The Asset Utilization mortgage program is designed specifically for asset-rich clients who want to leverage their financial resources to secure a mortgage.
Program Highlights
Our Asset Utilization program offers flexible and accommodating terms to help you achieve mortgage financing for a purchase or a refinance.
– Up to 80% LTV for Purchase/Rate and Term: Whether you’re buying a new home or refinancing your current mortgage, you can borrow up to 80% of the property’s value.
– Up to 75% LTV for Cash-out Refinance: Need to access your home’s equity? Our program allows you to refinance and take cash out with up to 75% LTV.
– Asset Seasoning Requirement: To ensure stability, assets must be seasoned for a minimum of three months.
– Minimum FICO Score of 600: We cater to a wide range of credit profiles, with a minimum FICO score requirement of just 600.
– Flexible Property Options: Whether it’s an owner-occupied home, a second home, or an investment property, our program has you covered.
Qualifying with Assets
Our program allows you to qualify using just your assets, or you can supplement with one or two years of full documentation, bank statements, verification of employment (VOE), 1099 forms, or profit and loss statements (P&L). This flexibility ensures that you can present your financial situation in the most favorable light.
Eligible Liquid Assets
We consider a variety of liquid assets, including:
– Cash on hand
– Savings and checking accounts
– Stocks, bonds, and mutual funds
– Vested amounts in retirement accounts
– Money market accounts
How to Calculate Asset Utilization
One of the unique features of our program is the asset depletion calculation, which allows us to convert your assets into qualifying income. Here’s how it works:
1. Identify Qualified Assets: Determine the total amount of your eligible liquid assets.
2. Divide by 60 Months: To calculate the monthly income equivalent, divide the total qualified assets by 60 months.
Example Calculation
Let’s say you have $300,000 in qualified assets. By dividing this amount by 60 months, we calculate an additional monthly income of $5,000. This figure can significantly enhance your borrowing capacity and help you qualify for the mortgage you need.
Contact us for information about asset utilization sometimes called the asset depletion mortgage program, one of our experienced mortgage loan officers would be happy to talk about your scenarios.
