This super jumbo Asset Depletion Mortgage Program allows qualified borrowers to use eligible assets to establish qualifying income instead of relying entirely on traditional employment or tax-return income.
This Non-QM mortgage option may be available to both W-2 wage earners and self-employed primary or co-borrowers with substantial liquid assets. Updated loan amounts are available up to $5,000,000, with purchase, rate-and-term refinance, and cash-out refinance options.
Tax returns are not required for income qualification under this asset depletion program, and Form 4506-C is not required.
Asset Depletion Loan Amounts and LTV
Program financing available up to $5 million, subject to credit score, loan amount, occupancy, property type, asset eligibility, and underwriting requirements.
Published financing tiers include:
- Loan amounts up to $5,000,000
- Up to 80% LTV on loan amounts up to $2,000,000 with a 660 credit score
- Up to 75% LTV on loan amounts up to $2,000,000 with a 640 credit score
- Minimum qualifying credit score: 640
Loan amounts above $2 million may be subject to lower maximum LTVs and additional underwriting requirements.
How Asset Depletion Income Qualification Works
Rather than qualifying solely from wages, tax returns, or self-employment income, eligible borrower assets may be used to calculate qualifying monthly income.
The lender reviews qualifying assets and applies the program’s asset depletion calculation to determine the income available for mortgage qualification.
Eligible assets and the percentage of those assets that may be used are subject to lender guidelines.
Income Documentation
Program income documentation features include:
- No tax returns required for asset depletion qualification
- Form 4506-T not required
- Form 4506-C not required
- Verified eligible assets used to establish qualifying income
- Available to qualifying W-2 and self-employed borrowers
Credit Requirements
Credit requirements include:
- Minimum credit score: 640
- Minimum 2-year seasoning from bankruptcy, foreclosure, or short sale
Additional credit requirements may apply depending on the loan amount, LTV, and overall borrower profile.
Eligible Loan Purposes
The Asset Depletion Mortgage Program may be used for:
- Purchase
- Rate-and-term refinance
- Cash-out refinance
Asset Depletion Cash-Out Refinance
Cash-out refinance transactions may allow up to $1,500,000 in cash proceeds, subject to maximum LTV, credit, reserves, and underwriting guidelines.
Eligible Property Types
Eligible property types include:
- Attached Single-family residences (SFR)
- Detached Single-family residences (SFR)
Other property types may require a different asset depletion or Non-QM loan program.
Eligible Occupancies
Eligible occupancy types include:
- Owner-occupied primary residences
- Second homes/ Vacation homes
Second and vacation homes are available up to a maximum 80% LTV, subject to loan amount and credit requirements.
Debt-to-Income Ratio Requirements
The program generally allows debt-to-income ratios in the 43% to 50% DTI range, depending on the borrower’s credit profile, LTV, loan amount, reserves, and other compensating factors.
Because asset depletion income is used in the qualifying calculation, the resulting monthly qualifying income is incorporated into the borrower’s DTI analysis.
Asset Depletion Mortgage Program Highlights
Key program features include:
- Loan amounts up to $5,000,000
- Minimum 640 credit score
- Up to 80% LTV on qualifying loan amounts
- No tax returns required
- No Form 4506-T
- No Form 4506-C
- Purchase financing
- Rate-and-term refinance
- Cash-out refinance
- Up to $1,500,000 cash out
- Owner-occupied residences
- Second and vacation homes
- Asset-based income qualification
States Where the Asset Depletion Program Is Available
The program is available in the following states and the District of Columbia:
Alabama, Arizona, California, Colorado, District of Columbia, Florida, Georgia, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and Washington.
Last Updated on 1 month ago by Broker Mortgages