Available on Prime, Super Prime, and Apex Prime
An Asset Utilization loan lets borrowers qualify using liquid assets instead of employment income. No tax returns, pay stubs, or job verification required, and assets never need to be liquidated or pledged. AD Mortgage calculates qualifying income by dividing eligible assets by just 60 months — so $1.2 million in assets equals $20,000 in monthly qualifying income (many lenders divide by 84, yielding far less). Ideal for retirees, self-employed borrowers, entrepreneurs, high-net-worth individuals, and anyone with strong assets but variable income. Loan amounts up to $5 million with FICO from 620.
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An asset utilization loan is a Non-QM loan that converts a borrower’s liquid assets into qualifying income instead of relying on W-2s, tax returns, or employment verification. Borrowers keep full ownership and control of their assets — nothing is sold, frozen, or pledged as collateral.
Yes, they can. Not all potential homeowners choose to fund their home loans in the same way. Sometimes, their income can come from non-traditional sources, such as being self-employed or retired. In some cases, the majority of a person’s actual savings can be in the assets they own rather than in their job income. If lenders looked at job income alone, these people would not qualify for a home loan, but the value of their assets could be plenty to assure the lender that they are not a risk. That is why we have Asset Utilization programs.
Rather than using their income from employment, borrowers use an Asset Utilization loan to qualify for a mortgage provided they have substantial assets. In this case, their monthly income is calculated by dividing total liquid assets by 60 months. Using funds from their assets means they do not have to show income from any other source, including employment. So long as they have enough assets to pay for the loan and regular living expenses, they can qualify.
AD Mortgage divides total eligible assets by 60 months. Eligible assets count at 100% for checking, savings, money market, and publicly traded securities, and 70% for retirement accounts. Example: $1.2 million in eligible assets ÷ 60 = $20,000 in monthly qualifying income. Because many lenders use an 84-month divisor, the same borrower often qualifies for significantly more with AD Mortgage.
No, they do not. The assets are solely used to demonstrate that they have the ability to repay the loan. We look at liquid assets as their loan collateral, similar to how W2s and pay stubs are evaluated for a traditional Government or Conventional loan.
Minimum 620 FICO (680 for interest-only), at least 3 months of reserves, 3 months of asset seasoning, DTI up to 55%, and CLTV up to 80%. Loan amounts go up to $5 million across primary, second home, and investment properties, with gift funds allowed when the borrower contributes at least 20% of their own funds.
Only certain types of assets will help them qualify for an Asset Utilization loan. These include their checking or savings accounts, money market accounts, CD (certificate of deposit) accounts, and so on. Certain types of retirement accounts can also qualify, like a 401(k) or an IRA. In addition, certain types of investment accounts like mutual funds, stocks, and bonds may also qualify.
They are different names for the same concept — using assets rather than income to qualify. Note this differs from a pledged-asset loan, where assets are held as collateral and may be restricted; with an asset utilization loan, the borrower’s accounts stay fully accessible and continue earning.
