Let your assets do the qualifying.

What is the difference between asset depletion and asset qualifier?

Asset depletion adds a calculated income stream from your assets on top of documented income, useful when you have some income but not quite enough. Asset qualifier, sometimes called asset utilization, qualifies you on assets alone, with no income of any kind in the file. Lenders use the terms loosely, so ask which one you are being quoted.

How is income calculated on an asset-based loan?

Eligible assets, after haircuts, minus your down payment, minus closing costs, minus required reserves, divided by a depletion period.

• The divisor is the whole ballgame. Programs use anywhere from 60 months at the aggressive end to 360 months at the conservative end, with 84, 120, and 240 in between. The same $2 million produces about $33,000 a month at 60 months and about $5,500 at 360. If you shop this program, you are really shopping the divisor.
• Haircuts by asset type: cash, checking, savings, money market and CDs at 100%; brokerage (stocks, bonds, mutual funds, ETFs) at about 80%; retirement accounts at about 70% if you are 59½ or older, and about 50% if you are younger.
• What does not count: equity in real estate, equity in your business, most cryptocurrency, vehicles, jewelry, 529 plans, HSAs, and pension benefits that are not yet being distributed.
• The same dollars cannot do two jobs. Reserves and cash-to-close are carved out of the pool before the division happens. A borrower with exactly enough for the down payment usually does not qualify.

Who is an asset-based loan built for?

Retirees with substantial portfolios and modest taxable income. Business owners who just sold and have not replaced the income. Trust beneficiaries. Executives between roles. Anyone whose wealth is real, liquid, and simply not shaped like a paycheck. It is a poor fit if your net worth lives in real estate or in a business you still own, because neither counts.

How much down payment does an asset-based loan require?

• 20% to 25% down. Maximum LTV generally caps at 75% to 80%, lower than most other Non-QM programs.
• 6 to 12 months of PITIA in reserves, scaled to loan size and credit profile, and set aside before the income math runs.
• Assets generally need 60 days of seasoning, and any recent large transfer between accounts has to be sourced.

What documents does an asset-based loan require?

• Two full months of statements on every account being used: all pages, actual statements, not screenshots or portal printouts.
• Verification of ownership on each account, and a letter of access if an account is held jointly with a non-borrower.
• Retirement account terms and proof of your age, and where required, evidence you can draw without penalty.
• Trust documents if assets are held in trust, showing you control and benefit from them.
• Sourcing for recent large transfers or newly opened accounts.
• Government photo ID, signed application, purchase contract, insurance quote.

What are the advantages of an asset-based loan?

• No income documentation at all on the qualifier version
• You never have to actually liquidate or withdraw anything
• Ideal for retirees and post-exit owners the income box cannot hold
• Can be combined with other income at many lenders
• Supports large loan amounts when the asset base is there

What are the trade-offs of an asset-based loan?

• Requires a genuinely large liquid balance; the math is unforgiving
• Lower maximum LTV and higher reserve requirements than other programs
• Retirement-heavy borrowers under 59½ take a 50% haircut
• Real estate and business equity are worth nothing to this calculation
• Market swings can reduce your qualifying income mid-process

Why do asset-based loans get declined?

• The assets sit in a business or entity account, not in your personal name.
• Balances drop between application and the final verification: a market correction, a car purchase, a transfer to a child.
• Assets are not seasoned, or a large deposit arrived recently and cannot be sourced.
• Retirement funds are not accessible: still employed at the plan sponsor, or subject to restrictions the lender will not discount around.
• Income lands short after reserves and cash-to-close are netted out, which surprises borrowers who did the math on the gross balance.
• Statements are incomplete: missing pages, or screenshots where full statements are required.
• Assets are held in a trust whose documents do not establish your unrestricted access.

What does a typical asset-based loan file look like?

A retired dentist who sold her practice fourteen months ago. Current taxable income is Social Security plus occasional consulting, nowhere near enough for a conventional file. She holds $2.8 million: $1.9 million in a brokerage account, $700,000 in an IRA, $200,000 in cash. After haircuts that is roughly $2.2 million eligible; after $360,000 down, closing costs, and nine months of reserves, about $1.78 million divides over an 84-month period into roughly $21,000 a month of qualifying income. FICO 794, 30% down on $1.2 million, no income documents in the file.

About these figures: the ranges on this page describe the non-QM lending market as of September 2026. They are not quotes, offers, or commitments to lend. Guidelines, rates, and program availability vary by lender, property type, and borrower profile, and they change often. Your terms are set after a full review of your credit, income documentation, assets, and the property. Not tax or legal advice. Equal Housing Opportunity.