Use Assets As Collateral For Cash Out 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.

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 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.

Why is the ATR Rule important for Primary Florida Homes?

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.