Asset Utilization Jumbo
When tax returns understate real wealth. Liquid assets — brokerage, retirement, cash — convert to monthly qualifying income via a structured divisor. Used heavily by HNW borrowers with strategic income management.
Quick answer
- Income source: liquid assets converted to monthly qualifying income via a structured formula.
- Tax returns? Not used.
- Best for: high-net-worth borrowers with substantial liquid assets but low (or zero) reported income.
- Loan amount: up to $3M+.
- Max LTV: 80% on most programs (sometimes 85%).
- Min FICO: 700.
How qualifying income is calculated
- Identify your eligible liquid assets (see list below).
- Apply each asset class's qualifying ratio — typically 100% of cash, 70–80% of marketable securities, 60–70% of vested retirement balances (under-59½ haircut).
- Subtract down payment + closing + reserves required for the transaction.
- Divide remaining usable assets by a term — commonly 60 months — to derive monthly qualifying income.
- That figure goes onto the application as your income and is subject to standard DTI underwriting.
Eligible liquid assets
- Cash in checking, savings, money market, CDs.
- Stocks, bonds, mutual funds, ETFs (typically 70–80% of market value).
- Retirement accounts: 401(k), IRA, Roth — usually 60–70% of vested balance, deeper haircut if under 59½.
- Some trust assets — case-by-case.
Not eligible: business equity, real-estate equity (unless cashed out), unvested stock, restricted shares.
Worked example — $2M Paradise Valley purchase
Borrower has $2.8M in a brokerage account, $700K in retirement, $200K cash. Tax return shows minimal recurring income (managing investments, capital-gain-driven). Wants $1.6M loan on a $2M home.
| Step | Amount |
|---|---|
| Brokerage × 80% | $2,240,000 |
| Retirement × 65% | $455,000 |
| Cash × 100% | $200,000 |
| Eligible total | $2,895,000 |
| Less down + closing + reserves (~$420K) | ($420,000) |
| Remaining usable | $2,475,000 |
| ÷ 60 months | $41,250 |
| Monthly qualifying income | $41,250 |
Illustrative — actual ratios vary by investor.
FAQ
Will the assets be liquidated?
No. Asset utilization is a qualifying calculation, not a withdrawal. The assets remain yours and stay invested as you choose.
Can I combine asset utilization with W-2 income?
Yes. Many high-end files blend executive base + bonus with asset-derived income to optimize qualifying.
Are 401(k) and IRA balances counted?
Yes, with haircuts. Pre-59½ retirement is typically discounted further to account for early-withdrawal penalty exposure. Vested-only balances count.
How is this different from Asset Qualifier?
Asset Utilization converts assets to monthly income (you can borrow on the income). Asset Qualifier uses assets to cover the entire loan in one shot — no income calculation. Asset Qualifier requires more assets but skips income entirely.
Are crypto holdings eligible?
Generally no — most jumbo investors don't accept crypto as a qualifying or reserve asset. Some make exceptions on a custody-and-statement basis.
Curious if Asset Utilization Jumbo is the right fit?
Bring your numbers — we'll model real pricing in 20 minutes.