Asset-Based Qualification
Qualify on your assets, not your income — no employment required.
Tanner & Zac Cook NMLS #2090424 / #2111496Cornerstone First Mortgage, LLC NMLS #1738554.89 · 45 reviews of Tanner Cook on Experience.comShort answer
An asset-based loan, also called asset depletion, is a non-QM mortgage that turns savings and investments into qualifying income, so no job is required. The lender counts each eligible asset at the share the investor allows, subtracts the funds you need to close and any required reserves, then divides by the investor’s set number of months (often 60).
Written by Tanner Cook, NMLS #2090424 · Updated
What is an asset-based loan?
An asset-based loan (often called an asset depletion loan) is a non-QM home loan that converts your eligible savings and investments into a monthly qualifying income figure, so you don’t need a job or employment income to qualify. It suits retirees, people between ventures and anyone whose wealth sits in accounts rather than a paycheck. On this program it is for primary residences only.
Built for retirees, near-retirees, and asset-rich borrowers with substantial savings or investments but little documentable monthly income.
You've built real wealth — a strong brokerage account, retirement savings, cash from selling a business — but your monthly income on paper is modest. Maybe you're retired, between ventures, or living off investments. Conventional underwriting keeps asking for a paycheck you don't have, even though you could write a check for the house today.
Asset-based qualification flips the question from "how much do you earn?" to "how much do you have?" The lender converts your eligible assets into a qualifying income figure, so your balance sheet does the talking. No employment is required.
What does an asset-based loan require?
- What you provide:
- Recent statements for every account you want counted, showing the funds are yours and seasoned.
- History needed:
- No employment history required. The assets must be seasoned, typically shown by a couple of months of statements.
The guideline parameters for this program are below. Guidelines subject to change without notice.
- Minimum FICO
- 660+
- Income documentation
- Eligible assets, after investor discounts, funds to close and reserves, divided by the investor’s set months, often 60 (no employment required)
- Eligible assets
- Checking, savings, stocks, bonds, 401(k), and IRA accounts
- Max LTV / loan amount
- Purchase up to 80% to $3M · cash-out up to 75% to $3M
- Rate structure
- Fixed-rate or adjustable-rate structures
- Occupancy
- Primary residence only
- Occupancy
- Primary residences only
- Eligible properties
- Single-family, townhome, condo, and non-warrantable condo
- Title / vesting
- Individual vesting
How is income calculated on an asset-based loan?
Eligible assets, each counted at the share the investor allows, minus the funds you need to close and any required reserves, then divided by the investor’s set number of months (often 60).
From account balances to monthly qualifying income
The lender counts each eligible asset at the share the investor allows, subtracts the funds you need to close and any required reserves, then divides what remains by the investor’s set number of months (often 60). The result is a monthly qualifying income figure, and it is used exactly like employment income to assess your ability to repay.
Not every dollar counts at face value. Cash in checking and savings is generally counted at or near 100%. Stocks, bonds, and other market accounts are usually discounted (a common convention is around 70% of value), and retirement accounts may be counted more conservatively still, especially if you are below the age of penalty-free access. The specifics vary by investor, which is exactly why we shop the file.
No job required — but the assets must be yours and seasoned
You do not need to be employed to qualify. What you do need is documented ownership and seasoning of the assets — typically a couple of months of statements showing the funds are yours and stable, not a recent deposit parked to inflate the total. Assets used to qualify generally must be liquid or reasonably liquid; illiquid holdings like a private business interest or real estate equity usually cannot be counted the same way.
What you bring to the table
Recent statements for every account you want counted, evidence of ownership, and documentation of the funds for down payment and closing (which come out of the same asset pool). Credit is pulled, and the ability-to-repay determination is made on the calculated asset-based income. Note this program is for primary residences only.
Asset-based loan vs. conventional: which fits you?
Asset-based qualification is unique among these programs because it ignores income entirely. Here is the contrast with a conventional loan.
| Feature | Asset-Based Loans | Conventional loan |
|---|---|---|
| Qualifying basis | Asset-Based LoansDiscounted eligible assets, minus funds to close and reserves, divided by the investor’s set months (often 60) | Conventional loanDocumented monthly income |
| Employment | Asset-Based LoansNot required | Conventional loanRequired (or documented income source) |
| Minimum FICO | Asset-Based Loans660+ | Conventional loanTypically 620+ |
| Occupancy | Asset-Based LoansPrimary residence only | Conventional loanPrimary, second, or investment |
| Loan amounts | Asset-Based LoansUp to 80% to $3M (75% cash-out) | Conventional loanConforming / high-balance limits |
How is an asset-based loan different from Fannie Mae’s asset method?
Conventional loans have a narrower version. Fannie Mae lets lenders turn employment-related assets, such as 401(k), IRA, SEP and Keogh balances, into qualifying income: the lender subtracts any early-distribution penalty and the funds used for the down payment, closing costs and required reserves, then divides the result by the months in the loan’s amortization term (Selling Guide B3-3.4-06). Fannie Mae limits that method to principal residences and second homes, and to purchases and limited cash-out refinances.
An asset-based loan can count a broader mix of accounts, including checking, savings and brokerage balances, and divides by the investor’s own set number of months (often 60) instead of the loan term.
Compare with related programs
If you do have monthly business cash flow, bank statements may qualify you for a higher loan-to-value than asset depletion.
If you have neither steady income nor enough liquid assets to depend on depletion alone, a flexible-qualifying structure may fit.
See all eight side by side in the self-employed loan program comparison.
What are the trade-offs of an asset-based loan?
- An asset-based loan usually costs more than a conventional loan, because non-QM loans aren’t backed by Fannie Mae or Freddie Mac.
- Market and retirement accounts usually count at less than their statement balance.
- The funds you need to close and any required reserves come out of the same asset pool before income is calculated.
- This program is for primary residences only.
When is an asset-based loan not a fit?
- You want to buy a second home or rental property.
- Your wealth is mostly real estate equity or a private business interest, which usually can’t be counted the same way.
- The money was deposited recently and isn’t seasoned yet.
Asset-based loan FAQs
Can I get an asset-based loan with no income, just assets?
Yes, an asset-based loan converts your eligible assets into a qualifying income figure, so no employment or earned income is required. An ability-to-repay determination is still made on that calculated figure.
How is qualifying income figured on an asset-based loan?
On an asset-based loan, each eligible asset is counted at the share the investor allows, the funds you need to close and any required reserves are subtracted, and the remainder is divided by the investor’s set number of months (often 60). Cash counts at or near full value; market and retirement accounts are typically discounted to account for volatility and access.
Which accounts can I use for an asset-based loan?
An asset-based loan can use checking, savings, stocks, bonds, 401(k), and IRA accounts. The mix of what counts and at what percentage varies by investor.
What credit score do I need for an asset-based loan?
An asset-based loan on this program starts at a 660 FICO, and guidelines vary by investor.
How much can I borrow with an asset-based loan?
Up to 80% loan-to-value to $3M on a purchase, and up to 75% to $3M on a cash-out refinance.
Can I use an asset-based loan for a second home or rental?
No, an asset-based loan on this program is for primary residences only. For investment properties, ask us about the bank statement program or a DSCR loan through a sibling lender.
Do my assets have to be liquid for an asset-based loan?
Generally yes: an asset-based loan counts liquid or reasonably liquid accounts. Illiquid holdings such as a private business interest usually cannot be counted the same way.
Are retirement accounts counted at full value on an asset-based loan?
Usually not: an asset-based loan often counts retirement accounts conservatively, especially if you are below the age for penalty-free withdrawals. The exact discount depends on the investor.
Is an asset-based loan the same as a reverse mortgage?
No, an asset-based loan is not a reverse mortgage. It is a standard forward mortgage with regular payments; it simply qualifies you on assets rather than income.
Guideline notes
July 2026 update: asset-based (asset-depletion) qualification remains available for primary residences and is a natural fit for the wave of self-directed and early retirees. Eligible account types continue to include checking, savings, stocks, bonds, and retirement accounts such as 401(k)s and IRAs.
Investors apply haircuts to certain assets — retirement and market-based accounts are typically counted at less than face value to account for volatility and access — so your usable figure is more conservative than your statement balance. Program availability and guidelines are subject to change without notice.
Guides for asset-based loans
Sources
Federal rules and agency guides referenced on this page. Non-QM investors set their own guidelines, which vary by investor.
Talk to the Cook Brothers Mortgage Team about your file
We check your scenario in-house against the 25+ non-QM investor programs we underwrite to, then run your file against the guidelines of the one that fits. Start with the two-minute qualifier or reach out directly.
Non-QM loan programs. Alternative income documentation required. All loans subject to underwriting approval, income/asset verification, and ability-to-repay determination. Not all applicants will qualify. Program availability and guidelines subject to change without notice.