Asset Depletion and Asset Based Mortgages
An asset depletion mortgage turns your eligible savings, investment and retirement balances into qualifying income, so you can buy a home without a regular paycheck. I do these for primary homes, second homes and investment properties in Maine and Florida. Not everyone will qualify.
What is an asset based mortgage?
Asset based, asset depletion and asset utilization all mean the same idea. The lender takes your eligible account balances and divides them over a set number of months to come up with a monthly income figure. Each program has its own rules on which accounts count and how much of each.
Who uses asset depletion loans?
Retirees, people who sold a business, people living off investments, and anyone whose tax returns don't show what they can really afford.
What accounts can count?
Checking, savings, brokerage and retirement accounts can all be eligible, depending on the program. I review your statements and tell you which accounts count and how.
Is it a reverse mortgage?
No. It's a regular mortgage with a regular monthly payment. You keep your assets; they're only used to show you can pay.
Frequently asked questions
Can I get a mortgage with no income but a lot of assets?
Yes. An asset depletion mortgage uses your eligible balances to create qualifying income. I do these in Maine and Florida. Not everyone will qualify.
What is an asset utilization loan?
It's another name for an asset depletion or asset based mortgage. Your accounts are converted into a monthly income figure.
Do I have to spend my assets to get the loan?
No. The assets are counted to qualify you. You don't have to drain them.
Can retirees use asset depletion?
Yes. It's one of the most common reasons people use it.