Home Loans Based on Assets Only, Not Income

Matt Boytz

February 1, 2025

Uncategorized
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Home Loan Programs
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If you’ve been struggling to get approved for a mortgage because your income doesn’t fit traditional lender requirements, I have a new option available that could be the perfect solution. Whether you’re self-employed, retired, or have significant savings but little documented income, this program could help you buy the home you want.

There’s no need to liquidate any funds beyond what’s required for the down payment. Instead, we use your existing assets to calculate your borrowing power, no need to move funds or anything tricky. Eligible assets can include savings, investment accounts, and retirement funds, even if you haven’t yet reached retirement age. See below for the bullet points on this exclusive mortgage product.

Who Is This Program For?

This program is designed for borrowers who have substantial liquid or retirement assets but may not show enough income on paper to qualify for a traditional mortgage. It’s an ideal option for:

  • New business owners who haven’t yet built up a long income history
  • Retirees or those approaching retirement with significant savings
  • Investors with strong portfolios but inconsistent income streams
  • High-net-worth individuals with income primarily from dividends or capital gains

Key Program Features

  • 20% Down Payment Required – A reasonable entry point compared to hard money loans.
  • Interest Rates – Approximately 1% higher than conventional rates, but can be bought down.
  • No Debt-to-Income (DTI) Ratio Cap – Instead, borrowers need to meet a budget requirement.
  • Asset Requirement – At least $500,000 in eligible assets remaining after down payment and closing costs.
  • Budget Consideration – Monthly budget accounts for all credit payments, new mortgage, and a $2,000 living expense allowance (adjustable for high-cost homes).
  • 5-Year Asset Depletion Period – Assets are divided over 60 months for qualification, which is significantly shorter than traditional asset depletion programs.

How It Works: Example Calculation

Let’s say you have $750,000 in eligible assets and $1,500 in monthly debt payments:

  • $750,000 ÷ 60 months = $12,500/month
  • Minus $2,000 for living expenses
  • Minus $1,500 for credit payments
  • Result: $9,000 available for mortgage qualification

What Counts as Assets?

  • 100% of checking/savings accounts
  • 85% of stocks, bonds, and mutual funds
  • 85% of retirement accounts (if 59.5+ years old)
  • 50% of retirement accounts (if under 59.5)This feature is particularly valuable for younger retirees and high-net-worth individuals.

Things to Consider

  • Tax Implications – While this program allows the use of retirement funds and investments for qualification, you may see a huge benefit from financing with this program instead of liquidating investments and retirement funds. Check with your advisor or CPA for more on the actual savings and strategy.
  • Slightly Higher Interest Rates – The rate is about 1% above conventional loans, but you can choose to buy it down.
  • Full Underwriting Still Applies – Your credit and property will still go through the standard underwriting process. We just don’t use the typical income calculation.

Take the Next Step

This loan program is a fantastic option for buyers who have strong assets but don’t fit into traditional lending guidelines. If you think this might be the right solution for you, let’s talk! Reach out today to explore how this program can help you achieve homeownership.

Matt Boytz author

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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www.BendMortgageBrokers.com