A Freddie Mac example
Under an applicable 180-month calculation, $500,000 divided by 180 equals about $2,777 per month before required deductions and eligibility adjustments. Confirm the current guide for the loan.
Credit and Income
Using eligible assets as qualifying income
Some programs convert eligible assets into monthly qualifying income through an asset-depletion calculation. The formula, asset haircut, deductions, eligibility, and required remaining funds vary by program.
Not every dollar counts
Funds needed for closing, reserves, taxes, penalties, borrowed funds, retirement access, and ineligible asset types can reduce the amount used.
Documentation matters
Ownership, account history, valuation, liquidity, continuance, and source may need verification.
Revisit the options
Borrowers with significant assets and limited traditional income may benefit from a new review, but the current program and complete calculation must support it.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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