Asset Depletion Loans
For Borrowers with Assets. No Employment Required. At Crestico, we offer Asset Depletion Loans for borrowers who have significant assets but may not have a traditional income source.
Step 1
Check Eligibility
Step 2
Payment Option
Step 3
Get Approved
Step 4
Close the Loan
Step 5
Repayment & Loan Terms
Crestico Funding’s Asset Qualifier Loan: An Asset Depletion Solution
At Crestico Funding, our Asset Qualifier Loan program offers a solution for borrowers who may not meet traditional income or employment requirements. This program can be particularly beneficial for those utilizing asset depletion to qualify. Asset depletion allows borrowers to use their liquid assets to demonstrate their ability to repay the loan, without needing to rely on traditional income sources like employment or tax returns. The borrower’s assets are “depleted” over time to determine an income equivalent, making this ideal for individuals with substantial liquid savings but no regular income stream, such as retirees or self-employed individuals with fluctuating earnings.
Key Program Features:
- Loan amounts from $150,000 to $4 million
- Available for purchase, cash-out, or rate-term refinance
- For primary residences only
- No employment, income, or DTI requirements
- Asset depletion used to qualify, based on seasoned assets
- Five years’ seasoning for foreclosure, short sale, or bankruptcy
- 30-year fixed rates with interest-only options
- All assets must be sourced and seasoned for at least six months
- Required assets: Loan amount, monthly debts multiplied by 60 months, funds to close, and three months’ reserves
- Minimum post-closing assets of $500,000
Frequently Asked Questions (FAQs)
What is an Asset Qualifier Program with Asset Depletion?
At Crestico Funding, our Asset Qualifier Program with Asset Depletion allows borrowers to qualify for larger loans by using their liquid assets. Instead of relying on traditional income or employment verification, borrowers can use asset depletion to demonstrate their ability to repay the loan. Asset depletion involves converting a borrower’s assets into a monthly income equivalent, which can then be used to meet qualification requirements. This program is ideal for self-employed individuals, retirees, or others with substantial assets but irregular or no consistent income streams.
Can a Retirement Account Be Used to Qualify for a Mortgage?
Yes, retirement accounts such as IRAs, 401(k), annuities, and lump sum retirement distributions can be considered as assets when qualifying for a mortgage. These assets can be used to help borrowers qualify through programs like Asset Depletion or Asset Qualifier, depending on their situation. To confirm if your retirement account qualifies, contact a Crestico Funding loan officer for detailed guidance and verification.
What Assets Are Required?
To qualify, we require a minimum of $500,000 in post-closing assets, along with funds to close and six months’ reserves. For further clarification on the specific asset requirements needed for qualification, please contact a Crestico Funding loan officer.