Asset Depletion

Overview

• Borrowers assets are used to help in DTI qualification (if assets are enough to qualify, tax returns not required)
• Assets do not need to be withdrawn or pledged to use the income (only 2 months of bank statements are required)
• Self-employed and W2 borrowers are okay
• Can be combined with Full Doc income
• Can be combined with Bank Statement income if assets are from an account not being used for bank statement calculation
• No age limitations

How to Calculate Monthly Income

The following assets are considered eligible and can be utilized to calculate income:

• 100% of checking, savings, money market accounts, and cd’s
• 100% of the value of stocks (must be fully vested) & bonds
• 100% of retirement assets (if borrower is not of retirement age reduced to 60%)
  If you are unsure about a particular asset, email us.

Down payment, closing costs, and reserves if applicable must be excluded from the balance before calculating income.
Monthly income is: Total Assets divided by 120