The U.S. mortgage market works well for many borrowers. But when it comes to homebuyers with special situations, traditional loan products don’t always fit the bill.
Take the case of a borrower with a strong personal balance sheet but not much income. Perhaps this person retired early and hasn’t started tapping pensions or taking required minimum distributions. Or maybe the borrower has transitioned into a career as an entrepreneur or a commissioned salesperson and hasn’t yet started bringing in a steady income. That’s where LendSure’s asset qualifier loans come in. Tailored to borrowers with substantial assets but limited income, asset qualifier loans take into account the loan applicants holdings of cash and cash equivalents, as well as stocks and bonds and retirement accounts.
Underwriting of an asset qualifier loan adds up all of a borrower’s assets, then divides that amount by 60 to determine a proxy for the borrower’s monthly income, and the size of the monthly payment a borrower is eligible for.
LendSure’s asset qualifier guidelines give borrowers credit for 100% of their cash and cash equivalents, 80% of their stocks and bonds and 70% of their retirement holdings. Here’s an example of a loan applicant’s financial picture, and how it translates to the asset qualifier programs:
| Asset type | Amount | Percentage used | Qualifying amount |
| Cash | $200,000 | 100% | $200,000 |
| Stocks and bonds | $400,000 | 80% | $320,000 |
| Retirement accounts | $400,000 | 70% | $280,000 |
| Total qualifying assets | $800,000 |
In this scenario, the $800,000 total qualifying assets would be divided by 60 months for a monthly qualifying income of $13,333.
Outside-the-box borrowers
A quirk of the mortgage market is that a borrower with minimal assets but a steady paycheck can qualify for a home loan – but a borrower with significant assets and spotty income can’t get a traditional mortgage. Sure, this borrower could just sell some stocks to buy the house, but there are many reasons why an affluent investor wouldn’t want to liquidate investments to buy a home. Perhaps they’re worried about tax implications. Or maybe they simply prefer to leverage their homes and keep as much cash as possible in the market.
LendSure’s asset qualifier program is the perfect solution to secure a loan for borrowers with high net worth and significant assets. We require no tax returns and no other income documentation. Their assets are all the documentation we need. This video gives an overview.
Loan originators can offer this solution for affluent borrowers looking to finance their properties during this current housing market.
Your LendSure account executive can walk you through the process and will be available to assist the entire way.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.
Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about asset qualifier loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
