Asset Depletion is a method of calculating income based on the borrower’s liquid assets. This includes Employment-related assets such as lump sum distributions, 401K, IRA, SEP, Keogh accounts, stocks, bonds, and mutual funds. By leveraging these assets, borrowers can demonstrate their ability to repay a mortgage without relying on conventional income documentation.
Asset Depletion Guidelines
For those considering an Asset Depletion program, here are the key points to keep in mind:
– The maximum Loan-to-Value (LTV) ratio is 70%, applicable for purchase and rate/term refinance transactions.
– The program is available for primary or secondary residences only.
– Borrowers must be the sole owners of the account, with no exceptions allowed.
– A minimum FICO score of 620 is required.
– Only 60% of the face value of the assets can be used, divided by the term of the loan.
Other Investor Asset Depletion Guidelines
This investor offers a slightly different approach to Asset Depletion with the following criteria:
– Borrowers can use 100% of the face value of these assets, but they must be at least 62 years old by the closing date.
– The asset value is divided by 240 months, regardless of the actual loan term.
– Borrowers must be the sole owners of the account.
– The maximum LTV is 80% for primary 1- and 2-unit properties and secondary residences.
– The program is limited to purchase and rate/term refinance transactions.
– A minimum FICO score of 620 is required.
Whether you’re a retiree with substantial savings or an individual with significant investment holdings, we are here to guide you through the mortgage process with expertise and personalized service. Explore the possibilities of an asset depletion mortgage program.
