Assets as Qualifying Income · Maryland & Virginia · NMLS #2656628

Wealthy on Paper, "No Income" on Your Tax Return? Your Assets Can Qualify You.

An asset qualification loan, sometimes called an asset depletion or asset utilization mortgage, converts your savings, investments, and retirement accounts into a monthly qualifying income figure. No employment. No tax returns in many cases. It is built for retirees, investors, business sellers, and self-employed borrowers whose tax returns dramatically understate their real financial strength.

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No employment verification No tax returns in many cases Primary, second home & investment Supports jumbo loan amounts

Ken Powell

Mortgage Loan Officer · Fairway Home Mortgage

NMLS #2656628 · Equal Housing Lender

How It Works

Your Assets Become a Monthly Income Stream.

The lender totals your eligible assets, applies program discounts, and divides by a set period, typically 60, 84, 120, or 360 months, to produce a qualifying monthly income. You are not required to sell or move a dollar of it; your investments stay invested.

📊 Worked Example

Checking and savings: $500,000
Stocks and bonds: $1,500,000
Retirement accounts: $1,000,000
Total eligible assets: $3,000,000
$3,000,000 ÷ 120 months = $25,000/month qualifying income

Illustration only. Programs discount certain asset types and use different depletion periods, so your qualifying figure is determined by the specific program and underwriting.

✅ Typical Eligible Assets

Checking, savings, and money market accounts
Certificates of deposit (CDs)
Stocks, bonds, and mutual funds
Retirement accounts — 401(k), IRA (may be discounted before retirement age)
Trust accounts

Assets must be documented, seasoned, and verifiable. Cash typically counts at 100%; stocks at roughly 70 to 100%; retirement funds are often discounted for borrowers under retirement age.

Who It's Built For

"Asset Rich, Income Poor on Paper."

This comes up constantly in Southern Maryland: retirees in Calvert, Charles, and St. Mary's Counties who own their homes free and clear and hold sizable retirement accounts, but no longer show enough documented income to qualify conventionally.

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Retirees

Large investment accounts, no current paycheck. A borrower who retired last year with $3 million invested can struggle in conventional underwriting and qualify comfortably here.

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Business Owners & Sellers

Owners with high write-offs whose returns show minimal income, and clients holding substantial cash after selling a business.

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Investors & Trust Beneficiaries

Households living on portfolio income, trust fund beneficiaries, and high-net-worth individuals with intentionally low taxable income.

✅ Strong Candidates

Retirees and recently retired borrowers
Business owners with high write-offs
Investors living on portfolio income
Trust beneficiaries and business sellers with substantial liquid assets

⚖️ Usually a Better Fit Elsewhere

Borrowers with limited liquid assets or small savings
First-time buyers early in their savings journey
Borrowers who qualify easily with conventional financing
Anyone whose top priority is the absolute lowest rate — non-QM pricing runs higher than agency loans

The Honest Tradeoffs

What to Know Before You Choose This Route.

Advantages

No employment verification, and no tax returns in many cases
Recognizes real financial strength your tax returns hide
Supports large and jumbo loan amounts, plus primary, second home, investment, and cash-out uses
Your assets stay invested and liquid instead of being spent on an all-cash purchase

Considerations

Rates are typically higher than agency loans, especially at lower credit scores or higher LTVs
Substantial assets are required — roughly $1.44M in eligible assets to support $12,000/month in payment and debts on a 120-month program
Asset discounts and seasoning rules reduce what counts
Market swings before closing can affect qualification, and full documentation of every account is required

Fairway has a loan program for almost any mortgage scenario. Contact Ken to determine whether assets as qualifying income, or another program entirely, best fits your situation.

Frequently Asked Questions

Asset Qualification Questions, Answered.

Do I have to sell my investments to use them for qualifying?+

No. The lender uses your documented balances to calculate an income figure; the assets stay in your accounts, remain invested, and keep growing. That is a major advantage over paying cash for a home.

How is the qualifying income calculated?+

Eligible assets are totaled, program discounts are applied (cash typically counts fully; stocks and retirement accounts may be discounted), and the result is divided by the program's depletion period, commonly 60, 84, 120, or 360 months. $2.5 million over 120 months, for example, produces about $20,833 per month in qualifying income.

What credit score and reserves do I need?+

Most programs look for a 680 to 740+ credit score, significant post-closing reserves, and conservative debt-to-income ratios. Every account used must be documented, seasoned, and verifiable, and large unexplained deposits will raise underwriting questions.

Can I use this for a second home, investment property, or jumbo loan?+

Yes. Asset qualification programs are available for primary residences, second homes, investment properties, jumbo loan amounts, and cash-out refinances, which makes them especially useful for higher-priced Southern Maryland waterfront and estate purchases.

Is this the same as an asset depletion loan?+

Yes. Assets as qualifying income, asset depletion, asset utilization, and asset-based mortgage all describe the same concept: converting documented liquid assets into a monthly qualifying income stream instead of relying on employment or tax-return income.

Find Out What Your Assets Qualify You For.

Book a free 15-minute call. Ken will run your asset mix through the available programs, show the qualifying income each one produces, and compare it against every other option you have, including conventional.

📅 Book a Free Asset Review Apply Now →