Asset Utilization Loans

How is my qualifying income calculated?

The lender totals your eligible liquid assets and divides by a set number of months — typically 360 months for a 30-year loan. For example, if you have $1.8 million in eligible assets, your calculated monthly income would be $5,000. This figure is used in place of employment income to determine how much you can borrow.

What types of assets qualify?

Eligible assets include checking and savings accounts (counted at 100%), stocks and bonds in non-retirement brokerage accounts (counted at 100% or discounted for volatility), retirement accounts like 401(k) and IRA (typically counted at 60-70% of value to account for taxes and penalties), and some other liquid assets. Real estate equity, business interests, and non-liquid assets generally do not qualify.

Do I need to be retired to use this program?

No. While asset utilization loans are popular with retirees, you do not need to be retired. The program is available to anyone with sufficient liquid assets, including early retirees, business owners between ventures, individuals living off investments, or anyone who prefers not to document traditional income. The only requirement is that you have enough qualifying assets.

What credit score is needed?

Most asset utilization programs require a minimum credit score of 680-700. Higher credit scores will qualify for better interest rates. Since these borrowers typically have significant financial resources, lenders expect a strong overall credit profile to complement the asset-based qualification approach.

Can I use retirement accounts that I cannot access yet?

Yes, but they are typically discounted. Retirement accounts like 401(k)s and IRAs are usually counted at 60-70% of their current value to account for taxes and potential early withdrawal penalties. Roth IRAs may receive more favorable treatment since contributions can be withdrawn tax-free. Your loan officer can calculate exactly how your specific accounts will be valued.