Unlocking Possibilities: Asset Qualifier Income Loans Explained

Minimum Required Asset:

• Greater of

✓ Minimum Post Closing Asset Value of $300,000, -OR-

✓ Total Loan amount + cash required to close + reserve.

Asset History:

• Most recent 3 months statements.

• Asset levels in the verified accounts are expected to be consistent and sustained over the three (3) month period. Increases or decreases greater than 15% over the three (3) months period must be explained by the borrower. Additional supporting documentation may be required.

Eligible Asset Type and Utilization:

• Bank Deposit, e.g., checking and savings accounts.

✓ Asset Qualifier Income (AQI) may be joint accounts, but all account holders must be borrowers on the loan.

✓ A joint account with a non-borrowing account holder may be used to meet funds to close and/or reserve requirements.

• Publicly traded instruments, e.g., stocks, bonds, ETFS, mutual funds, etc.

✓ 100% of most recent documented value to determine qualifying income (AQI).

✓ 100% of most recent documented value may be considered for reserves.

✓ Funds used for closing must be liquidated.

• Fully vested retirement accounts or annuities.

✓ Borrowers who are 59½ or more years old may use 100% of documented value to determine qualifying income (AQI).

✓ Borrowers who are less than 59½ years of age may use 70% of the documented value to determine qualifying income

(AQI).

✓ 100% may be considered for reserves.

• VOD – must cover 3 months average balance.

Reserves:

• Reserves are required for subject property only.

For more information or to go over your own scenario, please contact mc at 408-393-2068