Asset Depletion Mortgages in Florida

Do Fannie Mae and Freddie Mac allow asset depletion?

Both have their own asset-based qualifying guidance. Fannie Mae allows certain employment-related assets, such as retirement accounts and severance, to be used as qualifying income. Freddie Mac allows certain retirement, bank and securities accounts to be used as a basis for repayment. Both carry conditions on property, transaction and assets, and they tend to be narrower than non-QM programs.

Which assets count for an asset based mortgage?

Cash accounts usually count in full. Stocks, bonds and mutual funds are commonly counted at a reduced value, and retirement accounts may be counted after allowing for taxes or penalties if you can access them. Assets that are pledged, illiquid or hard to value, such as business equity or real estate, are generally excluded. Each program sets its own list.

Do I have to withdraw money every month?

No. The calculation measures your capacity to pay from assets; it does not require you to draw down your accounts on a schedule. You can pay the mortgage from any source, including investment returns, a pension or Social Security. The lender simply wants confidence that your assets are large enough to support the payment over time.