Home Buying in Chicago>Question Details

Scoping it o…, Other/Just Looking in Chicago, IL

Can I get a mortgage with assets in lieu of an income?

Asked by Scoping it out, Chicago, IL Tue Jun 11, 2013

I am currently not working, so I don't have an income to speak of. I do have around $800,000 of readily accessible money, which I wanted to use to buy a modest home. Instead of buying a home outright, I wanted to put in a sizable deposit and pay the rest off slowly through a fixed rate loan. Is this possible?

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Jerry Sather’s answer
Don't get discouraged by the majority of these remarks. Jim Pontious is right, there are options available for you. I am no longer in the Chicago area so I can't be of any help to you personally but I know the programs that are out there. Normally people are discouraged because assets can't be used in normal conventional loans to supplement income when people just don't make enough income to qualify on paper (tax write offs, etc.....). But this is not a conventional loan, it would be what is called a Portfolio loan. In other words, the bank would make there own guidelines and would hold onto this loan without being able to sell it into the mortgage market.

The most basic way to look at these types of mortgage is they will use your liquid assets and divide that amount by many months to give you a monthly amount of income from them to use for qualifying. Normally they are referred to as Asset Depletion loans.

In your situation if the $800,000 is totally liquid I would normally see that divided by about 3 years (36 months) which would give you about $22,000 monthly income for qualifying.

Now this is a very basic description, you get the idea.

You will need very good credit and there are other basic restrictions just like any other mortgage loan, read the fine print.

I'm sure Jim or any other experienced mortgage broker in Chicago can help you out.

I hope that is helpful.

Jerry Sather
Gabriel Financial Group
jsather@gfginc.net
0 votes Thank Flag Link Wed Jun 12, 2013
We do have an asset based program that may work. Please call me
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
1 vote Thank Flag Link Tue Jun 11, 2013
Yes, expect to have to pledge a good amount of money to secure the loan as well as a large down payment.
Since it appears you have a solid banking relationship in place,start the conversation with the institution that holds the money and knows your financials.
Best of luck, if you need a good agent............
0 votes Thank Flag Link Wed Jun 12, 2013
Yes you can! There are several asset based lending programs available? If you would like to know more please let me know.

Jim Pontious
mortgage banker
Phh home loans
Jim.pontious@phhonline.com
0 votes Thank Flag Link Wed Jun 12, 2013
I doubt it but my web site has some lender references so give them a call and ask.
0 votes Thank Flag Link Wed Jun 12, 2013
It's possible depending on the asset.


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0 votes Thank Flag Link Wed Jun 12, 2013
There may be some programs out there, but usually most lenders want to see income in order to qualify you for the loan. If you have a lot of assets, that's great, but what will pay the monthly mortgage payment? Will you be selling off any assets? Do you receive royalties, dividends, rent, etc from your assets?

check with several lenders, mortgage brokers, credit unions, etc. You might also want to consider a private mortgage for the time being, then once you have employment, you can contact a lender and refinance.
0 votes Thank Flag Link Wed Jun 12, 2013
Either pay CASH or speak to a community bank or possibly a larger bank and see if they can place your loan in their portfolio.
0 votes Thank Flag Link Tue Jun 11, 2013
A bank may be able to make an exception. Call a few up.
0 votes Thank Flag Link Tue Jun 11, 2013
I hear that as stupid as it sounds lenders don't care much about assets. They care about income.
Web Reference: http://LucidRealty.com
0 votes Thank Flag Link Tue Jun 11, 2013
What's your credit score? you should be able to. check with several lenders
0 votes Thank Flag Link Tue Jun 11, 2013
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