An asset utilization loan (sometimes called asset depletion) is a mortgage that qualifies a borrower based on the value of their liquid assets rather than their employment income. The premise is straightforward: a borrower with substantial cash, brokerage, and retirement balances has the financial capacity to carry a mortgage — even if their current tax return shows modest income from active employment.
The mechanics are mathematical. Mbanc sums your eligible asset value, applies a fixed 84-month divisor, and the result is your monthly qualifying income. From there, the math runs through standard Non-QM underwriting: 50% DTI ceiling, 8% assumed rate, LTV grid by credit score and loan size. The 84-month figure is purely an underwriting convention — your assets never actually move. They stay in your accounts, earning what they were already earning, and serve only as proof of capacity.
"A retired CEO with $4 million in liquid assets has the financial capacity to buy a $2 million primary residence. The big banks tell them no because their W-2 says zero. That's a documentation problem, not a creditworthiness problem. We built a program that reads the balance sheet."
— Mayer Dallal, Managing Director, Mbanc
Why the 84-month divisor exists. Conventional asset-depletion programs vary widely on the divisor — some use 360 months (30 years), some 240 (20 years), some 120 (10 years), some 60. Mbanc uses 84 months — a 7-year horizon — which produces a meaningful qualifying income without overstating it. A $2 million asset base, for example, produces $23,800 per month of qualifying income at the 84-month divisor — substantial, conservative, and realistic for the kind of borrower this program serves.
The three things that determine your qualification:
- Your eligible asset value — the weighted sum of cash (at 100%), brokerage (at 80%), and retirement (at 70%/60% depending on age). This drives qualifying income via the 84-month divisor.
- Our program ceiling — $3 million on Mbanc's core Non-QM asset utilization program. Larger loans via portfolio quote.
- Your property & LTV cap — a separate check driven by credit score, loan size, property type, and loan purpose. At 720+ FICO on a primary purchase, Mbanc lends up to 85% LTV on loans up to $1.5M, stepping down to 75% above $2.5M.
The calculator's headline number is your income capacity — what you qualify for based on your assets, capped at $3M. The "Your scenario" panel below the headline does the property/LTV check for the specific transaction you're modeling. Both matter, and the calculator surfaces both clearly.
One important note: your assets are not pledged. Many borrowers ask whether an asset utilization loan requires them to lock up, pledge, or liquidate the assets used in the qualifying calculation. It does not. The 84-month divisor is purely an underwriting convention — Mbanc verifies asset ownership via account statements at the time of application, but the assets remain entirely yours after closing, in the same accounts, earning the same returns, with no encumbrance, no pledge, and no required draw-down schedule. The only collateral on the loan is the property itself.
