Asset Utilization
What is Asset Utilization?
A non-QM income path that converts liquid assets into a qualifying monthly income stream.
Asset Utilization is a non-QM mortgage income path designed for borrowers who have substantial liquid wealth but limited or inconvenient taxable income. The most common cases are retirees living off portfolio drawdowns, business owners who take minimal W-2 from their company, professionals with deferred compensation, and high-net-worth individuals between major liquidity events.
The math is deliberately conservative: by spreading assets across 84 months (seven years), the calculation ensures the borrower has a long runway even if income suddenly stopped. Eligible assets typically include brokerage accounts, retirement accounts (401k, IRA, Roth), and other liquid investment holdings. Real estate equity outside the subject property generally does not count.
The resulting monthly figure is plugged into the standard DTI calculation, where it functions exactly like W-2 wages or self-employment income from a tax return. This gives the borrower a clean qualification path without ever filing a 1040 or W-2.
How Asset Utilization works at Total Quality Lending
Total Quality Lending’s Asset Utilization mortgage lives inside the Prime Time non-QM program. Eligible assets are divided by 84 months. On primary residence with 720 FICO, the matrix goes up to 80% LTV at the ≤$2M loan tier; 700 and 680 FICO tiers carry the same 80% LTV through ≤$2M with stepdowns at higher loan sizes.
The program requires maximum 1x30x12 housing history and at least 36 months of credit-event seasoning (since BK, foreclosure, short sale, etc.). Loans on second homes and investment property are also available under Asset Utilization, with their own LTV matrix. See our dedicated Asset Utilization mortgage page for full scenarios.