Asset depletion is a method for calculating monthly income by dividing a borrower’s total assets by a set number of months. The borrower is not required to cash in their assets as they’re only used to demonstrate an ability to make the mortgage and housing payments. This is a great solution for home buyers that have significant assets but difficulty proving income.
- Asset depletion is used to establish monthly income for borrowers using their assets
- The automated calculator uses a 4% rate of return on the assets plus depletion
- Assets are used at 100% of face value including retirement accounts if the borrower is age 59 1/2 or
older. If under 59 1/2, 100% of liquid accounts and 50% of retirement accounts can be used
Asset Depletion Program
- No Rate or Pricing Adjustment
- Can be combined with all income sources (W-2, S/E, Retirement & Rental)
- Easy-to-Use Calculator establishes a monthly income using Assets.
- All collateral types including, condos, non-warrantable condos, condo-tels, co-ops, & hobby farms with acreage.
- All occupancy types – owner-occupied, 2nd homes & investment properties
- Cash-Out proceeds can be used as assets.
- Loan amounts up to $3,000,000
Contact Coast 2 Coast today to learn more, please call ph: 904-342-5507 or just submit the Quick Request Form on this page.