If you are looking to purchase or refinance your home but don’t qualify for traditional mortgage loans, you don’t have to worry anymore. Even if you cannot prove a steady income, there’s always something for you, an asset qualifier loan. This type of loan is based on liquid assets such as retirement accounts, savings accounts, or even investment accounts like stocks and mutual funds.
Mortgage Financing Option For Homebuyers With Liquid Assets
Keep reading to learn more about the Angel Oak asset qualifier loan and why it’s a great option to consider.
About Angel Oak
Angel Oak Home Loans is a full-service lender with a variety of mortgage financing solutions for its borrowers. The company provides a wide range of traditional and non-traditional mortgage products to meet the borrowers’ individual needs. Angel Oak Home Loans prides itself on its innovation, with its unique mortgage programs tailor-made for customer satisfaction.
Their lending approach comprises the retail and consumer direct platforms. Through the retail lending platform, licensed mortgage originators work with borrowers looking to purchase or refinance in the Southeast, Eastern, and Western regions. The consumer direct platform works through their digital lending platform, which generates leads and integrates the customers with the Angel Oak loan products directly.
What is An Asset Qualifier Home Loan?
An Asset Qualifier Loan is a loan product for homebuyers who do not meet conventional loan guidelines but have sizeable assets that can be liquidated without any restriction. This way, homebuyers can qualify for a mortgage using their assets in lieu of a steady income.
Various loan products have different stipulations. This type of loan is ideal for self-employed borrowers, real estate investors, retirees, and virtually anyone whose employment status renders them unable to qualify for traditional home loans.
While liquid assets are the primary requirement, there is no rule against combining additional income to qualify for the loan. It is also important to note that additional documentation may be required during the application process.
Is An Asset Qualifier Home Loan Right For You?
Asset qualifier programs are the perfect means for people with significant assets to secure a loan. If you are filling out loan applications and don’t qualify for QM loans due to a high debt to income (DTI) ratio or a lack of employment or income, the asset qualifier loan can help you purchase or refinance your dream home.
The details of the asset qualifier loan will vary depending on the lender. Lenders typically determine the loan amount you’ll qualify for by dividing your assets over 36 months, while others divide them over 60 months. As with any loan product, there has to be an appraisal of the property to determine the value.
Mortgage Financing Option For Homebuyers With Liquid Assets
Benefits of Asset Qualifier Loans
Asset qualifier loans are becoming increasingly popular, and it’s easy to see why. A considerable number of people are left out of traditional loans because of the strict guidelines. Asset qualifier loan is a specific product tailored for them, and it has several advantages:
Qualifying for asset qualifier loans is a lot easier compared to traditional mortgage loans. Conventional loans require borrowers to have a steady 2-year work history, with supporting documents like paystubs and W-2s. On the flip side, you only need liquid assets and proof of ownership to qualify for asset qualifier loans.
You do not need any employment or income information to qualify for the home loan. There is also no requirement for debt to income ratio, making the whole process a lot more seamless. As such, it is the perfect option for anyone unemployed or retired.
Most asset-based lenders offer a great deal of flexibility and competitive rates in their product offerings. The product is specifically designed for people who don’t fit inside standard guidelines, so there’s relatively more wiggle room with this type of financing.
The loan terms are typically determined based on the size of your assets. The assets used are also subject to seasoning requirements. This means that they have to have been in the borrower’s account for a period between 2 and 6 months. Like any other loan product, existing debts are reduced from the average monthly income level.
Quick to Obtain
Provided you meet the requirements, you’ll get your asset-based loan quickly. The application process and everything involved typically moves at a faster pace compared to conventional loans. As soon as you provide the documentation required and all the appraisals are done, you can get your loan in just a few weeks. For this reason, these types of loans are known to have quicker closing times than other home loan products.
Requirements to Get An Asset Qualifier Loan with Angel Oak
The following is required to qualify for an Angel Oak Asset Qualifier Loan:
- A minimum of $500,000 in assets post-closing
- A credit score of at least 720
- Eligible assets include checking and savings accounts, retirement accounts, and investment accounts like stocks and mutual funds.
- All assets must be sourced and seasoned for at least six months
How to Enquire About Angel Oak Asset Qualifier Home Loan
If you need additional information regarding the Angel Oak Asset Qualifier loan and how to apply for one, visit the Angel Oak website and get in touch with a licensed mortgage professional who will answer all your queries and walk you through the entire process.
Aside from the Asset Qualifier Home Loan, there are several other mortgage loan options offered by Angel Oak Home Loans LLC. They include the following:
- Bank Statement Loan: This loan product is ideal for self-employed borrowers who want to buy or refinance a home. Eligible borrowers can use their personal or business bank statements to qualify for a home loan. Additional documents are needed to determine eligibility.
- 1099 Income Loan: This particular option is for self-employed borrowers who are 1099 workers. This is an underserved group consisting of workers like freelancers and contractors whose W-9’s do not qualify for a mortgage under Agency guidelines. It allows borrowers to use 1099 earning statements instead of tax returns to be eligible for home loans.
- Investor Cash Flow Loan: This loan product uses a property’s cash flow to qualify for a home loan. It allows investors to grow their real estate portfolios as tax returns and employment information is not required to qualify.
- Jumbo Loan: The Angel Oak Home Loans Jumbo program is for homebuyers who just miss prime qualifications. Jumbo loans are for home purchases exceeding the conforming limit set by the Federal Housing Finance Agency. The program consists of Gold Prime, Prime Jumbo, and non-QM Platinum Jumbo.
- ITIN Mortgage Loan: The Individual Tax Identification Number (ITIN) loan program is for borrowers who live in the United States but do not have Social Security Numbers (SSN). Homebuyers with ITIN cards can get this loan provided they meet the requirements.
- Foreign National Program: This loan product is designed for borrowers who live outside the United States. With this loan program, borrowers get greater flexibility when buying or refinancing. Qualification for this loan depends on the property’s cash flow instead of income.
- Traditional Home Loans: Angel Oak also offers traditional mortgage products like the conventional home loan, FHA home loan, USDA home loan, and VA home loan. The government typically guarantees these loans, but they are available through Angel Oak.