Asset Qualifier – Asset Depletion Mortgage Program Explained


At, eligibility is determined exclusively based on the Applicant’s available liquid assets and assets that can be easily converted into cash without restrictions.

Method 1 | Mortgage Only:

  • The total assets after closing must equal at least 125% of the outstanding mortgage debt for which the Applicant holds personal liability. This includes the proposed mortgage(s) on the subject property.

Method 2 | Simplified:

  • The total assets after closing should equal at least 110% of the proposed mortgage(s) on the subject property, plus an additional 25% of all other outstanding debt (both mortgage and consumer debt).

Method 3 | Traditional:

  • To meet the criteria for this method, total assets after closing should equal the sum of the following:
  • 100% of the loan amount
  • 36 months of total debt service (excluding the PITIA or PITIA on rented properties with documented rental income for the subject property)
  • 36 months of net rental losses on rental properties (excluding the subject property’s PITIA)

Rental Calculation (Method 3 Only):

  • Rental properties are evaluated on a net basis, considering 75% of the lease income minus PITIA to determine their impact on debt service. The net rent cannot exceed $0 when determining the impact.

Asset Calculations (All Methods):

  • Assets are determined based on the following calculations:
  • Cash and cash equivalents: 100% of face value
  • Marketable securities (excluding unvested RSUs and Stock options): 80%
  • Retirement funds: 70%, unless the Applicant is of retirement age, in which case 80% can be used. If using a retirement account, the Applicant’s ability to access the funds must be documented.
  • Cash surrender value of life insurance/annuity: 100%
  • Cryptocurrency: 100% if it can be liquidated
  • To meet asset requirements, up to 10% of the assets used may come from cash-out proceeds (Methods 2 and 3 only). The balance of any loans secured against financial assets being utilized would be evaluated accordingly.

Contact us to see if you qualify for a mortgage using your liquid assets to qualify.

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