Asset-Based Mortgages & Home Loan Information

We help our clients demonstrate their ability to qualify for a mortgage from IRAs & 401(k)s and other investment types

An asset-based mortgage is a loan that uses an individual’s assets instead of income during the loan approval process. An asset-based loan (or asset depletion loan) is best when retired or living on a fixed income. Asset-based mortgages and refinancing are becoming a popular solution for both Veteran and non-Veteran borrowers with little to no monthly income.

Can I Use My 401(k) & Investments To Qualify?

Yes! You can use an IRA, 401(k), or other investments to qualify for a loan with HomePromise. For many people, we can turn assets into a large amount of income that will make the difference between a denied loan and an approved loan.

Asset-based mortgage lending is perfect for those who have limited income but have liquid assets and retirement assets like IRAs and 401(k)s.

How Does Asset-Based Mortgage Lending Work?

Asset-based lending allows you to use your assets to supplement your income. This type of loan allows you to use assets to show the cash flow needed for loan approval. Due to this, some call these “asset depletion” loans.

How Does HomePromise Differ From Other Lenders?

Asset-based lenders usually require the asset to be spread out over the life of the loan. This process allows you to convert the asset into income but the amount of income you get may be very small. Many asset-based lenders require loans to be adjustable-rate mortgages. Not with HomePromise, we offer fixed rate asset-based mortgages so you have the safety of a level payment for the life of your loan. HomePromise also provides asset-based loans for primary residences, second homes and investment properties. Note that our asset-based loan program is for residential 1-4 family properties only.

What Are The Advantages Of An Asset-Based Mortgage?

Asset-based mortgages offer unique advantages. 

The main advantage of an asset-based or asset depletion loan program is that you can use your retirement income and other assets to qualify for a loan. Designed for those who have significant and verifiable assets, this type of program works well whether buying a home or refinancing. Your asset amount determines your approved loan amount and mortgage payments each month.

The advantage of asset-based financing is that you qualify even though you may have only a small amount of verifiable income. Many people with limited income have lots of assets in various accounts. We make it possible for you to use your assets to qualify for a mortgage even if your monthly income is limited.

Providing an income stream from assets is a great solution if you have limited income.

Do You need a down payment for an asset-based mortgage or refinance?

In some cases, our asset-based program doesn’t even require a down payment. This applies in the case of a VA mortgage for a Veteran or current member of the military.

What are the requirements for an asset-based mortgage with HomePromise?

The asset requirements for HomePromise depend on the loan program chosen, but in general, the asset needs to be liquid or readily available for withdrawal. Assets that can’t be accessed are not allowed – for example, a retirement program where you are not vested yet. Vesting in a retirement program refers to ownership of the funds in the retirement account.  If you are not vested in a retirement account, then the funds are not yours yet.  HomePromise has loan programs that allow assets from a bank savings account. Our generous asset lending rules have helped many qualify for mortgages after being denied for a loan by others.

What Asset-Based Mortgage Options Are Available To Veterans?

The HomePromise Asset-Based Refinance Program for Veterans is a great way to qualify for a mortgage. In many cases, you can use the assets you have in a bank account, mutual fund, or retirement account to make monthly payments. Our special program for Veterans makes loans possible that were not allowed in the past by other VA lenders.

Call 800-720-0250 to learn more about income requirements, asset-based real estate purchases and refinances, and the depletion of assets for income. While this type of lending often triggers high-interest rates with other lenders, the HomePromise lending program may help you achieve more favorable loan terms.