Asset Based Loan Program



Looking to purchase a new home as a recent retiree with no history of receiving retirement income from your portfolio? What about someone who wants to purchase a home, but recently started their own company so there is no history of income from their business?

An asset based loan program might be just the thing you need.

Here are the details on how assets can replace monthly income when qualifying to purchase or refinance a home:

– Combine all forms of retirement assets into one lump sum. Retirement funds from an IRA, 401k, SEP and/or Keogh can be used so long as the borrower can withdraw assets from these accounts without penalty.
– Take 70% of the balance of those combined accounts.
– Finally, divided out the reduced balance by 360, and use that figure for a monthly income to qualify for a mortgage.

Example: A borrower has a total of $600,000 in qualifying retirement assets. Taking 70% of that balance, the figure to use for qualifying purposes is $420,000. Divide that number by 360, and the monthly income to be used on a mortgage application is $1,167.

There is no need to document currently receiving retirement income or a need to show a three year continuance. The asset based income can be combined with social security and other qualifying income for the loan. To get started, borrowers also need a 620+ credit score and a minimum of a 30% down payment/equity in the home. This loan program can be used to purchase or refinance a home (rate term refinance only; cash out refinances are currently unavailable for this program).

To learn more about qualifying for a mortgage from assets OR to get started on a loan application, contact me today. I’d be happy to help you get started.


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One Response to “Asset Based Loan Program”

  1. Loan Prequalification – Income | The Mortgage Blog Says:

    […] different guidelines. Some of these, such as investment and retirement income, could have their own loan program. When planning to use income from a source other than current employment, definitely let your […]

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