Leverage Your Financial Portfolio for Mortgage Qualification: Mortgage Solutions Based on Your Assets, Not Just Your Income.
An Asset Depletion Mortgage Loan uses your existing liquid assets, such as savings accounts, brokerage accounts, retirement accounts, and other investments, as income to qualify for a mortgage. Instead of relying on employment income, the lender calculates potential monthly income by dividing your eligible assets over a set period. This mortgage is perfect if your wealth lies primarily in savings and investments, offering a streamlined qualification process without the hassle of traditional income verification.
Asset-based mortgages offer several advantages, particularly for individuals who might not qualify for traditional income-based loans.
Flexible Income Qualification
Traditional mortgages rely heavily on W-2 income, tax returns, and consistent employment history. Asset depletion loans take a fundamentally different approach. Rather than focusing solely on your monthly income, these innovative financing solutions recognize the value of your accumulated wealth.
Your investment portfolios, retirement accounts, and liquid assets represent significant financial stability—even if they don’t generate traditional income streams. Asset-based lending acknowledges this reality by converting your wealth into a theoretical income figure for qualification purposes.
Perfect for High Net Worth Individuals
If you have accumulated substantial assets throughout your career but find yourself in a life stage or profession where traditional income documentation is challenging, asset depletion loans could be your ideal solution. These programs are particularly valuable for:
You've spent decades building your nest egg, but your current income may not reflect your true financial position. Asset loans allow you to tap into that wealth for mortgage qualification without liquidating your investments.
As a business owner or entrepreneur, your income may fluctuate significantly or be strategically minimized for tax purposes. Asset utilization lending looks beyond tax returns to recognize your true financial capacity.
Your complex financial picture might include various investment vehicles, trust assets, or wealth management strategies that don't translate neatly into traditional income documentation.
If you've recently sold a business, received an inheritance, or experienced another significant liquidity event, asset depletion loans can help you leverage that wealth immediately.
Access to Competitive Loan Terms
Contrary to what you might expect, asset depletion loans often feature highly competitive terms and interest rates. Lenders recognize that borrowers with substantial assets typically represent lower risk profiles, even without traditional income verification.
You’ll gain access to various loan products, including:
Portfolio Preservation
One of the most significant advantages of asset depletion financing is that you don’t need to liquidate your investments. This preservation strategy allows your assets to continue working for you in the market while simultaneously helping you qualify for mortgage financing.
By avoiding premature liquidation of investments, you can:
Asset-based mortgage qualification follows a straightforward calculation process that converts your wealth into a theoretical monthly income figure. Here’s how it works:
First, we assess your qualifying financial assets. While specific requirements vary by program, typical qualifying assets include:
The asset evaluation process centers around determining your capacity to repay the mortgage based on your readily available assets, rather than traditional income verification.
Next, we apply a formula to determine your theoretical monthly income:
For example, if you have $1,000,000 in qualifying assets: $1,000,000 ÷ 360 months = $2,777 monthly income equivalent
This calculated income can be used alone or combined with your actual income sources to determine your debt-to-income ratio and loan eligibility.
Your calculated asset income is then used to determine your ability to repay the mortgage through standard debt-to-income ratio analysis. Depending on the loan program, lenders typically look for a DTI ratio below 43%, though some portfolio programs offer flexibility up to 50%.
Once qualified, you receive approval based on your assets rather than traditional income verification. The loan proceeds through standard closing processes, with your assets serving as the qualifying factor rather than employment income.
Tailored Solutions for Your Financial Profile
We offer a comprehensive suite of asset-based mortgage options designed to meet diverse needs:
Our core asset utilization program provides financing for primary residences, second homes, and investment properties using a straightforward asset depletion calculation. Features include:
This program works well for borrowers with diverse asset portfolios seeking straightforward qualification.
For luxury properties and high-value real estate, our jumbo asset program offers enhanced flexibility:
This program caters to sophisticated investors and high-net-worth individuals seeking premium property financing.
Designed specifically for building your real estate portfolio, this program offers:
This program helps investors leverage existing assets to expand their real estate holdings.
For those with both traditional income and significant assets, our portfolio blend program offers maximum flexibility:
This hybrid approach often yields the most favorable terms for borrowers with complex financial profiles.
When considering an asset-based mortgage, it’s valuable to understand how it compares to alternative approaches:
Traditional mortgages rely primarily on employment income, debt ratios, and credit scores, with assets playing a secondary role as reserves. Asset depletion loans invert this approach, making your accumulated wealth the primary qualification factor.
Traditional financing works well for W-2 employees with stable income histories, but can present challenges for retirees, business owners, or those with non-traditional financial profiles.
While both offer alternatives to traditional income verification, stated income loans (largely unavailable since the 2008 financial crisis) allowed borrowers to state their income without verification. Asset depletion loans, by contrast, rely on verified assets to calculate a theoretical income.
Both leverage assets, but in fundamentally different ways. Reverse mortgages allow homeowners 62+ to convert home equity into income without monthly payments, eventually repaying through the sale of the home.
Asset depletion loans, by contrast, use your financial assets to qualify for a traditional mortgage that you repay monthly. They’re available to borrowers of all ages and for various property types, making them more versatile than reverse mortgages.
Asset depletion calculations typically involve dividing your total qualifying assets by a set term (usually 360 months or 30 years) to create a monthly income equivalent. For example, $1,000,000 in qualifying assets would generate approximately $2,777 in monthly income equivalent ($1,000,000 ÷ 360 = $2,777). Some programs apply discount factors to certain asset types or use alternative calculation methods.
Minimum asset requirements vary by program, but typically start around $500,000 to $1,000,000 in qualifying assets. Jumbo programs or those financing luxury properties may require significantly higher asset levels. The required asset amount ultimately depends on your desired loan amount, as your assets must generate sufficient theoretical income to support your debt obligations.
Most asset depletion programs require minimum credit scores of 680-700, with more favorable terms available at 740+ scores. While asset-based lending places greater emphasis on your wealth than traditional programs, credit history remains an important factor in determining eligibility and interest rates. Some portfolio programs may offer flexibility for extraordinary asset situations.
Asset depletion loans are available for primary residences, second homes, and investment properties, though terms and qualification requirements may vary by property type. Condominiums must typically be in approved projects. Some programs limit commercial or mixed-use properties. Non-warrantable condos, co-ops, or unique properties may require specialized portfolio programs.
You’ll typically need to provide 2-3 months of recent statements for all assets being used for qualification, proof of ownership, and possibly a longer history for assets with significant fluctuations. Additional documentation may include trust agreements, retirement account details, investment portfolio summaries, and explanation letters for any large deposits or withdrawals.
At The Texas Mortgage Pros, we specialize in asset-based mortgage solutions that look beyond conventional income verification. Our asset utilization loan programs allow you to leverage your investment portfolio, retirement accounts, and other financial assets to qualify for the home you truly deserve.
Our specialized mortgage advisors understand the unique needs of high-net-worth borrowers and those with sophisticated financial profiles. Call us at (877) 280-4833 to speak with one of our asset loan experts to discuss your specific situation.
The Texas Mortgage Pros, LLC. is not affiliated with an agency of the federal government, HUD or FHA. THIS IS NOT A GOVERNMENT DOCUMENT. HUD or FHA did not distribute or approve this material.
The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.
