Asset Depletion

We recognize that many highly qualified borrowers with proven credit and financial stability may still have difficulty qualifying under traditional underwriting guidelines. At First Bank, our asset depletion program may provide those individuals with the perfect home financing solution.

Program Features:

• Borrower is not required to cash in assets as they’re only used to demonstrate an ability to make the mortgage and housing payments
• Assets are generally qualified with 100% of cash accounts and 70% of retirement and investment accounts
• Purchase a primary residence or second home
• Perfect for high net-worth individuals

What is Asset Depletion? Is it right for you?

Occasionally, the most qualified buyers have difficulty qualifying for a mortgage under traditional underwriting guidelines. They may have investment accounts, funds in a bank account and other liquid assets but have minimal or unpredictable income.

If this describes you, our Asset Depletion mortgage may help. Asset Depletion enables you to use liquid assets to qualify for a mortgage. You don’t have to cash them in or sell them. Those assets are simply added to your income to help you qualify for a mortgage.

Traditional mortgages rely on monthly income from the previous two years, along with credit history and debt to income ratios, to calculate the total amount of loan you qualify for. Ultimately, if banks lend money, they want to know that you have what it takes to pay off the loan within a reasonable risk level.

Unfortunately, if your total income for the last two isn’t very high, it will be difficult to get a traditional mortgage, regardless of your total liquid assets.

By adding up your total liquid assets and dividing them by 360 (the average length of a mortgage), we may be able to qualify your mortgage on your calculated monthly “income.” You don’t actually have to liquidate any of your assets, this just proves to a lender that you have what you need in assets to pay off the loan.

Although not a common way of qualifying for a loan, this is perfect for high-net worth individuals who are either retired, between jobs or have sporadic income that makes a monthly income amount difficult to calculate.

Our Asset Depletion Loan:

• Can be used to purchase a primary residence or a second home.
• Does not require you to cash in assets. Assets are just used to prove your ability to make payments.
• Is qualified on 100% of cash accounts and 70% of retirement accounts
• Is perfect for high-net worth individuals without consistent income.

*All loans subject to credit approval. Terms, conditions and restrictions apply. This is not a commitment to lend. Some products may not be available in all states.

Questions? We can help. Click here to meet our home loan experts.