Have substantial assets but your taxable income doesn’t tell the whole story? An asset utilization mortgage may offer another way to qualify.
Asset utilization programs can convert eligible assets into calculated qualifying income for mortgage purposes. This can be useful when a borrower has substantial assets but limited traditional employment or taxable income.
Asset utilization is one of several Non-QM loan options, and it’s closely related to asset depletion loans.
Not a guarantee of qualification — lenders still review credit, assets, the property and the down payment.
Each lender uses its own calculation. There’s no single formula that applies to every program.
Depending on the program, eligible assets may include certain:
Eligibility, haircuts, seasoning, accessibility and calculation methods vary by lender and program.
If you know approximately how much you have in eligible assets, the purchase price and your planned down payment, I can quickly determine whether asset utilization is worth exploring.
I’ll take a look at your scenario and come back to you personally with the options worth exploring and what I’d need to confirm them. If you’d rather talk sooner, text me at 323.823.7913.
A Non-QM loan that may use eligible assets to calculate a qualifying monthly income, for borrowers whose employment or taxable income doesn’t reflect their overall financial strength.
The two terms are often used interchangeably. Both describe programs that calculate qualifying income from eligible assets, and the exact method depends on the lender. More on asset depletion loans.
No. The calculation is used to establish a qualifying income figure; it doesn’t require you to withdraw or sell your assets. Lenders do verify the assets and may have requirements about how they’re held and accessed.
Depending on the program, certain retirement assets may be considered, often at a reduced value. Eligibility and treatment vary by lender.
Some programs allow calculated asset income to be combined with other eligible income. Whether that’s permitted depends on the program.
No. Sending your scenario through this page doesn’t pull your credit, and there’s no obligation.