Your borrower has $2 million in the bank and a 750 FICO. They're retired — no W-2, no pay stub, income on paper looks thin. BFF's Asset Utilization program converts liquid assets into qualifying income. Simple formula. No employment required.
Program at a Glance
Asset utilization is a Non-QM income calculation method that converts a borrower's liquid assets into a monthly qualifying income figure. The formula is straightforward: take the total eligible assets, divide by 60, and use the result as monthly income in the DTI calculation. No employment. No tax returns. No pay stubs. The borrower's balance sheet does the talking.
The entire program comes down to one calculation. Verify the assets, apply the formula, and you have a monthly income figure to run through DTI. No income history, no employment verification, no tax transcripts.
Asset Utilization Formula Eligible Assets Verified liquid assets ÷ 60 Fixed divisor = Monthly Income Used in DTI calculation $500,000 in Assets $500,000 ÷ 60 $8,333 / month qualifying income $1,200,000 in Assets $1,200,000 ÷ 60 $20,000 / month qualifying income $2,500,000 in Assets $2,500,000 ÷ 60 $41,667 / month qualifying income Important: Assets used in the calculation must remain available after closing. Down payment, closing costs, and required reserves are deducted first. Only the remaining eligible balance is divided by 60. The borrower cannot use the same dollars for both the down payment and the income calculation.
Not all assets qualify. The key distinction is liquidity and accessibility - assets the borrower can actually draw on without selling a business or triggering substantial penalties.
Key parameters from the BFF Asset Utilization Matrix. Download the PDF for complete guidelines before pricing any Asset Utilization scenario.
| Parameter | Requirement |
|---|---|
| Max Loan | $2,500,000 |
| Max LTV - Purchase | 80% (FICO and loan amount tiered - see matrix) |
| Max LTV - R&T Refi | 75% |
| Max LTV - Cash-Out | 70% |
| Min FICO | 680 |
| Income Formula | Eligible assets ÷ 60 = monthly qualifying income |
| Max DTI | 45% (against asset-derived income + any other documented income) |
| Asset Verification | 2 months most recent account statements for all eligible asset accounts |
| Retirement Accounts | Typically 70% of vested balance used to account for tax and early withdrawal penalties |
| Occupancy | Primary Residence · Second Home · Investment Property |
| Property Types | SFR · PUD · Warrantable & Non-Warrantable Condos · Condotels · 2-4 Unit |
| Non-Occupant Co-Borrower | Not allowed |
| Gift Funds | Allowed for down payment only · Not eligible for asset utilization calculation |
| Income Stacking | Asset utilization income may be combined with any other documented income (Social Security, pension, rental, W-2) |
| Employment | Not required |
| Tax Returns | Not required if qualifying solely on asset utilization |
| Key Rule | Assets used in the income calculation must remain available after closing. Down payment, closing costs, and required reserves are deducted from assets before the ÷60 is applied. |
No W-2, no employer. Pension and Social Security may not be enough to clear DTI. Substantial savings or investment portfolio converts to qualifying income without touching the funds.
Executives, founders, and investors who structure income for tax efficiency. On paper, income looks thin. The portfolio tells the real story.
Sold a company and sitting on proceeds. No current employment. Tax returns show prior business income that no longer exists. Liquid assets from the sale qualify them.
Borrowers living off brokerage distributions that don't hit a W-2. Asset utilization converts the portfolio balance to qualifying income without requiring distribution documentation.
FIRE borrowers (Financial Independence, Retire Early) who left the workforce in their 40s or 50s with significant savings but below traditional retirement income.
Beneficiaries with accessible trust assets or inherited accounts. Trust documentation confirms access; the balance qualifies the loan.
Eligible liquid assets are totaled after subtracting down payment, closing costs, and reserve requirements. The remaining balance is divided by 60 to produce a monthly qualifying income figure. For example, $1,500,000 in post-closing eligible assets ÷ 60 = $25,000 per month of qualifying income. That figure is then used in the DTI calculation alongside any other documented income the borrower has.
Eligible assets include checking and savings accounts, money market accounts, CDs, stocks, bonds, mutual funds, ETFs, and vested retirement accounts (typically at 70% of balance to account for potential withdrawal taxes and penalties). Trust assets accessible to the borrower without restriction are also eligible. Ineligible assets include cryptocurrency, non-vested stock options, RSUs, business accounts, and assets pledged as collateral elsewhere.
No. The borrower does not liquidate anything. The calculation is hypothetical — it converts the balance to a monthly income figure for qualification purposes only. The assets stay invested, stay in their accounts, and continue earning. The borrower just needs to verify they exist via 2 months of current account statements.
Yes. Asset utilization income can be stacked with any other documented income — Social Security, pension payments, rental income, part-time W-2 wages, investment distributions, or annuity payments. The combined monthly income total is what goes into the DTI calculation. This is especially useful for retirees who have modest pension income but need it supplemented to clear the 45% DTI threshold.
No. Employment is not required on asset utilization loans. If the borrower is qualifying solely on assets, no employer, no pay stubs, and no tax returns are needed. The asset verification (2 months of statements) replaces all employment and income documentation. This is one of the few Non-QM programs specifically designed for borrowers with zero current employment.
BFF Asset Utilization Matrix — Rev. Feb 2026
Asset utilization income can be combined with any other documented income. A retiree with a $3,000/month pension plus $1.5M in savings gets $25,000/month from assets — a combined $28,000/month to run through DTI.
Non-QM decisions typically within 48 hours of a complete file. Check current turn times before locking.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
