Most self-employed borrowers’ tax returns don’t reflect the true financial strength they possess. That was the case with one of our recent borrowers, and it’s exactly where our Asset Utilization Mortgage Program provided the perfect Non-QM solution.
The Scenario
Our borrower was purchasing a single-family investment property while already holding seven other investment properties. With a 709 FICO score and a 20% down payment, they were financially responsible and well-qualified on paper.
However, their net reported income told a different story. On their tax returns, the borrower showed a 69% debt-to-income (DTI) ratio, which would have disqualified them under conventional lending guidelines. The requested loan amount was $355,000.
The Non-QM Solution: Asset Utilization
Instead of analyzing employment, income, or DTI, our Asset Utilization Program allowed this borrower to qualify based on their liquid assets. By reviewing six months of asset statements, we confirmed that the borrower’s qualified balances were more than enough to cover:
- The loan amount
- The full cost of the loan
- 60 months of the borrower’s current monthly debts
Qualified Assets That Count
Under our program, the following personal assets can be used to calculate qualifying income:
- 100% of checking, savings, and money market accounts
- 100% of assets in a trust (when the borrower is the sole beneficiary)
- 80% of the remaining value of stocks & bonds
- 70% of retirement assets
Asset Utilization
For investors and high-net-worth individuals, the Asset Utilization Mortgage Program is a smart option when traditional income verification doesn’t fully reveal the financial picture. It opens the door to financing by allowing borrowers to leverage the financial strength they’ve already built.
Whether it’s asset utilization,bank statement programs, or othernon-QM products, we help you find the right financing.
