Not all borrowers have traditional means of employment or income. There are many people who may fit into non-traditional income categories such as:

• Borrowers that have accumulated assets over the years and plan on using those funds to cover all or part of their housing payment each month 
• A borrower with little to no income but significant assets 
• A borrower who is retired or soon to be retired 

If any of these apply to you and you have significant assets such as savings, investments, or retirement accounts you may qualify for our Asset Depletion Loan Program.

What is an Asset Depletion Loan?

Asset depletion loans are a type of mortgage program that uses the value of the borrower’s liquid assets instead of traditional monthly income to qualify for the mortgage. This can be a beneficial option for retirees or individuals with significant assets but little income as we noted above.

Eligible Assets for Mortgage Qualifying

• Checking/Savings accounts, Money Markets, Certificate of Deposit (CD)
• Investment accounts with stocks, bonds, mutual funds, ETFs
• 401(k), IRA, SEP, KEOGH may be considered depending on borrower’s age and any penalty applied for accessing funds in account

Asset Depletion Mortgage Requirements

• This program is available to borrowers aged 62 or older  
• Mortgage is secured by a 1-or 2-Unit Primary Residence or Second Home
• Purchase or No Cash Out Refinance
• Maximum Loan to Value 80% or 20% Down
• Min FICO 620
• Qualifications Based on Verified Liquid Assets*

THE FINE PRINT

• Borrowers must provide current and past monthly account statements, along with standard personal financial documents (e.g., tax returns, pay stubs if applicable), to demonstrate proof of assets.
• Gift/Borrowed funds allowed
• *Assets must be within the United States

Should You Consider an Asset Depletion Mortgage?

If you’re wondering whether or not you would qualify for an asset depletion program we can help!

Start by answering these questions:

1. Are you retired with very little fixed income (or no income)?
2. Are your assets held in the U.S.?
3. Do you have 20% for a down payment?
4. Are you someone who has little to no income but significant assets?
5. Are you 62 years or older?

If you answered yes to any of these questions, and have a significant amount of assets, an asset depletion loan may be an ideal solution for you.

Bottom Line: 

If you would like more information on the Asset Depletion Loan Program click here or give us a call today to see if you qualify. Our dedicated team is eager to help determine if you qualify, and we are committed to supporting you in achieving your homeownership goals. The Asset Depletion Loan could be the perfect solution you've been searching for!