Asset Based Florida Mortgage Lenders

Using Asset Utilization income type gives you a powerful alternative: qualifying your liquid assets—alone or combined with other income types.

Asset-Based Florida Mortgage Lenders

Asset-Based Florida Mortgage Lenders. Our asset-based Florida mortgage lenders qualify Florida mortgage applicants using liquid assets. No employment income is required to determine repayment ability. Borrowers qualify based on the assets they hold that meet seasoning requirements. This program is designed to help retirees, self-employed individuals, and other borrowers with seasoned assets to purchase or refinance. Assets must be personal and liquid. Examples include checking, savings, money market, investment, or retirement accounts.

• Checking/Savings/Money Market Accounts: 100% allowance
• Investment Accounts: 90% allowance
• Retirement Accounts: 80% allowance

Once you determine your total allowance, divide the balance by 60 months to determine qualifying income. No disbursement plans are needed. There are no minimum age requirements. You may combine as many accounts as you wish. For more information on asset-based mortgage loans, call Thomas Martin at 954-667-9110.

Qualifying Assets For Mortgage Income

Asset Depletion: Qualified assets with a utilization draw schedule of seven (7) years (Qualified Assets divided by 84). Asset Utilization: To determine residual income, Qualifying Assets are divided by eighty-four (84) months. From this number, subtract the Borrower’s total monthly debt obligation (total liabilities) to produce the Borrower’s residual income. Do not impute tax deductions when determining residual income. Residual income must meet or exceed Section 12.3 Residual Income.

Qualifying Assets:

o Net assets multiplied by the following percentages:
• 100% checking/savings/money accounts
• 80% of the remaining value of stocks/bonds / mutual funds
• 70% for all vested retirement assets
• For accounts with margin loans, only the margin amount that is available for withdrawal is allowe

Asset Depletion / Asset Utilization

Asset-based programs are designed to meet the Ability to Repay (ATR) requirements. This is accomplished by requiring debt to income (DTI) in the Asset Depletion program and the requirement of a residual income calculation in the Asset Utilization program. The unrestricted liquid assets can be comprised of stocks/bonds / mutual funds, vested amounts of retirement accounts and bank accounts. For Asset Depletion, the utilization of financial assets will be considered as Borrower income to qualify for their monthly payments. For asset utilization, financial assets will be utilized to calculate a borrower’s residual income.
A Borrower using Asset Depletion/Asset Utilization cannot use other sources of employment income.
o Nonemployment sources of income will be considered on a case-by-case basis

 Program Requirements

Asset Depletion/Utilization will be qualified under the Full Documentation Program Matrix, with restrictions outlined in the Product Matrix.
Reserves are not required for Borrower(s) qualifying with Asset Depletion/Asset Utilization programs.

Asset Depletion Requirements:

Borrowers must have a minimum of the lesser of:
o $1mm in Qualified Assets OR must have Qualifying Assets >= to 125% of the original loan amount
The minimum amount of qualified assets that a borrower must have is $450k

Asset Utilization Requirements:

o Borrowers must have a residual income greater than or equal to Residual Income
o Total post-closing assets must be >/= 125% of the original subject loan amount
o The minimum amount of qualified assets that a borrower must have is $450k

Not permitted:

o Non-Owner Occupied or Second Homes (see program Matrix for max LTV and program eligibility)
o Cash-Out
o Gift funds
o Business Assets
o Trust Assets
o Foreign Assets
o Non-Occupant Co-Borrower
o For accounts with margin loans, only the margin amount that is available for withdrawal is allowed

Asset Depletion Mortgage Lenders

Jumbo Asset Depletion mortgage lenders calculate the monthly income stream based on a borrower’s assets. Asset depletion can be utilized in any scenario, at any LTV, and with any product; however, asset depletion on loans to non-resident aliens requires additional review.

The Asset Depletion Calculation is based on the current value of the assets, amortized over 30 years or until the borrower turns 85, with a minimum of 10 years. For borrowers over the age of 85, a minimum of 5 years is applied. The prevailing interest rate is used (currently using 5%).
• Eligible assets should be held in a U.S. Bank;
• A minimum of $500,000 must be available for asset depletion;
• A minimum of 12 months PITIA in reserves is required;
• Assets must be liquid.
• Annuities and privately held stock are not eligible;
• Cash-out from a refinance is not eligible for Asset Depletion
• Retirement accounts are not eligible for depletion unless the borrower is at least 59 1/2 years of age; if the borrower meets the age requirement, then 100% of the current value of these assets may be used for depletion;
• Checking accounts, savings accounts, mutual funds, bonds, trusts, public stocks, CDs, and cash value of life insurance (in the borrower’s name or the name of the borrower’s trust) are eligible.
• 75% of the current value of Brokerage Funds (Public Stocks, Bonds, Mutual Funds, etc.) may be used for depletion;
• Asset depletion may not be used if gift funds are present;
• Borrower must be 100% owner of assets utilized;
• Business funds excluding assets in an operating account, may be utilized on an exception basis, if the borrower is 100% owner of the business and a signed letter from a CPA, accountant, or financial officer at the business stating that the borrower is authorized to use the funds, and that doing so does not adversely affect the business should also be obtained;
• For loans where asset depletion is the only source of qualifying income, further exploration of the borrower’s asset pattern is warranted; and

Assets currently being drawn on for monthly income in the form of monthly distributions, interest income, or dividend income can be utilized if the interest/dividend or other payment is not already being counted in the income calculation.
• Monies replenished as part of a cash recapture transaction cannot be used for asset depletion