Asset Depletion Programs

Program Overview

Asset Depletion Programs allow borrowers to qualify for a mortgage using their liquid assets rather than traditional income. This program is designed for retirees, business owners, and those with significant assets but limited traditional income documentation.

How It Works

Instead of using traditional income sources like W-2s or business income, this program calculates your qualifying income based on your liquid assets. The lender determines how much monthly income your assets could generate over a specified period (typically 60-84 months).

Key Benefits

• No Traditional Income Required: Qualify based on your assets
• Higher Loan Amounts: Often qualify for larger loans than traditional programs
• Flexible Documentation: Simplified income verification process
• Competitive Rates: Rates comparable to conventional loans
• Fast Processing: Streamlined underwriting process

Program Requirements

Credit Requirements

• Minimum Credit Score: 680
• Credit History: Good credit history required
• Credit Inquiries: Limited recent inquiries preferred
• Payment History: No recent late payments

Asset Requirements

• Liquid Assets: Minimum 60-84 months of mortgage payments in liquid assets
• Asset Types: Cash, stocks, bonds, retirement accounts, CDs
• Asset Seasoning: Assets must be seasoned for 2-3 months
• Asset Verification: Bank statements and investment account statements required

Property Requirements

• Property Types: Single-family, condos, townhomes, multi-unit (up to 4 units)
• Occupancy: Primary residence, second home, or investment property
• Location: All 50 states
• Property Value: No maximum limit

Down Payment Requirements

• Minimum Down Payment: 20%
• Source of Funds: Must be properly documented and seasoned
• Gift Funds: Allowed with proper documentation
• Asset Verification: Down payment source must be verified

What to Expect

Step 1: Asset Review

We'll review your liquid assets and determine if you have sufficient assets to qualify for the desired loan amount. This includes analyzing your asset types, values, and seasoning.

Step 2: Income Calculation

We'll calculate your monthly qualifying income based on asset depletion. This typically involves dividing your liquid assets by 60-84 months to determine monthly income.

Step 3: Application Process

Complete the mortgage application using your calculated asset-based income. The process is streamlined since we're focusing on asset verification rather than traditional income.

Step 4: Underwriting Review

Our specialized underwriters review your file with a focus on asset verification and income calculation. The process typically takes 2-3 weeks.

Step 5: Approval & Closing

Once approved, you'll proceed to closing with minimal additional documentation requirements.

Who This Program Helps

• Retirees with significant retirement assets
• High-net-worth individuals with substantial liquid assets
• Those with irregular income but significant assets
• Asset-rich, income-poor borrowers
• Investors with substantial investment portfolios

This program is perfect for borrowers who have significant assets but may not have traditional income streams to qualify for a mortgage.