
| Loan Amounts | Up to jumbo levels depending on lender |
| Property Types | Primary residence, second home, investment property |