By W. Todd Galde
First, what is Asset Depletion? This is the ability to use your existing assets as income to qualify for clients without traditional income and who have enough assets to make it worthwhile. Borrowers who could utilize Asset Depletion are those who are retired, or who write off too much on the tax returns, or who simply don't make enough money to qualify for the payment but who have assets locked up in interest-bearing accounts.
Asset Depletion is a useful income tool which provides monthly qualifying income from the borrower’s liquid available assets, without having to actually liquidate or move the funds in any way.
Here are some "out of the box" features of the new Jumbo Express Non-QM loans from Commerce Home Mortgage:
Calculate the depletion of assets using a 3% return over the life of the loan, similar to calculating a P & I payment for a mortgage: Every $1M In eligible assets equates to roughly $4,200 in monthly qualifying income!
Assets that are “depleted” for qualifying income CAN also be used as reserves!
Depletion CAN be used on Cash-Out Refinance Loans
There is no LTV restriction to use this opportunity (LTV’s as high as 90% available)
DTI as high as 49.99% permitted!
As you can see, Asset Depletion is a useful income tool which provides monthly qualifying income from the borrower’s assets without having to actually liquidate or move the funds in any way.
If you or someone you know needs a solution like this please don't hesitate to email or call. My team and I will take great care of you or someone you refer to me.
Your Mortgage Advisor for Life,
Todd Galde | nmls#256864
Call or Text: 925-381-8190