How Assets Can Help You Qualify for a Mortgage Active income is not the only way to qualify for a home loan. If you have assets, such as money in your bank account, retirement accounts, stocks, and bonds, you may qualify for a mortgage. Using asset dissipation - also known as asset-based lending - you may even qualify for a long-term fixed-rate mortgage. To figure out what your assets equal in qualifying income: If you're over age 59 1/2, take 80 percent of your total assets and divide that number by 180. If you're under age 59 1/2, take 70 percent of your total assets and divide that number by 180. For Example:
If you're 60 years old, you would take 80 percent of that $1 million, so $800,000, and divide it by 180 months to get a "qualifying monthly income" of $4,445.
If you're 50 years old, you would take 70 percent of that $1 million, so $700,000, and divide it by 180 months to get a "qualifying monthly income" of $3,889.
Even if you're retired, you can still qualify for a mortgage, and your nest egg can help you do it!
BELLBANKMORTGAGE.COM Maximum 42% debt-to-income and minimum 700 FICO credit score. Other restrictions and product guidelines may apply. Contact your Bell Bank Mortgage loan officer for details.
