Asset-rich borrowers
Asset Based
Qualify using your assets - savings, investments, retirement accounts - instead of traditional income.
An asset-based loan, sometimes called asset depletion or asset qualifier, lets you qualify for a mortgage using what you’ve saved instead of what you earn each month. Your savings, investments and retirement accounts are used to show you can comfortably make the payments. You don’t need to sell any of them to qualify.
Who it’s a good fit for
- Retirees with substantial savings but modest monthly income
- Recently retired buyers who don’t yet have a pension or Social Security history
- Investors and business owners whose income varies from year to year
- Buyers who have sold a business or received an inheritance
How it works
The lender reviews your eligible assets, such as checking, savings, brokerage and retirement accounts. It then turns a portion of them into a monthly qualifying income, generally by spreading the balance over a set number of months. Retirement and investment accounts may be counted at a reduced percentage. You can often combine this with any other income you have, like Social Security or a pension.
What lenders usually look for
- Account statements showing the assets have been in place for a period of time
- A down payment, often larger than a conventional loan’s
- Reserves left over after closing
- A solid credit history
Things to weigh
Asset-based loans are specialty programs, so pricing differs from a standard conventional loan. Some conventional programs also allow asset-based qualifying, which may cost less if you fit their guidelines. We’ll check both.
Common questions
Do I have to spend down my accounts?
No. The assets are used to show ability to repay. They stay yours and stay invested.
Can I use it for a second home or investment property?
Often, yes, depending on the program.
Can I combine assets with other income?
Usually. Pension, Social Security or part-time income can be added to the asset-based income.
Wealth in savings, not paychecks? Call us at 303-931-3239, or get prequalified online.