Asset Qualification / Asset Depletion
Have clients who want to leverage their assets such as savings or stock investments to qualify for a loan? Logan’s Asset Qualification Loan uses your Client’s Liquid Assets to qualify for a mortgage. Borrowers simply take their assets and divide them by 60 months. Check with your Logan representative to discuss what assets qualify for this loan.
- Max Loan Amount $3 million
- Assets divided by 60 months
- Min 660 Credit Score
- Cash in hand Unlimited
- First Time Home Buyer OK – No Restriction
- Up to 85% LTV Rate/Term
- Gift Funds Allowed, No Borrower Minimum
- Primary & 2nd Homes Only
- Interest-Only Options Available
- Max 6 loans or $5M – which ever comes first
Overview:
Asset Qualification, or Asset Depletion Loans, are for borrowers who do not have or may not have any monthly or yearly income, however hold large amounts of liquid assets. A qualifying income amount is derived by taking the assets that they have and dividing them by 60 months to get a monthly income amount.
The borrower needs to have 110% of the loan amount in assets to use the 60 month depletion rate otherwise the depletion rate would be 180 months
This program can be used for primary second and Investment homes. It can be used for single-family, one to four units, condominiums, and non-warrantable condominiums.
Borrower must have the asset for at least 60 days prior to the application date. Allowable assets are as follows. Bank accounts can be used 100% stock bonds. Mutual funds can be used at 70% of their value basted retirement accounts can be used at 70% of their value.
In eligible assets are as follows non-vested or restricted stock accounts, assets or funds held outside of the US cash on hand sweat equity grant funds, down payment, assistance programs, unsecured loans or cash advances in cryptocurrency
Gift funds are permitted for down payment and closing cost. Only no bar or minimum contribution is required. Gift of equity is permitted on primary residences.