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Homebuyer Tips

Loan Options for Self-employed and Retired Home-buyers

There are many solutions to obtain home-ownership, and if you're self-employed or retired, it can be a bit tricky. The Asset Depletion and Bank Statement programs are two great solutions for home-buyers who are self-employed and/or retired. First Bank offers innovative solutions to help you qualify for a mortgage using alternative income documentation.

Option 1: Asset Depletion

Benefits and Features

  • Traditional income sources not required to buy a home

  • Liquid assets may be used as sole income or as supplement to regular income

  • Up to 50% of 401(k) may be used

  • Use for purchases or refinance

  • Great for retiring or self-employed borrowers with significant assets

Who Would Benefit from an Asset Depletion Loan?

Asset Depletion Loans are ideal for individuals with significant amount of assets who cannot provide adequate income documentation, such as retired individuals and stock market investors.

How It Works

With an Asset Depletion Loan, your income is calculated by dividing your total liquid assets over 180 months. Assets that qualify as liquid assets include retirement accounts, investment accounts, checking accounts, savings accounts, stocks, bonds, CDs, etc. Borrowers can use 100 percent of their cash and non-retirement investment accounts in calculating the  total liquid assets.

Option 2: Bank Statement Program

Benefits and Features

  • Allows for credit scores as low as 600

  • Allows loans up to $1,000,000

  • Doesn’t require tax-returns

  • Allows for investment properties

  • Only requires as little as 10% down

Who Would Benefit from the Bank Statement Program?

The bank statement mortgage program is a great option for self-employed borrowers who do not have the tax documents to prove their ability to pay.

How It Works

The Bank Statement program is calculated by monthly bank statements to help self-employed borrowers qualify for a mortgage.

To explore more home purchase options contact us today to help you finance on your dream home!**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. All loan scenarios assume borrowers with FICO score of 740 and DTI of 34% and home insurance and taxes are not included. 30- year Non-Conforming scenario is for a fixed-rate mortgage loan financed at 90% at the amount of $360,000 with a 7.625% interest rate (8.038% APR) locked for 30 days. Monthly MIP has been rolled into monthly payment at a rate of .320% until a LTV amount of 80% has been reached. Total estimated mortgage listed at $2,644.06/month.

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