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The Essential Documents You’ll (Probably) Need for an Asset Mortgage

This article will explain the important documents you’ll need if you want to use an asset mortgage on your next home purchase. 

There are many ways to qualify for a mortgage loan. You can, like most people, use your income. But if you have an irregular or unique source of income, you might base a loan on your assets.

Utilizing a form of lending called an “asset mortgage” or “asset loan,” you could qualify with property you already own. But you’ll need a variety of documents to complete the transaction.

Who Uses Asset Loans?

People from all walks of life, from all different areas of the country, and from all types of careers use asset loans. However, they are particularly useful for three types of people…

Property Investors

Property investors often own millions of dollars in real estate. However, they may not have a regular source of income, and their net worth may not be “liquid.” However, they can still use their assets to qualify for lending.


Before retiring, retirees had a consistent income. Now their income is reduced, but they likely have a high net worth, which often consists of savings accounts, property, and real estate. With these assets, retirees can improve their borrowing potential.

People with High Net Worth

Even if you have a high income, it may be worthwhile to use your assets. If you have a high net worth that is largely locked into non-liquid property, such as real estate and investment accounts, an asset mortgage could be perfect.

Required Documents for an Asset Mortgage

Account Statements

When using financial accounts for your mortgage, you’ll need to provide statements that display the total amounts currently in these accounts. Basic account information, which is usually provided by the financial institution, should be given to you on a regular basis. However, you may need to request updated information that can be provided to the lender.

You’ll need statements for all accounts you want to use on the asset mortgage, including 401(k), mutual finds, Roth IRAs, and other investment accounts of any kind.

Joint Account Letter

If you are using an account that is in two people’s names, and the other person is not listed on the mortgage, you’ll need to provide a signed document from the other party that allows the account to be listed on the loan.

The exact wording on this letter may depend on the specifics of the mortgage, so talk with your lender about how the letter should be drafted. In most cases, it will simply state the person’s name, the account number, and a statement that the account can be used for a home loan.

Proof of Account Liquidation

If you are going to liquidate (turn to cash) any portion of the accounts and use that capital for a downpayment or other expenses, you’ll need to provide proof liquidation.

For example, if you are going to borrow funds from your 401(k), you will need a document showing the funds going directly into your checking or savings account. Another example would be selling stocks to pay for the downpayment. In this case you’d likely need a document for the sale of these stocks.

To use valuables like jewelry on your asset mortgage, you’ll likely need a professional appraisal.

Appraisals of Property

Some homebuyers will use physical assets to boost their borrowing power on an asset mortgage. Any number of assets can be listed, including jewelry, machinery, and artwork. To use these assets, however, you’ll have to bring an appraisal of the items to your lender.

You can’t simply state a value; you have to provide evidence with an official appraisal. In many case, this means you’ll have to order an appraisal. Make sure this is done in advance, as there could be a long wait before an appraiser can see your items.

CPA Letter (If Using Business Assets)

If you are self-employed professional or a business owner of any type, and you plan to use finds from the business for closing, you’ll need to bring a letter from your CPA. This letter should indicate that the withdrawal of the funds won’t harm the business. Basically, it should state that taking out the money won’t ruin your company.

Bank Statements

Besides the unique documents, documents that you’ll need specifically for an asset loan, you’ll also need information that virtually all borrowers must provide. This can include bank statements, which are useful documents that indicate how much you have in savings. These documents also outline your overall expenses and income, making them a useful source of information.

Income Information (W2s, 1099s, Etc)

If you have documents used to verify your tax withholdings and earnings (and you should), you’ll need to provide these documents to the lender. While they may not be needed, documents like W2s and 1099s can verify your income and provide supporting information on your earnings.

If you work as an employee, you should receive a W2 from your employer. This document, which is also sent to the IRS, tells how much you have earned from the company and how much as been withheld in taxes.

If you work as a general contractor, you should have 1099 documents from all of your clients. These serve a similar function, telling the IRS how much you earn so they can calculate your tax obligations.

Tax Returns

The tax returns are slightly different; they are simply a statement of your tax obligation and a final document on the past year’s income and taxes. Although there will be a lot of repeat information, your lender will likely request two years of tax returns.

With these documents, the lender should have more than enough information to complete the loan application. However, the lender may still request certain documents, including repeat or updated information, to complete your asset loan.

Work with a Team That Understands the Mortgage Industry

If you are looking for an asset loan to purchase a home in San Diego, California, or one of the many states were serve*, contact our team today. We have the knowledge and experience to help you complete an application so you can make the right choice for your future!

*Although we serve California and many other states, we do not serve all states. Contact our team for location eligibility.