Asset Based Mortgage Loan Programs
One type of Non-QM loan program is the asset depletion or asset utilization mortgage loan program. This type of loan allows borrowers to use their assets to qualify for a mortgage loan. The lender calculates the borrower's income based on their assets, instead of their traditional income sources like employment or self-employment.
Asset Based Mortgage Loan Highlights
Asset utilization programs allow borrowers to use their assets, such as investments, savings, and retirement accounts, to qualify for a mortgage. Lenders will typically look at the borrower's overall financial picture, including their income and assets, to determine whether they qualify for the loan.
These programs may be available for various property types, including primary residences, second homes, and investment properties.
The maximum loan-to-value (LTV) ratio for these programs may vary depending on the lender and the borrower's financial profile. However, borrowers can generally expect a maximum LTV of around 80% for primary residences and 75% for second homes and investment properties.
Borrowers should be aware that non-QM loans may come with higher interest rates and fees compared to traditional conforming loans. This is because these loans are considered riskier due to the relaxed underwriting standards.
It's important for borrowers to shop around and compare offers from multiple lenders to find the best terms and rates for their asset utilization mortgage loan.
Overall, borrowers considering a non-QM asset utilization mortgage loan program should have a good understanding of their financial situation, including their assets and liabilities, and be prepared to provide detailed documentation to the lender to demonstrate their ability to repay the loan.
Non-QM Loan Program Terms:
- Up to 90% LTV Purchase with No MI
- Up to 80% LTV Cash Out
- 599 Min FICO
- Self Employed Programs: 1099, Bank Statements, P&L
- 30 Year Fixed & 40 Year Interest Only Available
- Up to $3M Loan Amount
- 1-4 Units, Condos, Manufactured Homes, Rural
- Up to 55% DTI