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.