Program Code: Athas2021
Requirements: For primary residences and second homes only (investment properties do not require income verification). SFR, Condo, Townhouse/PUD, 2-4 Unit, Condotels and Non-Warrantable Condos only. Borrower can have any type of employment or be unemployed as this loan is based off their assets rather than their income.
FICO: Minimum Score 600
LTV: Max 75%
Loan Amounts: 100k - $4mm
General: We use a 60-month model for the asset depletion program. Meaning, to determine income we add up all qualifying accounts, subtract down payment, closing costs and any required pay offs and then divide that figure by 60 to determine their monthly income. Max DTI is 50 for this program.
Accounts:
· Liquid accounts 100% value counted: savings, checking, mutual funds, stocks, bonds etc.
· Business bank statements may be used if borrower is 100% owner of business (proved by K1, CPA letter or entity docs) 100% value counted
· Retirement accounts such as IRA’s and 401k’s are acceptable if borrower is 59.5 years or older. 60% of value is counted
· Accounts in a trust can be counted as long as borrower can prove that they have full authority to use trust and the property is vested in a trust
· Life insurance surrender value is acceptable
Example: Borrower has $300k in a savings account and $20k in a checking account. Both solely in their name and want to refinance their primary residence.
1. Add up all assets (300,000 + 20,000 = 320,000)
2. Subtract closing costs (320,000 – 10,000 = 310,000)
3. Divide remainder by 60 for monthly income (310,000 / 60 = $5,166.67 per month)
Program Availability: AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, ME, MN, MT, NC, NH, NJ, NV, PA, RI, SC, TN, TX, WA, & WI (No O/O refinances in TX)
Note: For loans with multiple borrowers where they are joint owners of assets, we average the two middle credit scores for pricing and LTV.
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