Asset Depletion is a great option for divorcing clients who need to show additional information for mortgage qualifying purposes. (It’s funny how the term ‘Asset Depletion’ is exactly what the divorcing client is trying to avoid by obtaining a mortgage in the first place!)
Various investors have varying guidelines and requirements for asset depletion; however, typically assets may be used as income with the following guidelines.
Let’s look at the ability for John to purchase a new home after his divorce is final. Due to the fact that John has to pay Jane 50% of his gross income each month, he no longer qualifies for a new mortgage. However, John has an investment account with $500,000 in it. John may qualify for the new mortgage by amortizing the $500,000 over 36 months per investor guidelines – this gives Jim an additional $13,889 of monthly income for mortgage qualification purposes and does not typically require that John pledge these assets for security purposes either.
To better explore your options for obtaining a mortgage when going through a divorce, always work with a Certified Divorce Lending Professional (CDLP). The Tammi Lindley team is the only Certified Divorce Lending Professional team in Portland.
Contact us today at: 503.517.8641 or email@example.com.
The Lindley Team
Currently, The Lindley Team is the only Certified Divorce Lending Professional team in Portland, OR. Let us help equip you for the best possible outcome in relation to your mortgage and marital home.
Not a commitment to lock or lend. Terms and restrictions apply. Not all applicants will qualify. Mortgage Express, LLC. NMLS Company ID: 40831 | www.mtgxps.com | Licensed in OR/WA/CA. Licensing in CA by the Department of Business Oversight under the Residential Mortgage Act. Mortgage Express is an Equal Housing Lender. Questions and concerns may be directed to firstname.lastname@example.org, or 10260 SW Greenburg Road, Ste. 830, Portland, OR 97223.