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ASSET-BASED HOME LOANS

OUR ASSET-BASED LENDING PROGRAMS ARE DESIGNED TO USE AN APPLICANT'S WEALTH PORTFOLIO TO QUALIFY.

ASSET-BASED HOME LOAN PROGRAMS ARE DESIGNED FOR APPLICANTS WITH SUBSTANTIAL LIQUID FINANCIAL PORTFOLIOS, BUT WHO MAY EARN OR REPORT LITTLE OR NO INCOME ON THEIR FEDERAL INCOME TAX RETURNS. The term liquid financial portfolios refers to US-based bank accounts, retirement accounts, stocks, money market accounts and investment accounts, etc.

NOTE: Real Estate wealth and Cryptocurrency wealth are not considered eligible assets for this type of loan program.

There are several types of loan programs in the marketplace that offer an ASSET-BASED INCOME APPROACH (sometimes referred to as 'Asset Depletion' approach), but the most common example is a traditional Conventional loan program.

HERE IS A COMPARISON OF A CONVENTIONAL LOAN PROGRAM VS OUR OWN PRIVATE CLIENT PORTFOLIO PROGRAM.

CONVENTIONAL

(Fannie Mae)

Maximum Loan Size:

$647,200

BASIC INCOME FORMULA:

Total Liquid Assets Minus Transaction Costs (Down Payment + Settlement Charges + Reserves)

…then divide that number by 360 months.

IF THE APPLICANT HAS

$750,000

LEFT OVER AFTER CLOSING, THE INCOME CALCULATION WOULD BE

$ 2,083/mo

The resulting figure becomes monthly income that the lender uses to qualify the applicant.  

PRIVATE CLIENT PORTFOLIO

Maximum Loan Size:

$20MM

INCOME BASIC FORMULA:

Total Liquid Assets Minus Transaction Costs (Down Payment + Settlement Charges + Reserves)

…then divide that number by 240 months.

+ additional underwriter discretionary income (proprietary calculation)

IF THE APPLICANT HAS

$750,000

LEFT OVER AFTER CLOSING, THE INCOME CALCULATION WOULD BE

$ 3,125/mo - $4,500/mo

The resulting figure becomes monthly income that the lender uses to qualify the applicant.  

As you can see, Conventional loans can be restrictive in their approach. Additionally, the amount you can borrow is limited to the Conventional loan size limit for a given area (currently $647,200 in most areas of Florida).

Thankfully, there are other options. For instance, our Private Client Portfolio program has a much more generous approach, allowing 30% - 40% more income vs a  Conventional loan. It typically has lower interest rates than Conventional programs, and best of all, WE CAN ACCOMMODATE LARGER JUMBO-SIZED LOAN SIZES UP TO $20 MILLION.

They can be used in purchase transactions, rate & term refinances, and cash-out refinances.  Asset-based lending can be used to purchase a Primary Residence, or Second/Vacation homes, but is generally not intended for Investment purposes.

This type of program is designed for well-qualified applicants.

WE DO NOT REQUIRE YOU TO MOVE YOUR MONEY AROUND BETWEEN INSITUTIONS,  so you can keep your existing investment/ banking/ and retirement relationships and strategies as they are.

Each applicant's needs are unique, and we would love the opportunity to review your scenario together and discuss your lending options.  

IF YOU ARE BUYING REAL ESTATE AYWHERE IN THE STATE OF FLORIDA, AND YOU'D LIKE MORE INFORMATION ABOUT OUR ASSET-BASED LENDING OPTIONS, give us a call today.

ConventionalFlexPrivate ClientFlex

WE OFFER 4 DIFFERENT TYPES OF ASSET DEPLETION

AMORTIZATION

(MONTHS)

AMORTIZATION

(MONTHS)

ASSET-BASED INCOME FOR QUALIFICATION

ASSET-BASED INCOME FOR QUALIFICATION

MAX LOAN AMOUNT IN MOST AREAS OF FLORIDA

MAX LOAN AMOUNT IN MOST AREAS OF FLORIDA

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Side-By-Side Comparison of different programs based on the following scenario:

PURCHASE of a SINGLE-FAMILY HOME in FLORIDA

REMAINING NET ASSETS:  $750,000

(AFTER DOWN PAYMENT/ SETTLEMENT CHARGES/ RESERVES)

360

Proprietary

calculation

84

ASSET

MATCHING

$2,083/mo

$4,166/mo

$8,925/mo

N/A

$647,200

(for 2022)

$20MM

$2.5MM

$4MM

This is not a commitment to lend.  Not all borrowers will qualify for the loan programs listed.  All program terms and conditions are subject to change and may be discontinued without prior notice. Contact loan originator for program questions and scenarios.  

GET PRE-APPROVED TODAY

3 easy steps.  No cost/obligation

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