Scoring an Asset-Based Loan

Not having a traditional job doesn’t mean you don’t have any money, but that’s what it looks like to a financial institution. Without a steady, verifiable income, getting a loan is difficult, but it is possible to use financial assets in order to qualify.

Funds saved in traditional retirement accounts, 401(k)s, and proceeds from a business sale are qualifying assets which can be taken into account when determining income for a traditional mortgage. The formula used to determine the monthly income amount is:

(Sum of qualifying assets x 0.7 – Fees)/360

Fees include closing costs, financing costs, escrows, and any money required to complete the home sale, while 360 represents the 30-year mortgage period and is used regardless of the length of your mortgage.

If you are retired, or have limited income but substantial financial assets, and would like to buy a home in California, contact us today at Avis Lending. We are happy to help you qualify for a mortgage based upon your assets in place of income, and put you into the home of your retirement dreams.

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