Asset Dissipation Loan
An Asset Dissipation Loan is a very useful option for those with limited income, but ample investments. It essentially let’s you use your assets as proof of income, allowing you to do things like refinance your current home or buy a lakehouse during retirement.
An asset dissipation loan does not depend on your monthly cash flow. Borrowers do not need to demonstrate a source of income or employment. Rather, they only need to show that they have sufficient assets like stocks, bonds, or retirement accounts. Borrowers are also not required to liquidate their assets to come up with the cash up front.
For prospective borrowers asset depletion calculations are based on a combination of cash, retirement, and investment monies, divided by 360 payments. Assets are generally qualified with 100% of cash accounts and 70% of retirement and investment accounts (100% of retirement funds may be used if the borrower is over 59 ½ years old).
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