Getting to Know the Asset Qualifier Mortgage

Home buyers who have inconsistent documentable income may face challenges when it comes to getting a mortgage. However, there is an option that may serve as a great alternative to getting a traditional home loan – the Asset Qualifier Mortgage.

At Luxury Mortgage, we understand that every borrower’s scenario is different. Some borrowers may be very creditworthy, but lack the substantial income documentation that is usually required for conventional financing. With our Asset Qualifier Mortgage, borrowers can use their financial assets to qualify for a new purchase or refinance loan, instead of relying on their income and employment.

Asset Qualifier Mortgage – The Basics

While most mortgages require the borrower to provide proof of income and employment, the Asset Qualifier Mortgage allows the use of assets (funds from other accounts or investments) in place of these. This can be an excellent mortgage solution for real estate investors, self-employed borrowers, or anyone with significant assets and a healthy investment portfolio. 

Program Benefits

In addition to offering the freedom to use assets in place of income and employment to qualify, the Asset Qualifier Mortgage also features the following benefits:

• Borrowers can finance up to 80% of the property value
• Credit scores as low as 580
• Loan amounts up to $4,000,000
• Competitive pricing
• Variety of eligible properties, including 1-4 unit properties, PUDs, warrantable condos and non-warrantable condos on a case-by-case basis

Loan Requirements Overview

In order to take advantage of this program’s unique benefits, borrowers must be able to provide asset documentation as follows:

• 100% of the loan amount
• Required reserves (as specified in the guidelines; speak with your loan advisor for details)
• Funds to close
• 60 months of other debt service
• 60 months of the sum of net rental loss on any individually owned properties

Funds may be in checking, savings, money market accounts, marketable securities or retirement accounts (70% can be counted if the borrower has not yet reached retirement age, 80% if they are retirement age.)

Additional requirements include documentation of credit history and credit score (a current credit report will be requested and reviewed) and the value of the subject property as documented by an appraisal. For loan amounts greater than $1.5 million, a second appraisal may be required.

Please note that loan guidelines are subject to change and there may be other requirements in addition to those listed above.