Why asset-rich borrowers pick this program
- No employment income required — assets alone can qualify the loan
- Eligible assets, less closing funds and required reserves, divided by 84 months produces qualifying income
- Retirement accounts (401(k), IRA, brokerage) count as eligible assets
- Can be your sole income source — or supplement another income path
- Up to 80% LTV on primary residence at the top FICO/loan tier
- Primary residence, second home, and investment property all eligible
How qualifying income is calculated
The formula is intentionally simple. There is no debate, no projection, no forecasting model — eligible assets after down payment, closing costs and required reserves divided by 84 is qualifying income purposes.
- Step 1
Verify eligible assets
We document the liquid and semi-liquid assets you intend to use — brokerage accounts, retirement accounts, and other eligible holdings. Statements from your custodians establish the asset base.
- Step 2
Divide the asset base by 84
Apply the eligible asset percentages, then subtract the down payment, out-of-pocket closing costs and required reserves. Divide the remaining eligible amount by 84 months (7 years) to determine monthly qualifying income.
- Step 3
Use it solo — or stack it with other income
Asset utilization can be your only qualifying income source, or it can supplement W-2, 1099, P&L, or bank statement income. When stacking, the minimum asset requirement is waived.
Credit, housing, and seasoning requirements
Asset Utilization sits in the Prime Time alt-doc column, which carries tighter housing and credit-event overlays than the Standard / Bank Statement / 1099 column.
- Maximum housing history: 1x30x12 (one 30-day late in the last 12 months)
- Minimum credit-event seasoning: 36 months since any bankruptcy, foreclosure, short sale, or deed-in-lieu
- Decision credit score: the lowest score across all borrowers is used; program not available below 680 FICO
Asset utilization mortgage — FAQs
What is an asset utilization mortgage?
An asset utilization mortgage qualifies you on your assets instead of (or in addition to) your earned income. Total Quality Lending subtracts down payment, out-of-pocket closing costs and required reserves from eligible assets, then divides the remainder by 84 months to produce a monthly income stream the loan can be underwritten against — up to 80% LTV at the best FICO/loan tier.
What assets count toward asset utilization?
Eligible checking, savings, money-market accounts and qualifying short-term U.S. Treasuries count at 100%. Eligible stocks, bonds and mutual funds count at 70%. Retirement assets count at 70% at age 59½ or older and 60% below that age. Accounts require the applicable documentation and 90-day seasoning; then subtract closing funds and required reserves before dividing by 84.
Do my retirement accounts qualify even if I'm not at retirement age?
Eligible retirement assets count at 70% when the borrower is at least 59½, or 60% below retirement age. The applicable account eligibility and access requirements still apply. The remaining eligible assets after down payment, out-of-pocket closing costs and reserves are divided by 84.
Can I use a brokerage account or RSU/equity holdings?
Eligible stocks, bonds and mutual funds count at 70%. Privately traded or restricted/non-vested stock is ineligible for asset depletion. Assets producing income already included in qualification cannot be counted again.
What about real estate equity — does that count?
Real estate equity itself does not feed the asset utilization formula. The formula is built around liquid and semi-liquid financial assets. If you want to use real estate equity to fund a purchase, a cash-out refinance on an existing property is the typical path, and the proceeds then become liquid assets.
What credit and housing-history requirements apply?
Asset Utilization sits in the Prime Time alt-doc column. Maximum housing history of 1x30x12 and a minimum 36 months of credit-event seasoning apply. The lowest credit score across all borrowers is used as the decision credit score, and the program is not available below 680 FICO.
Asset depletion vs bank statement loan — which one fits me?
They fit different profiles. A bank statement loan qualifies you on business cash flow — 12 or 24 months of real deposits — and suits actively self-employed borrowers with steady revenue. Asset utilization (also called asset depletion) qualifies you on what you've already accumulated — eligible assets net of closing funds and reserves divided by 84 months — and suits retirees, recent business sellers, and investors with large portfolios but modest current income. The two can also be combined: asset utilization income can stack on top of bank statement, W-2, 1099, or P&L income on the same application.
Related alt-doc programs
Your assets are the income story — let’s qualify the loan
A 5-minute conversation with a TQL Loan Officer is enough to confirm your asset base qualifies the property you have in mind.
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