High-net-worth borrowers do not always fit conventional mortgage guidelines. A borrower may have substantial liquid assets and excellent credit but lack the traditional employment or monthly income documentation required by most lenders. We recently helped fund a $4.15 million super jumbo purchase loan for a single-family second home in Atlantic Beach, New York. The borrower qualified through an Asset Allowance program using eligible assets rather than reported employment or income.
Loan Details
- Location: Atlantic Beach, New York
- Loan program: Montage – Asset Allowance
- Loan amount: $4,150,000
- Transaction type: Purchase
- Property type: Single-family residence
- Occupancy: Second home
- Loan-to-value: 65%
- Credit score: 808
- Loan structure: 7/6 ARM
- Term: 30-year interest-only structure
Qualifying With Assets Instead of Income
Traditional mortgage underwriting generally relies on employment, tax returns, pay stubs and other documentation to establish a borrower’s monthly income. That approach may not accurately represent the financial strength of wealthy borrowers whose resources come from investments, retirement accounts, business interests or accumulated assets. For this transaction, the borrower qualified using assets alone. No employment or income was reported on the Uniform Residential Loan Application, commonly known as the Form 1003. The Asset Allowance program evaluated the borrower’s eligible assets and overall financial profile to establish the capacity to repay the loan. This provided a financing path without forcing the borrower into conventional income guidelines that did not reflect their actual financial position.
A Super Jumbo Solution for a Second Home
The borrower was purchasing a single-family residence in Atlantic Beach as a second home. With a $4.15 million loan representing 65% of the property’s value, the transaction required a lender capable of handling both the super jumbo loan amount and the alternative qualification method. The borrower’s 808 credit score, significant assets, and substantial equity contribution supported a customized 7/6 adjustable-rate mortgage with an interest-only structure.
Financing for High-Net-Worth Borrowers
- Retired individuals with significant assets
- Investors with irregular income
- Business owners who minimize taxable income
- Borrowers living from investment portfolios
- Individuals between employment positions
- High-net-worth borrowers purchasing luxury or second homes
Contact us to discuss available super jumbo and asset-based financing options.
