Asset Utilization Home Loans
Retired, sold a business, or sitting on savings and investments that don't show up as a paycheck? An asset utilization loan counts those assets as your income. No pay stubs, no W-2s, no tax returns, and no need to sell a single share.
What is an asset utilization home loan?
An asset utilization loan, also called an asset depletion or asset-based mortgage, lets you qualify with the money you've already saved instead of the job you have today. It's one program under the broader Non-QM loans umbrella.
Here's how the math works. We take your eligible assets, subtract the funds going toward your down payment and closing costs, and divide what's left, over a set number of months, commonly 60 to 84. The result counts as your monthly income.
For example, $600,000 in eligible assets divided by 60 months gives you $10,000 a month in qualifying income. Your money stays right where it is, and we simply measure it to confirm you can afford the loan.
One thing worth knowing up front: that calculated income still goes through a debt-to-income check, the same way a paycheck would. You skip the pay stubs and tax returns, but your monthly debts still count.
Why do people choose an asset utilization loan?
• No employment income required. Your savings and investments do the qualifying for you.
• Your assets stay invested. You don't have to sell or liquidate anything to prove you can afford the loan.
• Works when taxable income looks low. Business owners who write off heavily often show less income on paper than they really have. Your assets tell the true story.
• No pay stubs, W-2s, or tax returns. A much shorter income document list than a standard file.
• Flexible terms. Purchase and refinance options are available, and asset income can often be combined with other income you DO have.
What you need to qualify for an asset utilization loan in Ohio
• A credit score of roughly 620 to 700, depending on the program, with better pricing at higher scores
• A down payment of 20% or more, which keeps most loans at 80% loan-to-value or below
• Eligible assets large enough that, after your down payment and closing costs come out, the remainder covers your monthly payment and debts when spread over the divisor
• Accounts that have been in place for at least a couple of months, since lenders typically want to see 60 to 90 days of history
• Cash reserves left after closing, with the amount depending on your loan-to-value and the program
• A primary residence or second home
These are guidelines, not a wall. A quick pre-approval will tell you where you really stand. Get pre-approved to the right via the button.
How Your Assets Count
Not every dollar counts at full value. Lenders discount assets that can lose value or that carry penalties for early withdrawal. Typical treatment looks like this, below. Exact percentages vary by program. We'll run your numbers and show you the real figure before you commit to anything.
| Asset type | Typically counts at | What to know |
|---|---|---|
| Checking, savings, money market, CDs | 100% | The simplest assets to document and count |
| Stocks, bonds, mutual funds | 70% to 80% | Discounted because market values move |
| IRAs and 401(k)s | 60% to 70% | Often counted at a higher percentage once you're 59½ or older |
| Real estate equity, private or restricted stock | Usually not counted | A cash-out refinance can turn home equity into cash that does count |
Who Is The Asset Utilization Loan Program Designed to Serve?
Retirees living off a portfolio instead of a paycheck. Business owners who recently sold or retired and have the proceeds in the bank. Self-employed buyers whose write-offs shrink their taxable income. High-net-worth buyers whose wealth doesn't arrive as a W-2.
If you're buying a rental or investment property, a DSCR home loan qualifies on the property's rent and is usually the better fit. If you're self-employed with steady deposits, a bank statement home loan may get you there with less cash tied up. And if you have income you can document, a conventional home loan will usually carry the lowest rate. We'll compare them all with you.
Our no income, no employment home loan is also a related asset-based program. We'll walk through both and tell you which one fits your numbers the best for you
Why work with Mane Capital Mortgage?
We carry the weight of the mortgage process so you don't have to do it.
An asset-based file asks for more statements and more explanation than most loan programs. That's where a lender either makes it manageable or makes it miserable. Our job is to keep it organized, tell you exactly what we need, and keep you updated at every step.
One client said our loan officer “made what could have been a stressful process feel smooth, organized, and manageable.” Another told us, “He kept us updated and stress-free throughout the process.” That's the experience we aim for on every file, and a file like this one is where it matters most!
With Mane, you'll work with an independent lender who picks up the phone and knows your file by name. Meet our team here.
Mane won’t give up on you!
If you've been denied or turned down by another lender for your home loan, don't give up. Mane Capital Mortgage specializes in finding a way forward towards home ownership. That's why we offer and serve so many different loan types, for the many different scenarios our clients find themselves within. We're here for you!
Frequently Asked Questions on Asset Utilization Home Loans
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No. We calculate income from the value of your eligible assets, but they stay in your accounts. You will use some of your cash for the down payment and closing costs, and those funds come out of the calculation first.
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Yes! Lenders use both names, along with “asset-based mortgage,” for the same idea: turning your savings and investments into qualifying monthly income.
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Yes. The income we calculate from your assets is compared against your monthly debts and your new housing payment, just like income from a job. You skip the pay stubs and tax returns. The affordability check still applies.
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Cash, savings, money market accounts, CDs, stocks, bonds, and retirement accounts all can count. Cash counts at full value. Investments and retirement accounts count at a discount. Home equity and private stock generally don't count.
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Plan on 20% or more down. Most programs look for a credit score between 620 and 700, and higher scores earn better pricing. Rates run higher than on a conventional loan because it's a non-QM product.
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Usually a DSCR loan fits a rental better, since it qualifies on the property's rent instead of your assets. Ask us and we'll tell you which one works out cheaper for your situation.
Ready to start? Talk to a home mortgage expert today. We'll add up your eligible assets, show you the income they produce together, and tell you plainly whether this program fits your needs.
Get personalized guidance for your mortgage needs.
Schedule a call with one of our mortgage experts to discuss your options, with zero pressure to move forward afterward.