The asset utilization income calculation has four steps. Mastering them takes five minutes. The math is straightforward; the strategic questions — which assets to include, which period to document, how to position retirement vs taxable accounts — require more thought.

Get Your Asset Utilization Income Calculated Today — 15 Minutes.

See What Your Assets Qualify You For

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Step 1: Identify All Eligible Liquid Assets

Eligible account types:
Checking accounts: 100%
Savings accounts: 100%
Money market accounts and funds: 100%
Taxable brokerage accounts (stocks, bonds, ETFs, mutual funds): 100%
CDs (certificates of deposit): 100%
IRA accounts: 70%
401(k), 403(b), 457 plans: 70%
SEP-IRA, SIMPLE IRA: 70%

Not eligible:
Down payment and closing cost funds (excluded from qualifying assets)
Home equity
Business interests
Unvested RSUs or options
Assets held in trusts without clear borrower access (trust documentation required)
Collectibles, art, precious metals

Step 2: Subtract Down Payment and Closing Costs

The funds being deployed for the down payment and closing costs are not available to sustain future mortgage payments. They must be excluded from qualifying assets.

Example:
Total liquid assets: $3,850,000.
Down payment needed (20% of $1,600,000 purchase): $320,000.
Estimated closing costs: $40,000.
Available qualifying assets: $3,490,000.

This is a common calculation error — many borrowers assume their full portfolio qualifies. The deployed funds (down payment + closing costs) are excluded first.

Step 3: Apply Eligibility Factors

Taxable accounts (100%):
$2,400,000 brokerage account × 100% = $2,400,000 eligible.

Retirement accounts (70%):
$680,000 IRA × 70% = $476,000 eligible.
$340,000 401(k) × 70% = $238,000 eligible.

Cash accounts (100%):
$70,000 savings × 100% = $70,000 eligible.

Total eligible after all factors: $3,184,000.

Step 4: Divide by 84

$3,184,000 ÷ 84 = $37,905/month qualifying income.

At 50% DTI: maximum PITIA = $18,952/month.
At 8.25% on $1,600,000 loan: P&I = $12,026/month + taxes/insurance = estimated $14,500–$16,000/month total PITIA. Comfortable.

Seven Complete Calculation Examples

Example 1 — Retired physician:
Taxable brokerage: $3,200,000. IRA: $480,000 (70% = $336,000). Down payment excluded: $280,000.
Total eligible: $3,200,000 + $336,000 − $280,000 = $3,256,000.
Monthly qualifying: $3,256,000 ÷ 84 = $38,762/month.

Example 2 — Business seller, 6 months post-close:
Cash from company sale in checking/savings: $6,400,000. Down payment excluded: $350,000.
Total eligible: $6,050,000. Monthly qualifying: $6,050,000 ÷ 84 = $72,024/month.
Extraordinary. This borrower supports any primary residence purchase under the $4M program cap.

Example 3 — Tech executive with RSUs:
Vested RSU cash in brokerage (sold): $1,850,000. Unvested RSUs: $0 (not eligible). 401(k): $420,000 × 70% = $294,000. Down payment excluded: $225,000.
Total eligible: $1,850,000 + $294,000 − $225,000 = $1,919,000.
Monthly qualifying: $1,919,000 ÷ 84 = $22,845/month.

Example 4 — Early retiree (FIRE), heavy retirement allocation:
Taxable brokerage: $850,000. Roth IRA: $420,000 × 70% = $294,000. Traditional IRA: $680,000 × 70% = $476,000.
Down payment excluded: $135,000.
Total eligible: $850,000 + $294,000 + $476,000 − $135,000 = $1,485,000.
Monthly qualifying: $1,485,000 ÷ 84 = $17,679/month.

Example 5 — Trust beneficiary with verified access:
Brokerage trust assets with documented borrower access: $4,200,000 × 100% = $4,200,000.
Down payment: $400,000 excluded.
Total eligible: $3,800,000. Monthly qualifying: $3,800,000 ÷ 84 = $45,238/month.

Example 6 — Combination: assets + pension:
Eligible assets: $1,800,000 ÷ 84 = $21,429/month from assets.
Pension income: $7,200/month.
Social Security: $3,400/month.
Combined: $32,029/month qualifying income.

Example 7 — Minimum viable asset qualification:
Target loan: $650,000. Rate 8.25%. P&I: $4,877. Taxes + insurance: $1,200. PITIA: $6,077.
Required qualifying income at 50% DTI: $12,154/month.
Required eligible assets: $12,154 × 84 = $1,020,936 minimum eligible assets.

This is the useful reverse calculation: given a target PITIA, what is the minimum asset level needed?

The Retirement Account Optimization Decision

For borrowers with significant retirement account balances, the 70% eligibility factor means each retirement dollar produces less qualifying income than a taxable dollar:

$1M taxable brokerage: $1,000,000 ÷ 84 = $11,905/month.
$1M IRA: $700,000 ÷ 84 = $8,333/month.

For borrowers making any investment decisions, maintaining taxable accounts (rather than maximizing retirement contributions) preserves more qualifying income per dollar for future asset utilization mortgages. This is not financial advice — but it is a relevant consideration for those who anticipate using asset utilization for mortgage qualification within the next several years.

Frequently Asked Questions

Do I have to actually use my assets to pay the mortgage?

No. The depletion calculation is a qualification framework. Your assets remain invested throughout the loan term. The loan is repaid from whatever sources the borrower chooses — portfolio income, other income, the assets themselves, or proceeds from a future sale.

What if my portfolio grows during the loan term?

The qualifying income calculation is fixed at origination. Portfolio growth after close doesn’t affect the mortgage terms — it simply means the borrower’s actual financial position is stronger than the qualification model assumed.

Can I include joint assets with my spouse?

Yes — assets jointly held are fully eligible. Assets in the co-borrower’s name alone require the co-borrower to be on the loan application.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

The Four-Step Calculation: Quick Reference

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The asset utilization income calculation has four steps. Mastering them takes five minutes. The math is straightforward; the strategic questions — which assets to include, which period to document, how to position retirement vs taxable accounts — require more thought.

Get Your Asset Utilization Income Calculated Today — 15 Minutes.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Step 1: Identify All Eligible Liquid Assets

Step 2: Subtract Down Payment and Closing Costs

The funds being deployed for the down payment and closing costs are not available to sustain future mortgage payments. They must be excluded from qualifying assets.

Example:
Total liquid assets: $3,850,000.
Down payment needed (20% of $1,600,000 purchase): $320,000.
Estimated closing costs: $40,000.
Available qualifying assets: $3,490,000.

This is a common calculation error — many borrowers assume their full portfolio qualifies. The deployed funds (down payment + closing costs) are excluded first.

Step 3: Apply Eligibility Factors

Taxable accounts (100%):
$2,400,000 brokerage account × 100% = $2,400,000 eligible.

Retirement accounts (70%):
$680,000 IRA × 70% = $476,000 eligible.
$340,000 401(k) × 70% = $238,000 eligible.

Cash accounts (100%):
$70,000 savings × 100% = $70,000 eligible.

Total eligible after all factors: $3,184,000.

Step 4: Divide by 84

$3,184,000 ÷ 84 = $37,905/month qualifying income.

At 50% DTI: maximum PITIA = $18,952/month.
At 8.25% on $1,600,000 loan: P&I = $12,026/month + taxes/insurance = estimated $14,500–$16,000/month total PITIA. Comfortable.

Seven Complete Calculation Examples

This is the useful reverse calculation: given a target PITIA, what is the minimum asset level needed?

The Retirement Account Optimization Decision

For borrowers with significant retirement account balances, the 70% eligibility factor means each retirement dollar produces less qualifying income than a taxable dollar:

$1M taxable brokerage: $1,000,000 ÷ 84 = $11,905/month.
$1M IRA: $700,000 ÷ 84 = $8,333/month.

Frequently Asked Questions

Do I have to actually use my assets to pay the mortgage?

What if my portfolio grows during the loan term?

Can I include joint assets with my spouse?

Yes — assets jointly held are fully eligible. Assets in the co-borrower’s name alone require the co-borrower to be on the loan application.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

The Four-Step Calculation: Quick Reference

1. Total all liquid assets by account type.
2. Subtract down payment + closing cost funds (these are excluded).
3. Apply eligibility factors: 100% for checking/brokerage/savings, 70% for retirement accounts.
4. Divide remaining total by 84.

The reverse calculation (most useful for planning):
Target PITIA × 2 (50% DTI) × 84 = minimum eligible assets required.

$12,000 PITIA target × 2 × 84 = $2,016,000 in eligible assets needed.
$8,000 PITIA target × 2 × 84 = $1,344,000 needed.
$16,000 PITIA target × 2 × 84 = $2,688,000 needed.

This reverse calculation tells you immediately whether your asset level supports your purchase target — before any formal application.

The Combination Strategy: Assets + Income

Asset utilization qualifying income can be combined with ANY documented income source:

Social Security: Award letter documents $3,400/month. Add directly to asset qualifying income.
Pension: Award letter documents $7,200/month. Add directly.
Rental income: Schedule E or lease agreement documents $4,500/month. Add directly.
Part-time W-2: Pay stubs document $4,000/month. Add directly.
1099 income: 1099 qualifying at 90% = $8,000/month. Add directly.

The combined income from assets + any documented income sources is the total qualifying income. For partially-retired borrowers, this combination typically produces comfortable DTI ratios even when either income source alone would be insufficient.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

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Summary: The Asset Utilization Income Calculation at a Glance

Step 1: Total all checking + savings + brokerage + CDs at 100%. Total all IRA + 401k + retirement at 70% of vested balance.
Step 2: Subtract down payment + closing costs.
Step 3: Divide total eligible assets by 84.
Step 4: Result = monthly qualifying income for DTI purposes.

Reverse calculation: target monthly PITIA × 2 × 84 = minimum eligible assets needed.The asset utilization income calculation has four steps. Mastering them takes five minutes. The math is straightforward; the strategic questions — which assets to include, which period to document, how to position retirement vs taxable accounts — require more thought.

Get Your Asset Utilization Income Calculated Today — 15 Minutes.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Step 1: Identify All Eligible Liquid Assets

Step 2: Subtract Down Payment and Closing Costs

The funds being deployed for the down payment and closing costs are not available to sustain future mortgage payments. They must be excluded from qualifying assets.

Example:
Total liquid assets: $3,850,000.
Down payment needed (20% of $1,600,000 purchase): $320,000.
Estimated closing costs: $40,000.
Available qualifying assets: $3,490,000.

This is a common calculation error — many borrowers assume their full portfolio qualifies. The deployed funds (down payment + closing costs) are excluded first.

Step 3: Apply Eligibility Factors

Taxable accounts (100%):
$2,400,000 brokerage account × 100% = $2,400,000 eligible.

Retirement accounts (70%):
$680,000 IRA × 70% = $476,000 eligible.
$340,000 401(k) × 70% = $238,000 eligible.

Cash accounts (100%):
$70,000 savings × 100% = $70,000 eligible.

Total eligible after all factors: $3,184,000.

Step 4: Divide by 84

$3,184,000 ÷ 84 = $37,905/month qualifying income.

At 50% DTI: maximum PITIA = $18,952/month.
At 8.25% on $1,600,000 loan: P&I = $12,026/month + taxes/insurance = estimated $14,500–$16,000/month total PITIA. Comfortable.

Seven Complete Calculation Examples

This is the useful reverse calculation: given a target PITIA, what is the minimum asset level needed?

The Retirement Account Optimization Decision

For borrowers with significant retirement account balances, the 70% eligibility factor means each retirement dollar produces less qualifying income than a taxable dollar:

$1M taxable brokerage: $1,000,000 ÷ 84 = $11,905/month.
$1M IRA: $700,000 ÷ 84 = $8,333/month.

Frequently Asked Questions

Do I have to actually use my assets to pay the mortgage?

What if my portfolio grows during the loan term?

Can I include joint assets with my spouse?

Yes — assets jointly held are fully eligible. Assets in the co-borrower’s name alone require the co-borrower to be on the loan application.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

The Four-Step Calculation: Quick Reference

The reverse calculation (most useful for planning):
Target PITIA × 2 (50% DTI) × 84 = minimum eligible assets required.

$12,000 PITIA target × 2 × 84 = $2,016,000 in eligible assets needed.
$8,000 PITIA target × 2 × 84 = $1,344,000 needed.
$16,000 PITIA target × 2 × 84 = $2,688,000 needed.

This reverse calculation tells you immediately whether your asset level supports your purchase target — before any formal application.

The Combination Strategy: Assets + Income

Asset utilization qualifying income can be combined with ANY documented income source:

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Summary: The Asset Utilization Income Calculation at a Glance

Get Your Asset Utilization Income Calculated Today — 15 Minutes.

Go Deeper

Asset Utilization Mortgage: The Complete Guide

See What Your Assets Qualify You For

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Step 1: Identify All Eligible Liquid Assets

Step 2: Subtract Down Payment and Closing Costs

The funds being deployed for the down payment and closing costs are not available to sustain future mortgage payments. They must be excluded from qualifying assets.

Example:
Total liquid assets: $3,850,000.
Down payment needed (20% of $1,600,000 purchase): $320,000.
Estimated closing costs: $40,000.
Available qualifying assets: $3,490,000.

This is a common calculation error — many borrowers assume their full portfolio qualifies. The deployed funds (down payment + closing costs) are excluded first.

Step 3: Apply Eligibility Factors

Taxable accounts (100%):
$2,400,000 brokerage account × 100% = $2,400,000 eligible.

Retirement accounts (70%):
$680,000 IRA × 70% = $476,000 eligible.
$340,000 401(k) × 70% = $238,000 eligible.

Cash accounts (100%):
$70,000 savings × 100% = $70,000 eligible.

Total eligible after all factors: $3,184,000.

Step 4: Divide by 84

$3,184,000 ÷ 84 = $37,905/month qualifying income.

At 50% DTI: maximum PITIA = $18,952/month.
At 8.25% on $1,600,000 loan: P&I = $12,026/month + taxes/insurance = estimated $14,500–$16,000/month total PITIA. Comfortable.

Seven Complete Calculation Examples

This is the useful reverse calculation: given a target PITIA, what is the minimum asset level needed?

The Retirement Account Optimization Decision

For borrowers with significant retirement account balances, the 70% eligibility factor means each retirement dollar produces less qualifying income than a taxable dollar:

$1M taxable brokerage: $1,000,000 ÷ 84 = $11,905/month.
$1M IRA: $700,000 ÷ 84 = $8,333/month.

Frequently Asked Questions

Do I have to actually use my assets to pay the mortgage?

What if my portfolio grows during the loan term?

Can I include joint assets with my spouse?

Yes — assets jointly held are fully eligible. Assets in the co-borrower’s name alone require the co-borrower to be on the loan application.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

The Four-Step Calculation: Quick Reference

The reverse calculation (most useful for planning):
Target PITIA × 2 (50% DTI) × 84 = minimum eligible assets required.

$12,000 PITIA target × 2 × 84 = $2,016,000 in eligible assets needed.
$8,000 PITIA target × 2 × 84 = $1,344,000 needed.
$16,000 PITIA target × 2 × 84 = $2,688,000 needed.

This reverse calculation tells you immediately whether your asset level supports your purchase target — before any formal application.

The Combination Strategy: Assets + Income

Asset utilization qualifying income can be combined with ANY documented income source:

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Summary: The Asset Utilization Income Calculation at a Glance

Reverse calculation: target monthly PITIA × 2 × 84 = minimum eligible assets needed.

The reverse calculation (most useful for planning):
Target PITIA × 2 (50% DTI) × 84 = minimum eligible assets required.

$12,000 PITIA target × 2 × 84 = $2,016,000 in eligible assets needed.
$8,000 PITIA target × 2 × 84 = $1,344,000 needed.
$16,000 PITIA target × 2 × 84 = $2,688,000 needed.

This reverse calculation tells you immediately whether your asset level supports your purchase target — before any formal application.

The Combination Strategy: Assets + Income

Asset utilization qualifying income can be combined with ANY documented income source:

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Summary: The Asset Utilization Income Calculation at a Glance

Reverse calculation: target monthly PITIA × 2 × 84 = minimum eligible assets needed.

Last reviewed: May 4, 2026 by Aiden Marsh. For current rates, programs, or guideline questions, request a Clear Approval.

How Is Asset Utilization Income Calculated for a Mortgage?