Pledged Assets Mortgage Program – Allowing Liquid Assets To Be Used As Collateral For Borrowers – San Diego, CA
Announcing the Pledged Assets Mortgage program designed to assist high net worth Borrower’s in their attempts to leverage their invested assets while still qualifying for a mortgage loan. Essentially, we allow the Borrower to “pledge” (hold as collateral) a portion of their assets in lieu of a down payment. Perhaps the best feature of this program is the fact that the Borrower does NOT need to move their assets away from their current Financial Advisor or Financial Company!
Pledged Assets Mortgage qualification guidelines are utilized to help Borrowers who have sufficient liquid assets, but prefer to allow their investments to continue growing for them even after the home is purchased! This loan is available through Jason E Gordon, San Diego Residential Mortgage Specialist. Please read below for more details:
Traditional Fannie Mae and Freddie Mac approval guidelines require specific Loan-to-Value (LTV) equity restrictions to ensure the Borrower has enough “skin in the game” when purchasing a home. Those who understand financial leverage methods of wealth accumulation can successfully identify the opportunity cost of a particular investment being lost if an Investor is forced to liquidate these assets in conjunction with a home purchase.
Specific advantages of the Pledged Assets Mortgage program include:
- Potentially avoiding capital gains taxes (consult your CPA for more details)
- Assets continue to grow from interest/dividends, allowing the Borrower to continue sweeping profits
- Any person may choose to pledge their assets on behalf of the Borrower (no gift letter required)
- Currently available in conjunction with Asset Depletion loans on a wide variety of different mortgage programs, including interest-only
- Loan amounts up to $10,000,000 (or higher on a case-by-case basis) with a minimum of 10% down payment (and no mortgage insurance)
- All pledged assets may remain with current investment company (no need to move the money and disrupt the current financial plan with the current Financial Planner)
- No alteration requirements to the assets themselves (the Borrower may continue to trade in the same portfolio provided the minimum value is maintained)
There are specific eligibility requirements of the Pledged Assets Mortgage program, including:
- Eligible assets must be managed by an Investment Broker/Dealer
- Eligible assets must be held in an account based in the United States (either by a US entity or a US branch of a foreign entity)
- Eligible assets do not include assets bought on margins, options, warrants, IRA assets, 401K assets, annuities, insurance benefits, 529 or other educational savings plans.
Eligible assets will be underwriten within 2 specific stability categories, yielding the following requirements:
- Stable Assets (savings money market, CD) require a pledge of 1:1
- Example: $1,500,000 of pledge use requires $1,500,000 worth of assets as collateral
- Volatile Assets (stocks, bonds, mutual funds) require a pledge of 2:1
- Example: $1,500,000 of pledge use requires $3,000,000 worth of assets as collateral
Release of Pledge – The loan may be paid down and the pledge may be released without triggering a pre-payment penalty at any time. If the property has increased in value rendering the Pledged Assets no longer relevant (typically after a period of roughly 36 months), the pledge may be released (under Underwriter discretion). In order to be eligible for release of pledge, the Borrower must be current on all loan payments with no delinquencies in the previous 12 months. Please contact Jason E Gordon, San Diego Residential Mortgage Specialist for more details.
Pledged Assets Mortgage loans are not for everyone! Among the requirements to consider are the following:
- $300,000 minimum loan amount (sorry, no exceptions)
- 40% debt-to-income ratio is needed
- Although no specific minimum FICO score is required, the Borrower must have reasonably good credit (subject to Underwriter interpretation)
- There are equity (also known as loan-to-value or LTV) restrictions in all Pledged Assets Mortgage loans, which depend on the type of loan transaction (purchase, rate/term refinance, cash-out refinance), along with property occupancy intentions (primary residence, second home, investment properties). All details are provided in the matrix below:
Additional Pledged Assets Mortgage underwriting guidelines apply, and are subject to change without notice. Please contact Jason E Gordon, San Diego Residential Mortgage Specialist (serving all parts of California).
Creative financing and make-sense underwriting guidelines still exist…you just have to know who to speak to in order to locate these programs! Contact Jason E Gordon, San Diego Residential Mortgage Specialist today if you are a Borrower (or are working with a Borrower) who may benefit from these approval guidelines!
As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), Jason E Gordon utilizes his advanced training to examine a prospective Client’s complete financial picture, while carefully listening to their overall goals. If it is mutually agreed that a new loan makes sense to pursue, Jason strives to make the entire loan process as seamless as possible. He truly believes that providing open communication and patient educational guidance to his Clients and Business Alliances has been a pivotal component to building his business, while enhancing his reputation in the Mortgage Industry as a Trusted Advisor. Visit www.jasonegordon.com for more information.
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For more information on topics like this, please feel free to visit www.MortgageStreetSmarts.com (an educational resource for Borrowers, Real Estate Agents, and Financial Professionals). Educational content provided by:
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