ASSET DEPLETION MORTGAGE CONNECTICUT

Purchase or Refinance:

• Minimum 620 credit score required
• No Employment required
• No 4506-C or tax returns required
• Max DTI (debt to income) ratio 50%
• PITIA reserves on subject property only
• Assets documented with 3 months statements

Property Type:

• Single Family
• 2-4 Units
• PUDs
• Condo
• Townhouse
• Modular homes
• Hobby Farms
• Mixed-use properties
• Primary homes, Second homes and Investment properties

What is an Asset Depletion mortgage?

An asset-based mortgage is a strategy that allows individuals to use their assets, such as savings, investments, and retirement accounts, as a source of income to qualify for a mortgage or refinance. It’s particularly beneficial for those with substantial assets but inconsistent income.

Why Choose an Asset-based mortgage?

This can be a game-changer for individuals who may not meet traditional income requirements but have substantial assets. It offers a path to homeownership or refinancing that might otherwise be out of reach.

How Does Asset Depletion Work?

We will need to calculate your monthly income based on the value of your assets. Here’s how it works:

• Assess Your Assets: Take stock of your savings, investments, and retirement accounts.
• Determine Monthly Income: Lenders use a formula to calculate a monthly income figure based on your assets’ value.
• Qualification: If your calculated monthly income meets the lender’s requirements, you qualify for a mortgage or refinance.

What are the Benefits?

• Flexibility in Income Qualification – Asset depletion provides flexibility in income qualification. It allows you to leverage your assets rather than traditional employment income.
• High Asset Value Matters – The higher your asset value, the more likely you will qualify for a larger mortgage or favorable refinancing terms.
• Enhanced Homebuying Opportunities – Asset depletion opens doors to homeownership for retirees, self-employed individuals, and those with irregular income sources.

Eligibility and Requirements

To apply for an asset depletion loan, borrowers typically need:

• A strong credit history.
• A detailed list of assets and their values.
• A clear understanding of their monthly expenses.