for Every Homebuyer
Asset Depletion Loans
For high net worth homebuyers with income history and/or documentation that does not satisfy strict guidelines for traditional mortgages, or with no income at all, an asset depletion mortgage may be an excellent alternative. Whether you want to avoid liquidating high-yield investments, want to retain a healthy emergency reserve, or retain cash on hand to jump on great future investing opportunities should they arise, there are plenty of reasons to opt for home financing over a cash purchase. Asset depletion loans turn your qualifying assets into qualifying income, avoiding the need for income documentation. And while non-QM asset depletion mortgages are strong in their own right, we may even be able to get you QM, conventional-like rates for your asset-only loan.
Asset depletion loans, sometimes referred to as asset-only loans, are mortgage loans that either allow you to qualify for mortgage financing without using any personal income, or can supplement existing and documentable personal income with additional, asset-derived income. Common qualifying assets include saving/checking accounts, money market funds, stocks, bonds, mutual funds, and vested retirement accounts (401k, IRA, etc.).
Let's take a closer look at this program:
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Typically 15%-20% Down Minimum (Can be as low as 5% Down)
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Up to $10MM Maximum Loan Amounts
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Cash or Cash Equivalent Assets Can Qualify
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Can be Used for Primary, Second, or Investment Properties
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Can be Used for Purchase, R/T Refinance, or Cash Out Refinance
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Can Qualify for Conventional-Like Low Rates Even With Asset-Only
When financing asset-only or asset supplemented mortgages, the lender takes on more risk, which may result in rates that are higher than loans that stay within the boundaries of QM guidelines. But for those who wish to avoid liquidating investments or losing liquid assets to a home purchase, asset-depletion financing is a powerful tool. We can potentially even get you into a prime loan with low, conventional rates, an exceedingly rare situation for asset-only loans. You will not even need 100% of the home's purchase price in assets, and can use as low as 5% down. We have the best asset-depletion stated income mortgage program on the market guaranteed.
Got Docs?
Getting Prepped for Approval
Documentation requirements for asset depletion loans are generally similar to QM, conventional or government loans save income documentation. Rather than income being heavily vetted, your qualifying assets will be analyzed instead. FICO score, appraisal, LTV, DTI, and other requirements will still apply.
When lending large sums of money, mortgage lenders will demand strict vetting of a borrower's credit health and ability to repay. To see what documents you'll need for mortgage loans, check out our prior to approval checklist page.