Assets As Collateral Florida Mortgage Lenders
ATR stands for “Ability to Repay”. The Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule requires Florida mortgage lenders to verify the borrower’s ability to repay a mortgage before closing. The Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) requires a creditor to make a reasonable, good-faith determination of a consumer’s ability to repay a residential mortgage loan according to its terms. The ATR/QM Rule also defines several categories of “qualified mortgage” loans, which obtain certain protections from liability.
NOTE: Down payment, closing costs, and reserves must be excluded from the Asset balance before calculating income.
Qualify by dividing assets over 60 months!
- Up to 80% LTV – Purchase / Rate and Term
- Up to 75% LTV Cash-out Refinance
- Assets seasoned for a minimum of three (3) months
- Minimum FICO 600
- Owner-Occupied, 2nd home or Investment
- Qualify with:
- Qualify by dividing assets over 60 months!
- Just Assets OR
- Blended with One or Two Yr. Full Doc, Bank Statements,WVOE, 1099 or P&L
Asset-Based Allowable Assets For Calculation:
- 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 the borrower is not of retirement age of 59.5, then reduced value to 50%)
- If you are unsure about a particular asset, please contact us.
Asset-Based Florida Mortgage Loans
- No employment, No Income, No Debt to Income Ratios
- Primary Residence:
- Up to 85% LTV for Purchase
- Up to 80% for R/T Refinances
- Up to 70% LTV for Cash-Out Refinances
- Investment Properties and Second Homes:
- Up to 80% LTV for Purchase
- Up to 75% for R/T Refinances
- Up to 70% LTV for Cash-Out Refinances
- 600 Minimum Score
- 5 Years seasoning foreclosure, short sale or bankruptcy
- Loans up to $5 million (minimum loan $200,000)
- No 4506 / IRS Tax Transcripts required
- Primary, Secondary and Investment Properties allowed
- Non-warrantable condos considered
- Asset Depletion Income can be coupled with other income
- Dividends and interest earned from assets used in the calculator cannot be used to qualify
- All collateral types are allowed
- All assets eligible for the program at 100% face value if borrowers are 59.5 and older
- Retirement funds are calculated at 50% of face value if borrowers are less than 59.5 years old
- Assets held in annuities and cash value of life insurance policies are ineligible for the asset depletion program
- Primary homes only
- Single-family, Condo, Townhouse Condotel Manufactured homes, Rurual OK
- 2 months’ bank statements showing liquidity ( asset cannot be depleting.
How does the ATR Rule work?
- The ATR/QM Rule applies to most closed-end residential mortgage loans.
- Lenders must make a good faith determination of a borrower’s ability to repay the loan.
- Lenders must consider a variety of factors, including income, assets, debt, and employment.
- Lenders must verify information using reliable third-party records.
- The ATR/QM Rule also defines “qualified mortgage” loans, which receive certain liability protections.
- The ATR/QM Rule helps protect borrowers from foreclosure by ensuring lenders are sufficiently protecting them.
- The ATR/QM Rule also limits prepayment penalties and requires record-keeping for up to three years after closing.
The Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) requires a creditor to make a reasonable, good-faith determination of a consumer’s ability to repay a residential mortgage loan according to its terms. The ATR/QM Rule also defines several categories of “qualified mortgage” loans, which obtain certain protections from liability.
