An asset qualifier loan lets you qualify with your savings instead of your income. If your eligible assets are large enough to cover the loan, some lenders do not need an income figure at all. Lenders often call this "ATR in full," which means your assets fully show your ability to repay.
Who it fits
- Retirees with savings but little monthly income.
- People who just sold a business or a property.
- People who live off investments.
- Buyers between jobs who have strong savings.
How it works
The lender adds up your eligible assets. Then it compares that total with the loan amount and the cash you need to close. If the assets are enough, you can qualify without pay stubs, tax returns or a debt to income ratio.
Lenders set their own rules on which assets count. Cash in the bank usually counts in full. Stocks, bonds and retirement accounts may count at a reduced share, because their value can change and some carry taxes or penalties when you withdraw. Money you use for the down payment and closing costs usually does not count toward the total.
Asset qualifier or asset depletion?
Both use your savings, but in different ways. Asset depletion turns your assets into a monthly income figure, then uses the usual debt to income math. An asset qualifier loan skips the income math when your assets cover the loan. If your savings are large compared with the loan, the asset qualifier can be simpler. If they are smaller, asset depletion may still work.
What to gather
- Recent statements for every account you want to use.
- Proof of where any large recent deposits came from.
- Your ID and the purchase contract or property details.
The trade off
Like other non QM loans, these usually cost more than a conventional loan and may need a larger down payment. If your income already qualifies for a standard loan, that is usually cheaper. I check both before you choose.
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Common questions
What does ATR in full mean?
ATR stands for ability to repay. "ATR in full" means your eligible assets alone show you can repay the loan, so the lender does not need an income figure.
Do retirement accounts count?
Often yes, but usually at a reduced share of the balance, because withdrawals can carry taxes or penalties. Each lender sets its own rules.
Do I need to show income at all?
With an asset qualifier loan, usually no, as long as your eligible assets cover the loan. You still need to show where the money came from.