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Not all borrowers fit neatly into the boxes required by traditional lenders. Some borrowers are investors, self-employed, entrepreneurs, retired, or simply living off their investments. They are financially responsible people, but they might not have sources of income that are easily quantifiable. This is where Asset Utilization loan steps into game.


Can borrowers qualify for a mortgage if they do not have income from a job?

Not all potential homeowners choose to fund their home loans in the same way. Sometimes, their income can come from non-traditional sources, such as being self-employed or retired. In some cases, the majority of a person’s actual savings can be in the assets they own rather than in their job income. If lenders looked at job income alone, these people would not qualify for a home loan, but the value of their assets could be plenty to assure the lender that they are not a risk. That is why we have asset utilization programs.


How does an Asset Utilization Loan work?

Rather than using their income from employment, borrowers use an asset utilization loan to qualify for a mortgage provided they have substantial assets. In this case, their monthly income is calculated by dividing total liquid assets by 60 months. Using funds from their assets means they do not have to show income from any other source, including employment. So long as they have enough assets to pay for the loan and regular living expenses, they can qualify.

Asset Utilization

Qualify high net-worth individuals with their accumulated capital

Asset Types

Checking, savings, stocks, bonds

Retirement

70%

LTV

Up to 80% LTV

Min FICO

599

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