If a buyer has limited income
from employment but has considerable assets, there is another way
to qualify to buy a house. It is called
“Asset Depletion” and may help certain buyers qualify for the home they want.
The lender will take the marketable assets (CD, stocks, bonds, etc.) and
amortize them over a period up to 30 years depending on the age of the
buyer. From this a monthly “income” is determined from
the assets and this can be used to increase their qualifying monthly
income. This is a great program for retirees, widows or anyone with a lot
of assets but limited regular income.
It is so named because their assets in order are depleted in order to
pay the mortgage…hence the term asset depletion. If you have any
questions on this let me know and I will be happy to get them all the
details as well as a referral to a lender who can help with this kind of loan.
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