A Mortgage Strategy Built Around Assets

Many Colorado homebuyers have strong savings and retirement accounts but modest income on paper. Traditional lenders struggle with that combination, even when the buyer's long term affordability is clear.

Asset utilization mortgages solve this by qualifying you on verified liquid assets instead of a paycheck. Some call it an asset-based or asset depletion loan. Either way, it's built for people whose wealth already exists, just not in the form of a W-2.

Who this loan works best for:

Early Retirees

Left full time work but still hold strong retirement and investment accounts

Business Owners

Sold a company and now qualify on the proceeds rather than a salary

Investors

Wealth is held in accounts rather than earned monthly income

Foreign Nationals

Hold U.S. based assets without traditional U.S. income documentation

These buyers aren't being stretched financially to afford a home. They're financing it in a way that matches how their money actually works.

Qualification Guidelines

Woman calculating her portfolio balance

No pay stubs. No tax returns to prove personal income. Just your assets, credit scores, and housing history.

The Basics

  • • Assets: Lesser of $750K or 125% of loan size after-closing
  • • Credit score: 660 minimum, 680+ preferred
  • • Down payment: 15-30% depending on loan size & credit
  • • Reserves: Typically 6 to 9 months
  • • Property types: Detached homes, rowhomes, condos, dujplex

Requirements current as of Sept. 28, 2026.

See if your assets qualify you today.

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How Asset Utilization Qualification Is Calculated

Lenders calculate your qualifying income one of two ways. Divide your total eligible assets by 60 or 84 months. Or simply hold 125 percent of the loan amount in your accounts before and after closing.

The process follows a set formula, not a subjective review. Lenders verify your assets, apply a depletion schedule, and land on a monthly figure that stands in for income.

Retirement accounts work a bit differently. If you're under age 59 and a half, a 30-percent early withdrawal subtraction applies to that balance first.

Example: Common Asset Types

Assets Reviewed

Brokerage account: $420,000
Retirement account: $828,571
(borrower age: under 59 and a half)

Total Eligible Assets

$420,000 + $580,000 ($828,571 × .70)

$1,000,000 total after adjustments

Depletion Schedule

Assets divided over 84 months

Monthly Qualifying Amount

$11,904 used for approval

This figure sets your affordability, your debt to income ratio, and your maximum loan size.

Try our tool to estimate monthly income from assets .

When Income and Assets Are Used Together

Some borrowers still earn modest income while holding substantial assets. Lenders can combine both.

Only a small share of the asset derived amount gets added on top. Most programs cap it between 10 and 15 percent. This keeps qualification honest while still crediting both sources.

Asset Utilization Loans Compared to Other Mortgage Options

People often compare asset based loans to income driven programs. The approval logic is not the same. Asset utilization qualifies you on account strength, not earnings or rental income.

Comparison Overview

Loan Type Qualification Method Typical Rates Loan Period Best For
Bank Statement Deposit history Higher than jumbo 30 Yr Fixed, 5 to 7 Yr ARM Self-employed, strong cash flow
DSCR Property rental income Similar to bank statement proram 30 Yr Fixed, 40 Yr I.O. Real estate investors
Asset Utilization Assets converted to monthly income Similar to bank statement proram 30 Yr Fixed, 5 to 7 Yr ARM Strong assets, strong credit, limited income
Conventional Tax returns, W-2, debt ratios Lowest available 15, 20, or 30 Yr Fixed W-2 earners, stable income
Jumbo Tax returns, W-2, strong credit Slightly above conventional 15 or 30 Yr Fixed, 5 to 7 Yr ARM High loan amounts, high income and credit

Rates and fees vary by credit profile, assets, and loan size.

Specific Scenarios Where This Loan Helps

  1. Early retirees use asset utilization loans to qualify without touching retirement funds early.
  2. Entrepreneurs use proceeds from a company sale in place of prior business income.
  3. Foreign nationals with U.S. assets may qualify without foreign income documentation.
  4. Professionals in a career transition or sabbatical use assets to maintain purchasing power.

A Clear Path Forward

Qualify based on your verified savings and investments. Let your assets do the work.

Colorado buyers use this non-QM loan for primary residences and second homes without disrupting their long term investment plans.

An alternative to the asset based loan is the No Ratio loan.

Speed up the Process

This loan runs on documentation. Get your financial records organized early and underwriting moves faster.

  • ● Gather 3 to 6 months of statements for every liquid asset you'll use, including retirement, brokerage, money market, CDs, and trust disbursements. PDF format is preferred.
  • ● Keep records of one time payouts like lawsuit settlements or inheritance that may count toward your total.
  • ● Expect lenders to discount volatile assets. A 30 percent discount is common on IRAs and 401(k)s for borrowers under 59 and a half. The more stable and liquid your assets, the better.

 

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Still have questions? Check these answers

Can I qualify for a mortgage without income from a job?+
Yes. Not all potential homeowners choose to fund their home loans in the same way. Sometimes, their income can come from non-traditional sources, such as being self-employed or retired. In some cases, the majority of a person’s actual savings can be in the assets they own rather than in their job income. If lenders looked at job income alone, these people would not qualify for a home loan, but the value of their assets could be plenty to assure the lender that they are not a risk. These are some of the reasons why the asset utilization program was created.
Do I need to cash in, sell, liquidate or retitle my assets?+
No. The assets are only used to justify that you have the ability to repay the loan. Lenders consider liquid assets as collateral, much the same way as W2s and pay stubs are reviewed for a traditional Conventional or Government loan.
What type of liquid assets are allowed to qualify?+
There are specific asset types that will help you qualify for an asset utilization loan. These include their checking, savings accounts, money market accounts, CD (certificate of deposit), retirement accounts such as a 401(k), an IRA, as well as investment accounts such as mutual funds, stocks, and bonds may also qualify
Can I take cash out with an asset utilization mortgage?+
Yes, cash-out refinancing to access home equity is permitted based on your liquid assets and property value. This allows further liquidity.
Can I combine the Asset utilization program's income with my job's income?+
Yes. This is allowed on non-conforming 30-year fixed loans. Keep in mind whem combining it this way lenders usually cap the "asset program's monthly income" to 25% above your current income. Furthermonre, it cannot be combined with a conventional, FHA or VA loan. It will only be allowed in conjunction with non-QM traditional loan to confirm the ATR requirements.

Areas Served

We serve borrowers throughout the state of Colorado which includes these cities:

Disclosure: Minimum loan amount is $150,000 for residential. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.