Not Sure Which Program Fits Your Situation?
A Non-QM specialist reviews your income type and recommends the right path
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Side-by-Side Comparison
| Feature | Option A | Option B |
|---|---|---|
| Qualification basis | Monthly income from deposits | Liquid assets ÷ 84 months |
| Active income required | Yes (self-employment) | No |
| Tax returns required | No | No |
| Who it’s designed for | Self-employed earners | Retirees, asset-rich borrowers |
| Minimum credit score | 640 | 640 |
| Max LTV | 85% | 85% |
| Loan amounts | Up to $4,000,000 | Up to $4,000,000 |
| Required assets | Down payment + reserves only | Assets sufficient to support loan |
How Asset Utilization Income Works
Asset utilization calculates a synthetic monthly income by dividing eligible liquid assets by 84 months. A borrower with $4,000,000 in eligible assets (IRA, brokerage accounts, savings) generates $47,619 per month in qualifying income â without earning a dollar of active income.
Eligible assets typically include:
– Checking and savings accounts
– Investment accounts (stocks, bonds, mutual funds)
– IRA and 401k accounts (at a discounted percentage)
– CDs and money market accounts
The asset utilization program specifically excludes bank statement income and is only available on the Prime Ascent program (not Prime Ascent Plus).
When Asset Utilization Is Better
Retirees with strong portfolios. A retired business owner who sold their company for $5,000,000 and lives off investment distributions has no “earned income” â but $5,000,000 in eligible assets produces $59,524/month in qualifying income. Bank statements don’t show this because there are no regular deposits from an active business.
Recent retirees in transition. Borrowers who have recently stopped working but have not yet started Social Security or pension income can use assets to bridge the income gap.
High-net-worth borrowers with episodic income. Investors who receive large irregular distributions rather than monthly deposits may have stronger asset utilization qualification than bank statement qualification.
When Bank Statements Are Better
Active business owners. If you’re actively running a business generating consistent monthly deposits, bank statement income is almost always higher than asset utilization income â unless your asset base is enormous.
Borrowers with limited liquid assets. Asset utilization requires sufficient assets to generate qualifying income at the loan amount needed. Bank statement qualification requires only the standard down payment and reserves.
Borrowers where deposit income clearly exceeds asset income. Do the math: if your bank statement income exceeds (eligible assets ÷ 84), bank statements win.
Frequently Asked Questions
Which program is better for a self-employed borrower?
It depends entirely on how income is documented. Bank statement loans are designed for self-employed borrowers whose tax returns understate actual cash flow. The comparison product may be better or worse depending on your specific income documentation profile.
Does Mbanc offer both programs?
Yes. Mbanc offers bank statement loans, DSCR loans, 1099 loans, and asset utilization loans. A single loan officer can assess which program fits your situation best.
Can I combine both methods?
In some scenarios, income from multiple sources or documentation types can be blended. Discuss with your loan officer whether a combination approach is possible for your file.
What if I qualify for both options?
If both programs produce similar qualifying income, the choice is usually based on rate, LTV, documentation complexity, and overall loan cost. Your loan officer will run the full comparison.
Go Deeper
About the Author
Mayer Dallal is the Managing Director of Mbanc (Mortgage Bank of California, NMLS #38232), a consumer-direct Non-QM lender specializing in bank statement loans, DSCR loans, and asset utilization programs for self-employed borrowers and real estate investors. Mbanc is licensed in 22 states for primary residence lending plus an additional 24 states and Washington DC for non-owner-occupied investment property financing under the business-purpose exemption.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
| Mortgage Bank of California
