Yes, in some cases. Fannie Mae lets lenders turn certain retirement and job-related assets, like a 401(k) or IRA you can fully access, into monthly income. The lender subtracts any early-withdrawal penalty and the money you need for the down payment, closing costs, and reserves. Then it divides what is left by the loan term in months, such as 360 for a 30-year loan. The loan can be up to 70% of the home's value, or 80% if the owner of the assets is 62 or older. Many non-QM lenders offer asset depletion loans that count more kinds of assets, and terms vary by lender.
This helps people with strong savings but low monthly income, like retirees moving to Franklin or Brentwood, or people between jobs. It is a different way to show you can pay.
| Rule | Fannie Mae (employment-related assets) |
|---|---|
| Eligible assets | 401(k), IRA, SEP, Keogh with full access; lump-sum retirement or severance payouts |
| Not eligible | Regular checking or savings (unless from those payouts), stock options, inheritance, home-sale money, virtual currency |
| Max loan-to-value | 70%, or 80% if the asset owner is 62 or older |
| Loan purpose | Purchase or limited cash-out refinance |
| Home type | Primary residence or second home |
| Step | Amount |
|---|---|
| IRA balance | $500,000 |
| Minus a 10% early-withdrawal penalty | − $50,000 |
| Minus down payment, closing costs, and reserves | − $100,000 |
| Net documented assets | $350,000 |
| Divided by 360 months | $972.22 a month of qualifying income |
Many non-QM lenders offer "asset depletion" or "asset utilization" loans. They typically count a wider range of assets, like brokerage accounts. Some divide by a shorter time period, which gives more monthly income. Each lender sets its own math.
Terms vary by lender. Non-QM loans are not set by a government agency. Each lender writes its own rules for credit, down payment, rates, and paperwork, and those rules change often. Always ask for the lender’s current guidelines in writing.
Sometimes. Fannie Mae can count certain retirement assets as income. Many non-QM lenders also offer asset-based loans.
It subtracts any penalty and the cash you need to close, then divides the rest by the loan term in months.
For Fannie Mae, generally not, unless the money came from a retirement payout or severance. Many non-QM programs count more types of assets.
Under Fannie Mae's rule, up to 70% of the home's value, or 80% if the asset owner is 62 or older.
Not under Fannie Mae's rule. It is for a primary residence or second home. Some non-QM lenders allow investment properties.
No. The lender uses the balance to figure income. You keep managing your account.
Have strong savings but income that doesn't tell the whole story? Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Checked October 11, 2026. The example is from Fannie Mae's Selling Guide. Non-QM asset programs are set by each lender. This is not a loan offer.
