Income on paper doesn’t always tell the whole story. Many high-net-worth borrowers have substantial liquid assets but don’t bring in a traditional income, leaving them outside the conventional mortgage qualification mold.
Thankfully, other loan options, like asset utilization loans, can provide borrowers like these with a path to homeownership. Instead of traditional documents, like pay stubs or W-2s, your asset portfolio provides a clear indication of your financial capabilities. Whether you’re self-employed, retired, or living off investments, an asset utilization loan can help you use your wealth and capital as borrowing power.
This article will go into more detail about what asset utilization loans are, how they work, and whether they’re a suitable option for you.
An asset utilization loan is a type of financing that allows borrowers to use their liquid assets to qualify for a mortgage, instead of relying solely on traditional employment income. The assets serve as collateral for the loan.
Rather than using W-2s, pay stubs, or tax returns, lenders assess a borrower’s liquid asset base to determine mortgage qualification.
Lenders evaluate a borrower’s entire asset portfolio — including stocks, cash reserves, and retirement accounts — to establish their repayment ability instead of focusing on traditional employment verification or pay stubs. Here’s how asset utilization loan eligibility works:
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Get StartedAsset utilization mortgages are ideal for the following types of borrowers:
While loan criteria may vary by lender, most asset utilization mortgage requirements include the following:
Typically 620+.
Minimum 15%–25%.
2–3 months’ worth of statements.
Typically capped at 50%.
Only certain assets can be used in the calculation of a borrower’s qualifying income:
Eligible Assets
Ineligible Assets
Note: Retirement accounts may require adjustments based on the account holder's age.
Borrowers whose wealth lies in their assets instead of steady paychecks may find asset utilization loans beneficial for the following reasons:
While asset utilization loans offer flexibility for asset-rich home buyers, they also come with potential downsides:
Asset utilization loans may sometimes be confused with profit & loss (P&L)-only loans. While both may be used for self-employed or high-net worth individuals who lack traditional income, there are key distinctions between them:
Asset Utilization Loans
P&L-Only Loans
Retirees, investors, or high-net-worth borrowers with minimal or irregular income
Self-employed borrowers with substantial income that’s not fully reflected on tax returns
Detailed asset portfolio
Profit & loss statement
Based on total assets and loan amount
Based on net income from P&L statement
At least 15%–25%
At least 10%
No, these loans are based on asset value, so there’s no need to sell.
Yes. Many lenders allow asset utilization loans for non-owner-occupied properties.
An asset utilization loan allows high-net-worth borrowers to leverage their assets as collateral for a loan. On the other hand, an asset depletion loan allows borrowers to qualify for financing based on the estimated value and depletion rate of their assets, instead of relying exclusively on income.
Find a mortgage lender, like Sammamish Mortgage, that’s experienced with these specialized asset-based loans. Sammamish Mortgage offers flexible qualification solutions for high-net-worth buyers across the Pacific Northwest.
Our loan officers are ready and waiting to help you apply for your home loan.
If you have substantial liquid assets but lack traditional income verification, an asset utilization loan may be what you need to achieve homeownership. Whether you’re retired, self-employed, or asset-rich with irregular income, this financing option allows you to leverage your assets to help you qualify for the loan you need without disrupting your portfolio or long-term investment plans.
Are you a high-net-worth individual looking to purchase a home in the Pacific Northwest region but don’t have the traditional income to qualify for a traditional loan? If so, we can help. At Sammamish Mortgage, we offer various self-employed mortgage home loan programs for those without traditional employment documentation in WA, OR, ID, CO, and CA. Visit our website to get an instant rate quote, or get in touch with us today to have your mortgage questions answered!
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