Asset-Based Loans for Real Estate Investors
Qualify Using Your Assets — Not Employment Income. Asset-Based Loans allow borrowers to qualify using liquid assets instead of traditional income documentation.
What Is an Asset-Based Loan?
An Asset-Based Loan (also called Asset Depletion Loan) is a mortgage program that uses your verified liquid assets to calculate qualifying income.
Instead of reviewing employment income, lenders calculate a monthly income based on your:
- Checking and savings accounts
- Stocks and bonds
- Retirement accounts (IRA, 401k)
- Money market accounts
- Trust accounts
Your total eligible assets are divided over a set term to determine your qualifying income.
How an Asset-Based Loan Works
Here’s a simplified example:
- Total eligible assets are verified.
- A portion of retirement accounts may be discounted.
- Assets are divided by a set number of months (often 60–360 months depending on program).
- The resulting figure is used as your monthly qualifying income.
This approach benefits borrowers with strong reserves but inconsistent income streams.
Key Features of Asset-Based Loans
No tax returns required
No W2s required.
No employment verification required
There is no need to verify 2 years of employment history.
Use liquid assets to qualify
Lending is based solely on your liquid assets
Available for purchase or refinance
Can be used to purchase or refinance a property.
Available for primary, second, and investment properties
Can be used for primary mortgage loan, a second home or investment property.
Cash-out refinance allowed
You can also take cash out of the equity of the property.
Who Is an Asset-Based Loan Best For?
Retirees
Borrowers living off investments rather than employment income.
High-Net-Worth Individuals
Those with strong liquidity but complex or variable income streams.
Trust Fund Beneficiaries
Living off trust distributions? Your assets can qualify you.
Self-Employed Borrowers
Individuals whose tax returns may not reflect true earning power.
Investors
Borrowers who prefer to leverage assets for qualification flexibility.
Loan Terms & Options
Loan amounts | up to $3,000,000+ |
LTV Limits | Up to 90% LTV for purchases; up to 80% for cash-out refinances. |
Product Types | 30-year fixed-rate and various ARM options |
Occupancy | Primary residences and second homes. |
Eligible Property Types
- Primary residences
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- Second homes
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- Investment properties
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- Single-family homes
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- 2–4 unit properties
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- Condos and townhomes
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Advantages
Advantages
- Flexible qualification - Use wealth instead of income documentation.
- Preserve tax strategy - Avoid changing write-offs just to qualify for financing.
- Financing without traditional income - Ideal for borrowers in transition, retirement, or entrepreneurial roles.
Considerations
- Larger asset reserves are required
- Interest rates may be slightly higher than conventional loans
- Retirement accounts may be discounted
- Program guidelines vary by lender
Why Work With MMC Lending
We specialize in alternative income documentation programs designed for complex financial profiles.
Experienced loan advisors
We specialize in Asset-Based Loans
Fast Pre-Approvals
Streamlined approval process
Personalized Strategy
Clear asset calculation guidance
Ready to Get Started?
Take the first step toward your Asset-Based Loans. Our experienced loan officers are here to guide you through every step.