PROGRAM #3 | ASSET PROGRAM

Program uses verified assets instead of income. No employment or income needed. This program works well for high net worth folks with significant liquid assets. 

Purchase Loans for Primary Residence (1-4 Units)

• 680+ Credit Score requires 10% Down Payment
• Under 680 Credit Score requires 20%+ Down Payment

Purchase Loan for Investment Properties (1-4 Units)

• 680+ Credit Score requires 10% Down Payment
• Under 680 Credit Score requires 20%+ Down Payment

Cash out refinances (1-4 Units)

• 680+ Credit Score requires 85% loan to value (up to 85% of appraised home value)
• Under 680 Credit Score requires 70% loan to value (up to 70% appraised home value)

Eligible Assets

• Bank Deposits – Checking, Saving, Money Market accounts = 100%
• Publicly traded stocks and bonds = 90% (stock options not allowed)
• Mutual Funds = 90%
• Retirement Accounts
• 401(K) plans or IRA, SEP or KEOUGH accounts = 80%

How Does the Asset Program Work?

We use the formula below to calculate if you qualify for the loan. Basically the total assets minus mortgage loan amount need to be higher than 60 months worth of all the borrowers other debts. This can get a little complicated so please contact us for details. 

Loan amount: $400,000
Closing Costs/Prepaids: $15,000
Principal and Interest (P & I) for subject = $2,800

Verified Assets:
• $250,000 Checking and Savings (100% usable) = $ 250,000
• $200,000 Stocks and Bonds (90% usable) = $180,000
• $300,000 401K (80% usable) = $240,000
• $50,000 Mutual Funds (90% usable) = $45,000
Total allowable assets = $715,000

$715,000 (allowable assets) minus $415,000 (loan amount + closing costs/prepaids) = $300,000 residual assets

Total of monthly debt (revolving, installment, alimony/child support, hazard insurance, property tax on the subject property, etc.) excluding subject P&I = $2800 (EXAMPLE)
$2,800 X 60 months = $132,000+ $8,400(required reserves) = $140,400

Since the $300,000 residual assets are more than the required funds of $140,400 to cover all other, this applicant would be qualified. 

WHY WORK WITH US

We have competitive rates. We have the ability to shop your loan with multiple investors to offer our clients the most aggressive rates on the market. 

We typically charge less fees than other lenders. Our goal is to provide our clients with the best service and lowest closing costs possible. We’re so competitive that we don’t mind if our customers shop around. 

We’re a local Denver lender who is familiar with Colorado laws and regulations. We exclusively do loans in the State of Colorado. 

If you have been denied for a traditional loan in Colorado because you don’t show enough income, these programs may be a great alternative for you. Interest rates are slightly higher than traditional loans but we can be very competitive depending on credit score, down payment and loan to value.

Please contact me for more information or to review a scenario at 720-535-4321. You can also email us at Apply@THLmortgage.com. In most cases we can give you a general idea if you qualify for the program over the phone. In some cases we will need to collect your documents and review them to see if you qualify. We do not charge any application fees and there are no upfront costs.