Do you live off your investments or report such little taxable income on your tax returns that most lenders turn you down for a mortgage?
It’s frustrating, we know. You know you have more than enough money to qualify for and afford a mortgage, yet no one will give you a chance.
At Fidelity Funding Mortgage Corp, we cater to borrowers just like you with our asset based mortgage program. You use your liquid assets rather than income to qualify for a mortgage. It’s not your traditional mortgage, but it gets you the funds you need to buy a house without depleting your assets all at once and it’s a reputable program that borrowers appreciate.
When you live off your assets, you deplete your assets. It’s not a bad thing even though ‘deplete’ sounds bad. In other words, you live off your assets, using them as your annual income rather than receiving payment from an employer. It’s using your liquid assets, the money you’ve worked hard to earn (by working and investing), and enjoying life!
An asset based mortgage creates an ‘income stream’ from your assets by depleting them over the term of the mortgage. It’s how we qualify you for a mortgage despite not having traditional income.
The asset based mortgage amortizes your assets after the down payment, closing costs, and required reserves. In other words, it spreads out your assets over the mortgage term to determine your eligibility for a loan.
At Fidelity Funding Mortgage Corp, we have four asset based mortgage programs we can use to help any type of borrower in Florida who doesn’t have traditional income.
Most people already understand conventional loans – it’s the loan most people think about when qualifying for a mortgage. What most people don’t know is you can get conventional financing using asset depletion.
With the Conventional loan model, you can borrow up to $548,250 currently, if you can prove you have enough funds to qualify. The conventional loan amortizes your assets over 360 months.
For example, if you have $1 million in net assets (after the down payment, closing costs, and reserves), you’d have $2,777 monthly qualifying income.
We also work with private clients catering to luxury home buyers who offers an asset based mortgage for homes up to $6 million and with asset amortization of 240 months. Using our example above, you’d have $4,167 monthly qualifying income. (133% more income than a conventional loan for the same asset)
Our Flex Home Loans program gives low credit borrowers a second chance. This program offers more flexible guidelines, allowing loan amounts up to $2.5 million and amortizing your income over just 84 months. Using our $1 million in net assets example, you’d have $11,904 in monthly qualifying income, making it much easier to qualify for a home loan.
Our final program works a bit differently, helping even more borrowers in the Tampa Bay area get mortgage financing. It’s called the asset matching loan. With this loan rather than depleting your assets, we match your assets. If you have $500,000 in assets, you can borrow up to $500,000. There are no calculations to determine or loan amounts to figure out – it’s straight-forward.
To use your liquid assets to qualify for a mortgage, you’ll need assets, obviously. But you’ll need enough assets to deplete over the term required by the mortgage program. If you meet that requirement, you’ll also need to meet the following:
Asset based mortgages have pros and cons, just like any other mortgage.
First, let’s look at the benefits:
As with any mortgage investment, there are risks including:· If you don’t make your payments, you could lose your home· If your assets deplete faster than you anticipated, it could leave you in a difficult financial situation.
If you have significant assets set aside, you may be a good candidate for an asset based mortgage, using your liquid assets to qualify for a mortgage.
Rather than investing all your money in a home upfront and putting it at risk, we can help you get the mortgage necessary to use your liquid assets in a timely manner, giving them plenty of opportunity to keep compounding, growing your earnings while you also invest in a home.
At Fidelity Funding Mortgage Corp, we are happy to help you choose the mortgage that’s right for you. Not too many people know about the use of liquid assets to get a mortgage, but once the word gets out, more Florida residents will be buying homes and achieving their financial dreams.
If you’re ready to see if you qualify for an asset based mortgage, get in touch with us today!
We’d love to help you!