This checklist covers every document required for a complete, fast-closing asset utilization file.
Ready to Apply? Get Pre-Qualified First — 15 Minutes, No Documents.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Document Category 1: Asset Statements (Core Documentation)
The foundation of the asset utilization file. Every qualifying account requires 2–3 consecutive months of complete statements.
What to gather:– US taxable brokerage accounts (Schwab, Fidelity, Vanguard, Merrill, Morgan Stanley, etc.)
– US savings and money market accounts
– US checking accounts (if used for asset qualification — separate from reserves documentation)
– IRA accounts (Traditional, Roth, SEP-IRA, SIMPLE IRA)
– 401k or 403b statements from current/prior employer
Statement requirements:All pages of each statement — not just the summary page.
Account holder name visible.
Account number visible.
Current balance prominently shown.
Most recent 2–3 consecutive monthly statements (or quarterly if monthly isn’t available for investment accounts).
What the statement should show:For brokerage accounts: total portfolio value, list of holdings.
For retirement accounts: total vested balance.
For savings/money market: current balance.
What you do NOT provide:Tax returns (1040, Schedule B, Schedule D).
Proof of investment income.
Documentation of dividends or capital gains.
The assets themselves — not the income they generate — are the qualifying factor.
Document Category 2: Supplemental Income Documentation
If combining asset utilization with Social Security, pension, or other documented income:
Social Security:Current year Social Security Award Letter (available from Social Security Administration).
This is the definitive documentation — one page showing the exact current monthly benefit amount.
SSA.gov allows electronic access to the award letter.
If the award letter shows a gross benefit that is non-taxable, the loan officer may gross it up by 125% for qualifying purposes.
Pension:Pension award letter or pension verification statement from the plan administrator.
Should show: plan name, benefit amount, payment frequency (monthly), start date.
If the pension is a defined benefit plan: confirm it’s in payment status (not projected future payments).
Annuity income:Annuity contract and most recent statement showing payment amount and remaining term.
Annuity income qualifies when the remaining payment term is 3+ years.
Part-time W-2 employment:Pay stubs (30 days) + W-2 + verbal employment verification (VOE).
Only current, active W-2 employment qualifies.
Document Category 3: Photo ID
Current government-issued photo ID. Driver’s license, state ID, or passport. Must not be expired.
For non-US citizens:Valid US visa (appropriate visa type confirming eligibility to purchase in the US).
ITIN documentation if using ITIN instead of SSN.
Document Category 4: Property Information
Once a specific property is identified:
Property address and purchase price.
Copy of the executed purchase agreement (once under contract).
Condo or HOA documentation if applicable (HOA fee, condo project insurance).
Document Category 5: Trust Documentation (If Applicable)
If qualifying assets are held in a revocable trust:
Complete trust document (all pages of the trust agreement).
Asset statements for trust-held accounts (same requirements as Categories 1 above).
The trust document must confirm: borrower is trustee, trust is revocable, borrower has unrestricted access to and control over assets.
The Asset Utilization Calculation Worksheet
Before applying, complete this worksheet:
Step 1 — List all eligible accounts:| Account | Type | Balance | Eligible % | Eligible Amount |
|—|—|—|—|—|
| Schwab Brokerage | Taxable | $2,850,000 | 100% | $2,850,000 |
| Fidelity IRA | Traditional | $1,200,000 | 70% | $840,000 |
| JPMorgan 401k | 401k | $680,000 | 70% | $476,000 |
| Chase Savings | Savings | $285,000 | 100% | $285,000 |
| Total Eligible| | | | $4,451,000|
Step 2 — Subtract deductions:Down payment: $240,000 (20% of $1.2M purchase).
Closing costs (estimated): $24,000 (2% of $1.2M loan).
Reserves (6 months × $9,200 PITIA): $55,200.
Total deducted: $319,200.
Step 3 — Net eligible assets:$4,451,000 − $319,200 = $4,131,800.
Step 4 — Qualifying income:$4,131,800 ÷ 84 = $49,188/monthasset utilization qualifying income.
Step 5 — Add supplemental income:SS: $4,100/month.
Total: $53,288/month.
Step 6 — DTI check:Target PITIA: $9,200/month. DTI: $9,200 ÷ $53,288 = 17.3%.
Pre-Application Checklist
Before applying, confirm every item:
All qualifying account statements organized (2–3 months, all pages)
Qualifying income calculated using the worksheet above
Down payment confirmed (in verifiable accounts, separate from qualifying assets if possible)
Reserves confirmed (3–6 months PITIA remaining after down + closing)
Credit score confirmed at 640+ (660+ for 85% LTV)
SS/pension documentation obtained if applicable
Target property identified (or pre-qualification on target purchase price)
State coverage confirmed (24-state primary residence program)
Common Documentation Mistakes
Mistake 1 — Providing income statements instead of asset statements:Some applicants submit 1099-DIV, 1099-INT, or K-1 forms showing investment income. These are not what asset utilization qualification requires. The account statements showing portfolio value are the documents.
Mistake 2 — Providing only the summary page:A Schwab account summary showing total portfolio value is insufficient. All pages of each monthly statement are required.
Mistake 3 — Not accounting for pending tax liabilities:Post-business-sale borrowers who have a pending capital gains tax obligation should disclose this so the net eligible assets are calculated accurately.
Mistake 4 — Including pledged assets:Any account pledged as collateral for an existing loan or line of credit may not qualify. Disclose any such arrangements to the loan officer.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
The 15-Minute Pre-Qualification: What to Have Ready
Before calling Mbanc for an asset utilization pre-qualification, have these numbers available (exact figures not required — approximations work for initial qualification):
$items = (
Asset utilization has the simplest documentation of any Non-QM program — and simpler than most conventional mortgage files. The entire income qualification rests on investment account statements. No tax return. No employer verification. No bank statement income analysis.
This checklist covers every document required for a complete, fast-closing asset utilization file.
Ready to Apply? Get Pre-Qualified First — 15 Minutes, No Documents.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Document Category 1: Asset Statements (Core Documentation)
The foundation of the asset utilization file. Every qualifying account requires 2–3 consecutive months of complete statements.
What to gather:– US taxable brokerage accounts (Schwab, Fidelity, Vanguard, Merrill, Morgan Stanley, etc.)
– US savings and money market accounts
– US checking accounts (if used for asset qualification — separate from reserves documentation)
– IRA accounts (Traditional, Roth, SEP-IRA, SIMPLE IRA)
– 401k or 403b statements from current/prior employer
Statement requirements:All pages of each statement — not just the summary page.
Account holder name visible.
Account number visible.
Current balance prominently shown.
Most recent 2–3 consecutive monthly statements (or quarterly if monthly isn’t available for investment accounts).
What the statement should show:For brokerage accounts: total portfolio value, list of holdings.
For retirement accounts: total vested balance.
For savings/money market: current balance.
What you do NOT provide:Tax returns (1040, Schedule B, Schedule D).
Proof of investment income.
Documentation of dividends or capital gains.
The assets themselves — not the income they generate — are the qualifying factor.
Document Category 2: Supplemental Income Documentation
If combining asset utilization with Social Security, pension, or other documented income:
Social Security:Current year Social Security Award Letter (available from Social Security Administration).
This is the definitive documentation — one page showing the exact current monthly benefit amount.
SSA.gov allows electronic access to the award letter.
If the award letter shows a gross benefit that is non-taxable, the loan officer may gross it up by 125% for qualifying purposes.
Pension:Pension award letter or pension verification statement from the plan administrator.
Should show: plan name, benefit amount, payment frequency (monthly), start date.
If the pension is a defined benefit plan: confirm it’s in payment status (not projected future payments).
Annuity income:Annuity contract and most recent statement showing payment amount and remaining term.
Annuity income qualifies when the remaining payment term is 3+ years.
Part-time W-2 employment:Pay stubs (30 days) + W-2 + verbal employment verification (VOE).
Only current, active W-2 employment qualifies.
Document Category 3: Photo ID
Current government-issued photo ID. Driver’s license, state ID, or passport. Must not be expired.
For non-US citizens:Valid US visa (appropriate visa type confirming eligibility to purchase in the US).
ITIN documentation if using ITIN instead of SSN.
Document Category 4: Property Information
Once a specific property is identified:
Property address and purchase price.
Copy of the executed purchase agreement (once under contract).
Condo or HOA documentation if applicable (HOA fee, condo project insurance).
Document Category 5: Trust Documentation (If Applicable)
If qualifying assets are held in a revocable trust:
Complete trust document (all pages of the trust agreement).
Asset statements for trust-held accounts (same requirements as Categories 1 above).
The trust document must confirm: borrower is trustee, trust is revocable, borrower has unrestricted access to and control over assets.
The Asset Utilization Calculation Worksheet
Before applying, complete this worksheet:
Step 1 — List all eligible accounts:| Account | Type | Balance | Eligible % | Eligible Amount |
|—|—|—|—|—|
| Schwab Brokerage | Taxable | $2,850,000 | 100% | $2,850,000 |
| Fidelity IRA | Traditional | $1,200,000 | 70% | $840,000 |
| JPMorgan 401k | 401k | $680,000 | 70% | $476,000 |
| Chase Savings | Savings | $285,000 | 100% | $285,000 |
| Total Eligible| | | | $4,451,000|
Step 2 — Subtract deductions:Down payment: $240,000 (20% of $1.2M purchase).
Closing costs (estimated): $24,000 (2% of $1.2M loan).
Reserves (6 months × $9,200 PITIA): $55,200.
Total deducted: $319,200.
Step 3 — Net eligible assets:$4,451,000 − $319,200 = $4,131,800.
Step 4 — Qualifying income:$4,131,800 ÷ 84 = $49,188/monthasset utilization qualifying income.
Step 5 — Add supplemental income:SS: $4,100/month.
Total: $53,288/month.
Step 6 — DTI check:Target PITIA: $9,200/month. DTI: $9,200 ÷ $53,288 = 17.3%.
Pre-Application Checklist
Before applying, confirm every item:
All qualifying account statements organized (2–3 months, all pages)
Qualifying income calculated using the worksheet above
Down payment confirmed (in verifiable accounts, separate from qualifying assets if possible)
Reserves confirmed (3–6 months PITIA remaining after down + closing)
Credit score confirmed at 640+ (660+ for 85% LTV)
SS/pension documentation obtained if applicable
Target property identified (or pre-qualification on target purchase price)
State coverage confirmed (24-state primary residence program)
Common Documentation Mistakes
Mistake 1 — Providing income statements instead of asset statements:Some applicants submit 1099-DIV, 1099-INT, or K-1 forms showing investment income. These are not what asset utilization qualification requires. The account statements showing portfolio value are the documents.
Mistake 2 — Providing only the summary page:A Schwab account summary showing total portfolio value is insufficient. All pages of each monthly statement are required.
Mistake 3 — Not accounting for pending tax liabilities:Post-business-sale borrowers who have a pending capital gains tax obligation should disclose this so the net eligible assets are calculated accurately.
Mistake 4 — Including pledged assets:Any account pledged as collateral for an existing loan or line of credit may not qualify. Disclose any such arrangements to the loan officer.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
The 15-Minute Pre-Qualification: What to Have Ready
Before calling Mbanc for an asset utilization pre-qualification, have these numbers available (exact figures not required — approximations work for initial qualification):
1. Approximate total value of US taxable brokerage accounts
2. Approximate total value of IRA and 401k accounts
3. Approximate total value of savings/money market
4. Monthly Social Security benefit (if claiming)
5. Monthly pension amount (if applicable)
6. Target purchase price range
7. State of target property
8. Credit score estimate
The loan officer can calculate qualifying income, maximum loan amount, and program fit in 10–15 minutes with just these numbers. No documents required for the initial call.
Asset Utilization vs All-Cash Purchase
Some asset-rich buyers consider all-cash purchases to avoid mortgages entirely. The comparison:
All-cash:No mortgage payment. No interest cost. Maximum negotiating leverage with sellers.
Asset utilization mortgage:Preserves portfolio liquidity. Portfolio continues compounding. Mortgage interest potentially tax-deductible. Cash stays invested.
At an 8.25% mortgage rate and a portfolio earning 8%+ in total return: the opportunity cost of deploying $1M in cash for real estate vs keeping it invested is approximately $0 (or slight net benefit to investing). At portfolio returns above 8.25%, keeping the cash invested and using the mortgage is theoretically superior.
The decision is not purely financial — it includes comfort with debt, desire for simplicity, and negotiating dynamics. But for asset-rich borrowers who are accustomed to managing investment portfolios, the asset utilization mortgage is a legitimate portfolio management tool, not just a necessity.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderAsset utilization mortgages are available from Mbanc in 24+ states for primary residence and second home, and DSCR investment property is available in 46 states. One lender, four Non-QM programs, all calculated in a single pre-qualification call. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Not a commitment to lend
For the full program details including current rate ranges, eligible states, and program-specific requirements: mbanc.com/blog/asset-utilization-loans/ (pillar) or call Mbanc directly. Pre-qualification call: 15 minutes, no documents required. Asset utilization qualifying income can be calculated from approximate portfolio values before any statement collection. Mbanc NMLS #38232 | Equal Housing Opportunity Lender | Not a commitment to lendAsset utilization has the simplest documentation of any Non-QM program — and simpler than most conventional mortgage files. The entire income qualification rests on investment account statements. No tax return. No employer verification. No bank statement income analysis.
This checklist covers every document required for a complete, fast-closing asset utilization file.
Ready to Apply? Get Pre-Qualified First — 15 Minutes, No Documents.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Document Category 1: Asset Statements (Core Documentation)
The foundation of the asset utilization file. Every qualifying account requires 2–3 consecutive months of complete statements.
What to gather:– US taxable brokerage accounts (Schwab, Fidelity, Vanguard, Merrill, Morgan Stanley, etc.)
– US savings and money market accounts
– US checking accounts (if used for asset qualification — separate from reserves documentation)
– IRA accounts (Traditional, Roth, SEP-IRA, SIMPLE IRA)
– 401k or 403b statements from current/prior employer
Statement requirements:All pages of each statement — not just the summary page.
Account holder name visible.
Account number visible.
Current balance prominently shown.
Most recent 2–3 consecutive monthly statements (or quarterly if monthly isn’t available for investment accounts).
What the statement should show:For brokerage accounts: total portfolio value, list of holdings.
For retirement accounts: total vested balance.
For savings/money market: current balance.
What you do NOT provide:Tax returns (1040, Schedule B, Schedule D).
Proof of investment income.
Documentation of dividends or capital gains.
The assets themselves — not the income they generate — are the qualifying factor.
Document Category 2: Supplemental Income Documentation
If combining asset utilization with Social Security, pension, or other documented income:
Social Security:Current year Social Security Award Letter (available from Social Security Administration).
This is the definitive documentation — one page showing the exact current monthly benefit amount.
SSA.gov allows electronic access to the award letter.
If the award letter shows a gross benefit that is non-taxable, the loan officer may gross it up by 125% for qualifying purposes.
Pension:Pension award letter or pension verification statement from the plan administrator.
Should show: plan name, benefit amount, payment frequency (monthly), start date.
If the pension is a defined benefit plan: confirm it’s in payment status (not projected future payments).
Annuity income:Annuity contract and most recent statement showing payment amount and remaining term.
Annuity income qualifies when the remaining payment term is 3+ years.
Part-time W-2 employment:Pay stubs (30 days) + W-2 + verbal employment verification (VOE).
Only current, active W-2 employment qualifies.
Document Category 3: Photo ID
Current government-issued photo ID. Driver’s license, state ID, or passport. Must not be expired.
For non-US citizens:Valid US visa (appropriate visa type confirming eligibility to purchase in the US).
ITIN documentation if using ITIN instead of SSN.
Document Category 4: Property Information
Once a specific property is identified:
Property address and purchase price.
Copy of the executed purchase agreement (once under contract).
Condo or HOA documentation if applicable (HOA fee, condo project insurance).
Document Category 5: Trust Documentation (If Applicable)
If qualifying assets are held in a revocable trust:
Complete trust document (all pages of the trust agreement).
Asset statements for trust-held accounts (same requirements as Categories 1 above).
The trust document must confirm: borrower is trustee, trust is revocable, borrower has unrestricted access to and control over assets.
The Asset Utilization Calculation Worksheet
Before applying, complete this worksheet:
Step 1 — List all eligible accounts:| Account | Type | Balance | Eligible % | Eligible Amount |
|—|—|—|—|—|
| Schwab Brokerage | Taxable | $2,850,000 | 100% | $2,850,000 |
| Fidelity IRA | Traditional | $1,200,000 | 70% | $840,000 |
| JPMorgan 401k | 401k | $680,000 | 70% | $476,000 |
| Chase Savings | Savings | $285,000 | 100% | $285,000 |
| Total Eligible| | | | $4,451,000|
Step 2 — Subtract deductions:Down payment: $240,000 (20% of $1.2M purchase).
Closing costs (estimated): $24,000 (2% of $1.2M loan).
Reserves (6 months × $9,200 PITIA): $55,200.
Total deducted: $319,200.
Step 3 — Net eligible assets:$4,451,000 − $319,200 = $4,131,800.
Step 4 — Qualifying income:$4,131,800 ÷ 84 = $49,188/monthasset utilization qualifying income.
Step 5 — Add supplemental income:SS: $4,100/month.
Total: $53,288/month.
Step 6 — DTI check:Target PITIA: $9,200/month. DTI: $9,200 ÷ $53,288 = 17.3%.
Pre-Application Checklist
Before applying, confirm every item:
All qualifying account statements organized (2–3 months, all pages)
Qualifying income calculated using the worksheet above
Down payment confirmed (in verifiable accounts, separate from qualifying assets if possible)
Reserves confirmed (3–6 months PITIA remaining after down + closing)
Credit score confirmed at 640+ (660+ for 85% LTV)
SS/pension documentation obtained if applicable
Target property identified (or pre-qualification on target purchase price)
State coverage confirmed (24-state primary residence program)
Common Documentation Mistakes
Mistake 1 — Providing income statements instead of asset statements:Some applicants submit 1099-DIV, 1099-INT, or K-1 forms showing investment income. These are not what asset utilization qualification requires. The account statements showing portfolio value are the documents.
Mistake 2 — Providing only the summary page:A Schwab account summary showing total portfolio value is insufficient. All pages of each monthly statement are required.
Mistake 3 — Not accounting for pending tax liabilities:Post-business-sale borrowers who have a pending capital gains tax obligation should disclose this so the net eligible assets are calculated accurately.
Mistake 4 — Including pledged assets:Any account pledged as collateral for an existing loan or line of credit may not qualify. Disclose any such arrangements to the loan officer.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
The 15-Minute Pre-Qualification: What to Have Ready
Before calling Mbanc for an asset utilization pre-qualification, have these numbers available (exact figures not required — approximations work for initial qualification):
1. Approximate total value of US taxable brokerage accounts
2. Approximate total value of IRA and 401k accounts
3. Approximate total value of savings/money market
4. Monthly Social Security benefit (if claiming)
5. Monthly pension amount (if applicable)
6. Target purchase price range
7. State of target property
8. Credit score estimate
The loan officer can calculate qualifying income, maximum loan amount, and program fit in 10–15 minutes with just these numbers. No documents required for the initial call.
Asset Utilization vs All-Cash Purchase
Some asset-rich buyers consider all-cash purchases to avoid mortgages entirely. The comparison:
All-cash:No mortgage payment. No interest cost. Maximum negotiating leverage with sellers.
Asset utilization mortgage:Preserves portfolio liquidity. Portfolio continues compounding. Mortgage interest potentially tax-deductible. Cash stays invested.
At an 8.25% mortgage rate and a portfolio earning 8%+ in total return: the opportunity cost of deploying $1M in cash for real estate vs keeping it invested is approximately $0 (or slight net benefit to investing). At portfolio returns above 8.25%, keeping the cash invested and using the mortgage is theoretically superior.
The decision is not purely financial — it includes comfort with debt, desire for simplicity, and negotiating dynamics. But for asset-rich borrowers who are accustomed to managing investment portfolios, the asset utilization mortgage is a legitimate portfolio management tool, not just a necessity.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderAsset utilization mortgages are available from Mbanc in 24+ states for primary residence and second home, and DSCR investment property is available in 46 states. One lender, four Non-QM programs, all calculated in a single pre-qualification call. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Not a commitment to lend
For the full program details including current rate ranges, eligible states, and program-specific requirements: mbanc.com/blog/asset-utilization-loans/ (pillar) or call Mbanc directly. Pre-qualification call: 15 minutes, no documents required. Asset utilization qualifying income can be calculated from approximate portfolio values before any statement collection. Mbanc NMLS #38232 | Equal Housing Opportunity Lender | Not a commitment to lendAsset utilization has the simplest documentation of any Non-QM program — and simpler than most conventional mortgage files. The entire income qualification rests on investment account statements. No tax return. No employer verification. No bank statement income analysis.
This checklist covers every document required for a complete, fast-closing asset utilization file.
Ready to Apply? Get Pre-Qualified First — 15 Minutes, No Documents.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Document Category 1: Asset Statements (Core Documentation)
The foundation of the asset utilization file. Every qualifying account requires 2–3 consecutive months of complete statements.
What to gather:– US taxable brokerage accounts (Schwab, Fidelity, Vanguard, Merrill, Morgan Stanley, etc.)
– US savings and money market accounts
– US checking accounts (if used for asset qualification — separate from reserves documentation)
– IRA accounts (Traditional, Roth, SEP-IRA, SIMPLE IRA)
– 401k or 403b statements from current/prior employer
Statement requirements:All pages of each statement — not just the summary page.
Account holder name visible.
Account number visible.
Current balance prominently shown.
Most recent 2–3 consecutive monthly statements (or quarterly if monthly isn’t available for investment accounts).
What the statement should show:For brokerage accounts: total portfolio value, list of holdings.
For retirement accounts: total vested balance.
For savings/money market: current balance.
What you do NOT provide:Tax returns (1040, Schedule B, Schedule D).
Proof of investment income.
Documentation of dividends or capital gains.
The assets themselves — not the income they generate — are the qualifying factor.
Document Category 2: Supplemental Income Documentation
If combining asset utilization with Social Security, pension, or other documented income:
Social Security:Current year Social Security Award Letter (available from Social Security Administration).
This is the definitive documentation — one page showing the exact current monthly benefit amount.
SSA.gov allows electronic access to the award letter.
If the award letter shows a gross benefit that is non-taxable, the loan officer may gross it up by 125% for qualifying purposes.
Pension:Pension award letter or pension verification statement from the plan administrator.
Should show: plan name, benefit amount, payment frequency (monthly), start date.
If the pension is a defined benefit plan: confirm it’s in payment status (not projected future payments).
Annuity income:Annuity contract and most recent statement showing payment amount and remaining term.
Annuity income qualifies when the remaining payment term is 3+ years.
Part-time W-2 employment:Pay stubs (30 days) + W-2 + verbal employment verification (VOE).
Only current, active W-2 employment qualifies.
Document Category 3: Photo ID
Current government-issued photo ID. Driver’s license, state ID, or passport. Must not be expired.
For non-US citizens:Valid US visa (appropriate visa type confirming eligibility to purchase in the US).
ITIN documentation if using ITIN instead of SSN.
Document Category 4: Property Information
Once a specific property is identified:
Property address and purchase price.
Copy of the executed purchase agreement (once under contract).
Condo or HOA documentation if applicable (HOA fee, condo project insurance).
Document Category 5: Trust Documentation (If Applicable)
If qualifying assets are held in a revocable trust:
Complete trust document (all pages of the trust agreement).
Asset statements for trust-held accounts (same requirements as Categories 1 above).
The trust document must confirm: borrower is trustee, trust is revocable, borrower has unrestricted access to and control over assets.
The Asset Utilization Calculation Worksheet
Before applying, complete this worksheet:
Step 1 — List all eligible accounts:| Account | Type | Balance | Eligible % | Eligible Amount |
|—|—|—|—|—|
| Schwab Brokerage | Taxable | $2,850,000 | 100% | $2,850,000 |
| Fidelity IRA | Traditional | $1,200,000 | 70% | $840,000 |
| JPMorgan 401k | 401k | $680,000 | 70% | $476,000 |
| Chase Savings | Savings | $285,000 | 100% | $285,000 |
| Total Eligible| | | | $4,451,000|
Step 2 — Subtract deductions:Down payment: $240,000 (20% of $1.2M purchase).
Closing costs (estimated): $24,000 (2% of $1.2M loan).
Reserves (6 months × $9,200 PITIA): $55,200.
Total deducted: $319,200.
Step 3 — Net eligible assets:$4,451,000 − $319,200 = $4,131,800.
Step 4 — Qualifying income:$4,131,800 ÷ 84 = $49,188/monthasset utilization qualifying income.
Step 5 — Add supplemental income:SS: $4,100/month.
Total: $53,288/month.
Step 6 — DTI check:Target PITIA: $9,200/month. DTI: $9,200 ÷ $53,288 = 17.3%.
Pre-Application Checklist
Before applying, confirm every item:
All qualifying account statements organized (2–3 months, all pages)
Qualifying income calculated using the worksheet above
Down payment confirmed (in verifiable accounts, separate from qualifying assets if possible)
Reserves confirmed (3–6 months PITIA remaining after down + closing)
Credit score confirmed at 640+ (660+ for 85% LTV)
SS/pension documentation obtained if applicable
Target property identified (or pre-qualification on target purchase price)
State coverage confirmed (24-state primary residence program)
Common Documentation Mistakes
Mistake 1 — Providing income statements instead of asset statements:Some applicants submit 1099-DIV, 1099-INT, or K-1 forms showing investment income. These are not what asset utilization qualification requires. The account statements showing portfolio value are the documents.
Mistake 2 — Providing only the summary page:A Schwab account summary showing total portfolio value is insufficient. All pages of each monthly statement are required.
Mistake 3 — Not accounting for pending tax liabilities:Post-business-sale borrowers who have a pending capital gains tax obligation should disclose this so the net eligible assets are calculated accurately.
Mistake 4 — Including pledged assets:Any account pledged as collateral for an existing loan or line of credit may not qualify. Disclose any such arrangements to the loan officer.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
The 15-Minute Pre-Qualification: What to Have Ready
Before calling Mbanc for an asset utilization pre-qualification, have these numbers available (exact figures not required — approximations work for initial qualification):
1. Approximate total value of US taxable brokerage accounts
2. Approximate total value of IRA and 401k accounts
3. Approximate total value of savings/money market
4. Monthly Social Security benefit (if claiming)
5. Monthly pension amount (if applicable)
6. Target purchase price range
7. State of target property
8. Credit score estimate
The loan officer can calculate qualifying income, maximum loan amount, and program fit in 10–15 minutes with just these numbers. No documents required for the initial call.
Asset Utilization vs All-Cash Purchase
Some asset-rich buyers consider all-cash purchases to avoid mortgages entirely. The comparison:
All-cash:No mortgage payment. No interest cost. Maximum negotiating leverage with sellers.
Asset utilization mortgage:Preserves portfolio liquidity. Portfolio continues compounding. Mortgage interest potentially tax-deductible. Cash stays invested.
At an 8.25% mortgage rate and a portfolio earning 8%+ in total return: the opportunity cost of deploying $1M in cash for real estate vs keeping it invested is approximately $0 (or slight net benefit to investing). At portfolio returns above 8.25%, keeping the cash invested and using the mortgage is theoretically superior.
The decision is not purely financial — it includes comfort with debt, desire for simplicity, and negotiating dynamics. But for asset-rich borrowers who are accustomed to managing investment portfolios, the asset utilization mortgage is a legitimate portfolio management tool, not just a necessity.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderAsset utilization mortgages are available from Mbanc in 24+ states for primary residence and second home, and DSCR investment property is available in 46 states. One lender, four Non-QM programs, all calculated in a single pre-qualification call. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Not a commitment to lend
For the full program details including current rate ranges, eligible states, and program-specific requirements: mbanc.com/blog/asset-utilization-loans/ (pillar) or call Mbanc directly. Pre-qualification call: 15 minutes, no documents required. Asset utilization qualifying income can be calculated from approximate portfolio values before any statement collection. Mbanc NMLS #38232 | Equal Housing Opportunity Lender | Not a commitment to lend
The loan officer can calculate qualifying income, maximum loan amount, and program fit in 10–15 minutes with just these numbers. No documents required for the initial call.
Asset Utilization vs All-Cash Purchase
Some asset-rich buyers consider all-cash purchases to avoid mortgages entirely. The comparison:
All-cash:No mortgage payment. No interest cost. Maximum negotiating leverage with sellers.
Asset utilization mortgage:Preserves portfolio liquidity. Portfolio continues compounding. Mortgage interest potentially tax-deductible. Cash stays invested.
At an 8.25% mortgage rate and a portfolio earning 8%+ in total return: the opportunity cost of deploying $1M in cash for real estate vs keeping it invested is approximately $0 (or slight net benefit to investing). At portfolio returns above 8.25%, keeping the cash invested and using the mortgage is theoretically superior.
The decision is not purely financial — it includes comfort with debt, desire for simplicity, and negotiating dynamics. But for asset-rich borrowers who are accustomed to managing investment portfolios, the asset utilization mortgage is a legitimate portfolio management tool, not just a necessity.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity LenderAsset utilization mortgages are available from Mbanc in 24+ states for primary residence and second home, and DSCR investment property is available in 46 states. One lender, four Non-QM programs, all calculated in a single pre-qualification call. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Not a commitment to lend
For the full program details including current rate ranges, eligible states, and program-specific requirements: mbanc.com/blog/asset-utilization-loans/ (pillar) or call Mbanc directly. Pre-qualification call: 15 minutes, no documents required. Asset utilization qualifying income can be calculated from approximate portfolio values before any statement collection. Mbanc NMLS #38232 | Equal Housing Opportunity Lender | Not a commitment to lend