When monthly income is the wrong lens
Plenty of financially strong borrowers have modest documented monthly income: retirees drawing selectively, founders between liquidity events, and people whose returns swing year to year. A conventional review reads those files narrowly.
Asset-based documentation reframes the question from what arrived last month to what is actually held and available.
How the calculation is usually approached
- Eligible accounts are identified and documented
- Certain balances may be discounted depending on account type and volatility
- The eligible total is divided over a defined period to produce a monthly figure
- That figure is used alongside, or instead of, other documented income
What it is not
It is not a pledge of your assets, it is not a securities-backed line of credit, and it is not a stated-income loan. The accounts are documented and verified like any other part of the file.
Who this tends to fit
- Retirees with substantial documented holdings and modest drawn income
- Borrowers between liquidity events or with irregular annual income
- Buyers of California second homes funded largely from investments
- Scenarios where blending asset documentation with other income reads better
Tradeoffs to weigh
- Not every account type counts, and some are discounted in the calculation
- Seasoning and sourcing requirements apply to the accounts reviewed
- Program availability and terms vary by lender
- Market movement in reviewed accounts can affect the figures during the process
Documents commonly reviewed
- Recent statements for savings, brokerage, and eligible retirement accounts
- Documentation of how larger balances were sourced
- Any other income you would like considered alongside the assets
- Property details and, for a purchase, the contract
Nothing on this page is a credit decision or an offer of credit. Program availability, terms, and eligibility are determined by the lender after a complete review.