Asset Utilization Loans

Asset Utilization Rental Property Loan

No Job or Income required!

  • Use liquid assets as leverage
  • Competitive market interest rates
  • Preapproval may be issued within 24 hours
Get Preapproved
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Asset Depletion Loan Requirements

Borrower eligibility

Loan amount & terms

Acceptable Properties

 

How Does An Asset Utilization Mortgage Work?


Here's an example below.

Step 1:
• Seller accepts your offer to buy a home for $500,000
• Your offer includes a down payment of $125,000 (25%)
• You apply for an asset utilization loan of $375,000

Step 2:
• Provide loan originator with 3- to 6-months of account statements from your bank or brokerage.
• The underwriter calculates your income using avg. account balance divided by 60 months

      Let's say your investment account balance is $500,000.
      $500,000 ÷ 60 months = $8,333/month

‐ Congratulations! You now have monthly income through an alternative method without employment, no tax returns and no personal income.
fix and flip

What's the best alternative to the non-QM asset utilization loan?

The best option if you can verify your income through tax returns and verify employment or 2 years of self-employment is conventional rental property financing so you get the lowest interest rate, lower fees, and no prepayment penalties. Everyone wants the best but sometimes you have to wait until your situation fits neatly into fannie mae or freddic mac's lending guidelines.

For investment property loans without personal income or job disclosure, we offer the debt service coverage ratio loan which relies on the current or projected rental income.

The second best option is a plain vanilla no income and no job loan with 20- to 25-percent down without substantial liquid asset requirements. The one drawback is this product's interest rates start in the mid-10s to compensate for higher risk to the lender.

fix and flip profits

Asset Utilization Questions

What if my liquid assets are in a business account? + It depends on the business type. If your business is a sole proprietorship one person operation those assets are likely to be accepted by the lender by verifying the DBA recording. If the liquid assets are in an LLC, corporation or partnership accounthose then it is best to transfer your assets to your individual account 30- to 60-days before applying to be eligible.
What if my liquid assets are in a joint spouse account? + This will be subject to underwriter discretion. In this case, usually a signed letter from your spouse that says you have 100% access to the account is satisfactory.
What makes the BRRRR Strategy better than house flipping? + The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy is a better option than house flipping as it provides long-term passive income through rental property ownership while also building equity. Flipping a house can be a risky and unpredictable endeavor that relies heavily on market fluctuations and timing.

Some states are seeking to impose an added profit tax on house flippers. Plus, long term buy and hold adds stability to the area.
How long do I need to wait to refinance a home using the BRRRR strategy? + Some lenders will allow as little as six months while others want 12 months before refinancing a renovated home with a renter to ensure the property has increased in value.
How to use the BRRRR method without any money down?+ Find a property that is undervalued and can be renovated. The purchase price, ARV and renovation costs are what is key to determining if you need to bring money to the deal. Next, secure a loan or investor for the renovations. Once the property has increased in value, refinance it to pay back the loan or investor, and repeat the process.