Asset Utilization

If your income comes from non-traditional sources, such as self-employment or retirement, and the majority of your actual savings is in assets you own rather than in your job income, you may have trouble qualifying for a traditional loan. Because lenders look only at earned income, you would not qualify for a home loan. But the value of your assets may be enough to assure us that you are not a risk. This is where our Asset Utilization program comes in. 

Instead of using your income from employment, you use your assets to qualify for a mortgage, provided they are substantial. In this case, your monthly income is calculated by dividing your total liquid assets by 60 months. Using funds from your assets means you do not have to show income from any other source, including employment. If you have enough assets to pay for the loan and regular living expenses, you can qualify. 

No, you do not. Assets are only used to demonstrate your ability to repay the loan. We look at liquid assets as your loan collateral, like how W2s and pay stubs are evaluated for a traditional, Government, or Conventional loan. 

Only certain types of assets will help you qualify for an asset-based loan. These include your checking or savings accounts, money market accounts, certificate of deposit (CD) accounts, etc. Certain types of retirement accounts may also qualify, such as a 401(k) or an IRA. In addition, certain types of investment accounts such as mutual funds, stocks, and bonds may also qualify.