Pledged Assets

Pledged asset Jumbo mortgages are an attractive solution for Florida homeowners and homebuyers who have an extensive investment portfolio. It allows them to utilize these assets toward a down payment without having to sell – Florida luxury property owners seeking jumbo and super jumbo Florida mortgages can continue to maintain their long-term investment strategy and defer potential capital gains.

Pledged Assets  Jumbo Florida Mortgage Lenders

• Loans from $150K to $30MM+
• Unlimited Pledged Assets Cash-out amounts
• Unexpectedly low interest rates
• Flexible Jumbo -Super Jumbo mortgage underwriting approach

Pledged Assets The pledged asset program allows up to 90% financing of the property value (the lesser of the appraised home value or the purchase price).
The fee for pledged asset loans is $250.

Borrower Requirements:
The obligor (the party that pledges the eligible assets) does not have to be the borrower nor does the obligor need to have a family relation to the borrower.

Eligible Properties:
Primary Residences, Second Homes, and Investment Properties Not available in Washington DC, West Virginia, and Virginia.

Eligible Liquid Assets:

• Eligible Assets include stocks, bonds, CD’s, savings accounts and mutual funds.

• Eligible Assets must be managed by the jumbo Florida Mortgage Lenders approved RIAA, or  Invest.

• Eligible Assets must be held in an account based in the U.S., either by a U.S. entity or the U.S. branch of a foreign entity.

• Eligible Assets do not include assets bought on margin, options, warrants,

IRA assets, 401K assets, annuities, insurance benefits, and 529 or other education savings plans.

Securities Documentation
If securities are pledged, a review and approval of the securities is required:

• The borrower/obligor must execute the Pledge Agreement prior to loan funding; and

• The securities intermediary must execute the Account Control Agreement prior to loan funding.

• FR U-I Form must be completed and executed by borrower. Forms can be found at: https://www.federalreserve.gov/apps/reportforms/default.aspx

Pledge Amount:

The base pledge amount equals the equity requirement percentage multiplied by the property value (minus any equity or down payment). The Initial Pledge Amount equals the Base Pledge Amount multiplied by two hundred percent (200%), if non cash and one hundred percent (100%), if cash. The Minimum Pledge Amount equals the Base Pledge Amount multiplied by 168%.

• A Pledged Asset Account funded with 100% Cash Equivalent Assets has an Initial Pledge Amount and Minimum Pledge Amount equal to 100% of the Base Pledge Amount.

• Throughout the term of the pledge agreement, the obligor will be required to maintain a Pledge Account value equal to or above the Initial Pledge Amount. If the Pledged Account value ever falls to or below the Minimum Pledge Amount, the obligor will immediately be required to bring the Pledged Account value equal to or above the Initial Pledge Amount.

Example Pledge Amount Calculation:

• Loan amount requested is 90% of the value (lower of sales price or appraisal value); $1,000,000 value $900,000 loan

• Identify the available LTV per the matrix and calculate the notional loan amount at that LTV: (e.g. if max LTV is 70%, then the notional loan amount is $700,000; subtract this amount from the requested loan amount; and the difference is the base pledge amount required.

• If the borrower is pledging cash the pledge required would be $200,000, and, if securities, the pledge required would be $400,000.

• In this example, the actual LTV is 90% and the effective LTV is 70%).