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Brought to you by 7th Level Mortgage LLCApply Now Qualification using assets
Asset-based programs may help borrowers with substantial eligible assets but limited recurring employment income. The calculation and eligible asset treatment vary significantly.
Asset depletion generally converts a portion of eligible assets into a monthly qualifying-income amount over a program-defined period. An asset-qualifier approach may instead compare eligible assets with the requested loan and required obligations without using a standard income calculation. The labels are not interchangeable.
Verify ownership, access, source and thirty-day seasoning. Eligible cash and taxable investments can be counted at the permitted percentage; vested retirement assets are discounted. Gifts, refinance proceeds, restricted or unvested securities, and assets already producing income counted elsewhere are not eligible for depletion. Business accounts have separate ownership rules.
Express requires eligible assets of at least the lesser of $500,000 or the subject loan amount; Prime uses the lesser of $1 million or the loan amount. Subtract the down payment and out-of-pocket closing costs before calculating monthly income. Express divides by sixty months; Prime permits sixty or eighty-four months. Depletion and supplemental Asset Assist have different eligibility and reserve treatment; confirm the selected method.
List asset categories, approximate balances, ownership, vesting and accessibility; identify funds needed for closing and reserves; and provide estimated credit range, housing history, property use, price or value and requested loan amount. Never enter account numbers or upload statements to the public Finder.
Double-counting assets, using ineligible business funds, ignoring taxes or withdrawal restrictions, failing to subtract closing funds and market volatility can materially change qualification. Consider liquidity, retirement and tax consequences with appropriate advisers. Current written program guidelines and full underwriting control.
Frequently asked questions
Not necessarily. Programs may calculate income or qualification from eligible assets, but required funds, discounts, seasoning and reserve treatment vary.
Some retirement assets may be considered with program-specific treatment. Accessibility, taxes, penalties and the borrower's age can affect the calculation.
General information is useful. A mortgage professional can help you evaluate the facts that apply to you.
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