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Asset Depletion Mortgage Loans

Contrary to popular belief, not all potential homeowners follow the same path with regard to funding their home loan. 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 wouldn’t qualify for a home loan, but the value of their assets could be plenty to assure the lender that they are not a risk.

This is why an asset depletion mortgage, also known as an asset depletion loan, exists.

How Does an Asset Depletion Loan Work?

Rather than using your income from employment, you can use an asset depletion loan to quality for a mortgage provided you have substantial assets. In this case, your monthly income is calculated by dividing total liquid assets by 360 months (30 years, the length of most mortgages). Using funds from your assets means you don’t have to show income from any other source, including employment. So long as you have enough assets to pay for the loan and regular living expenses, you can qualify.

Do I Need to Cash In My Assets to Get Approved?

Not at all. The assets in this case are only used to demonstrate that you have the ability to make your mortgage payments. Think of it as an alternative to conventional home loan funding, but rather than look at your W2s or pay stubs, the lender looks at your liquid assets as your loan collateral.

What Types of Assets Can Help Me Qualify?

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

Loan Features:

  • Min FICO 680
  • Loan amount up to 3M
  • Max cash out $1.5M
  • Income qualification based on verified liquid assets
  • 15 & 30 year fixed; 5/1, 7/1, 10/1 ARMS
  • Employment and Income are not required to be disclosed on the 1003
  • Full asset documentation required for funds to close, reserves and qualifying asset requirements
  • Assets can be cash in the bank, stocks, bonds, IRAs, 401ks, mutual funds or retirement accounts
  • Asset levels in the verified accounts are expected to be consistent and sustained

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Client Reviews

LBC Team went above and beyond to help us buy our new home! They were available for all of our questions, were prompt in their replies to us, and guided us...
Julia T.
Julia T.
08:40 22 Aug 21
Excellent team of great professionals! Superb customer service! They have successfully handled our purchase and refinance in a very short period of time,...
Elina L.
Elina L.
11:12 30 Jun 21
It is hard to describe how scary we were when decided to buy a house. We had no knowledge of the processing, prices, policies, calculations… When our agent referred us to Alex Shekhtam, from the first phone consultation we felt to be just in right hands. We are so blessed to have LBC Mortgage team! Our first house was purchased just because of these hardworking, reliable, efficient, responsive professionals! Recently we were able to refinance our house on good conditions, again, just because of them! Easy processing paperwork, knowledgeable advisors, pleasant communication make you feel special. We are so grateful to all and everyone from LBC Mortgage for making our dreams true!!!!
Lora Kochetkova
Lora Kochetkova
03:44 29 Jun 21
LBC Team is now our Number One Team! Their service was impeccable! We really appreciated the detailed explanations and daily reminders throughout the whole...
Galina S.
Galina S.
13:34 29 Mar 21
We were able to close on our first home even with a strict budget, and I credit it all to Alex and the staff at LBC Mortgage. We couldn’t have done it without you. Thank you so much!
Roger Billon
Roger Billon
06:07 25 Mar 21
Alex and his team were very attentive to our needs. We had some very specific criteria when looking for a home, and most mortgage companies, especially banks, were not even willing to listen to us -- but the team at LBC Mortgage was. They kept everything moving and were happy to answer our questions. We never felt like a burden to them, and that’s how customer service should be.
Kaylani paliotta
Kaylani paliotta
05:51 25 Mar 21
This was one of the last steps I needed to do in order to close on a home, and I had been putting it off because I had assumed it was a complicated and cumbersome process. I could not have been more wrong. Alex and everyone at LBC Mortgage made the process really simple and straightforward. Excellent company with people that really care about you.
Charles W
Charles W
06:52 23 Mar 21
If you are shopping online for mortgage or refinance, look no further. Seamless process and good communication. I am pleased with their fast response. They kept me updated with each phase of a process. Thank you LBC Mortgage.
Christiane BABINOT
Christiane BABINOT
07:40 03 Mar 21
People often ask me who I use for my own mortgages and refinances. Every time I recommend LBC Mortgage. They’re always working hard to stay one step ahead of the competition. To me, they’re more like family than my mortgage company. I’ve just closed my third deal with them and I can’t wait to see what the future holds.
Ahndray Hamilton
Ahndray Hamilton
09:06 18 Feb 21

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How Do I Apply for an Asset Depletion Loan?

It’s important to note that these are just the basics as far as understanding how this type of alternative funding works and why it may be a good avenue for your unique borrowing needs. There are certain requirements and only a certain percentage of your assets are counted. For this reason, it’s important to choose a lender that has experience with an asset depletion mortgage to help you better understand these requirements, regulations and other steps you’ll need to follow in order to get qualified and approved.

Fortunately, LBC Mortgage has a great deal of experience in alternative funding for home loans, including asset depletion loans. Contact us today to learn more about this unique form of financing, and we’ll take the time to answer any questions you may have, as well as work with you to help you get the best possible rates should this be a loan that you’d be interested in pursuing.

Our helpful, friendly home loan experts are ready to serve and work hard to get you the best deal by taking the time to understand your unique situation.

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