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.
Angel Oak Asset Qualifier Loan
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 Mortgage Solutions LLC 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 Mortgage Solutions prides itself on its innovation, with its unique mortgage programs tailor-made for customer satisfaction. Customers can get conventional mortgages with Angel Oak, but many of their clients look for financing when they do not fulfill the requirements for traditional loans. Therefore, Angel Oak addresses the archaic elements of the traditional lending system to give customers more choices.
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 its 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. Some require specific debt-to-income ratios, while others have income requirements. The asset qualifier home loan is an ideal type of loan 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 like stocks and bonds are the primary requirement, there is no rule against combining additional income with total assets to qualify for the loan. Assets and income will strengthen your mortgage application and can help you secure more capital. It is also important to note that additional documentation may be required during the application process. Asset qualifier home loans may require more documentation if you have your liquid assets spread across numerous accounts, but you won’t have to worry about taxable income and pay stubs holding you back.
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.
These loans give homeowners enough time to get a side hustle or work at another job to make ends meet. The assets can also rise in value before you sell them. Taking out a 30-year fixed-rate mortgage gives your assets more time to grow before you have to sell them for the next loan payment. In addition, these loans give homeowners flexibility over when they sell their assets and how they cover monthly payments. Traditional banks and credit unions do not provide this type of versatility for their customers.
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. Angel Oak uses 60 months for its calculations. As with any loan product, there has to be an appraisal of the property to determine the value.
Benefits of Asset Qualifier Loans
Asset qualifier loans are becoming increasingly popular, and it’s easy to see why. You don’t have to sell all of your assets to make an all-cash offer on a property. Investors with plenty of assets sitting on the sidelines can still capitalize on compounded growth while buying their first or next homes. Unfortunately, a considerable number of people are left out of traditional loans because of the strict guidelines, even if they can comfortably keep up with monthly loan payments. An asset qualifier loan is a specific product tailored for these individuals, and it has several advantages:
Fewer Requirements
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 since you use investments to cover asset depletion loan payments. 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.
Angel Oak Asset Qualifier Loan
Mortgage Financing Option For Homebuyers With Liquid Assets
Flexible Terms
Most asset-based lenders offer a great deal of flexibility and competitive rates in their product offerings. However, 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. You can get a 30-year fixed-rate loan to minimize your monthly payments. Borrowers can also refinance their loans in the future to further minimize the impact of monthly payments.
Quick to Obtain
Provided you meet the requirements, you’ll get your asset-based loan quickly. The application process and everything involved typically move at a faster pace compared to conventional loans, which can take a few months. 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. A quick closing can be critical to make yourself more attractive to a home seller with multiple bids.
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 700
- 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 fill out their form. After you submit your details, one of Angel Oak’s licensed mortgage professionals will answer all of 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 Mortgage Solutions 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-9s 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 Mortgage Solutions 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.
- 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 conventional home loans, FHA home loans, USDA home loans, and VA home loans. The government typically guarantees these loans, but they are available through Angel Oak.
Angel Oak Asset Qualifier Loan
Mortgage Financing Option For Homebuyers With Liquid Assets
