Not all borrowers fit neatly into the boxes required by traditional lenders. Many people have solid financial foundations, yet they don’t receive a regular paycheck. Retirees, investors, self-employed individuals, entrepreneurs, and those living off their investments may not have the steady income that typical mortgage lenders look for. So, how do you get a mortgage without a job? The answer lies in asset-based solutions, specifically A&D Mortgage’s Asset Utilization Program, which allows some borrowers to leverage their assets instead of traditional income sources to qualify for a home mortgage.

This article was originally published on April 13, 2022.

The Problem: Why Traditional Loans Don’t Work for Everyone

Most traditional lenders require steady proof of income, such as pay stubs, tax returns, or W-2s, to approve a mortgage. For many people, especially those who are self-employed, retired, or living off investment income, this creates a challenge. These individuals often have significant financial assets but lack the verifiable monthly income that traditional lenders demand. As a result, even though they are financially responsible, they may not meet the criteria for a conventional mortgage.

For example, retirees often live off their savings or investment income, but they no longer receive a monthly paycheck. Entrepreneurs and investors may also have irregular or nontraditional income streams, making it difficult to provide the required documentation. Without a steady job or income, traditional loans become difficult to obtain.

So, how can these financially responsible individuals secure a mortgage? The solution is simple: through asset utilization, a program that considers their wealth in assets rather than income from employment.

Asset Utilization:
Boost your client’s options!

• Minimum FICO 599
• Up to 80% CLTV
• Checking, savings, stocks, bonds

Grow Your Services with A&D Mortgage!

See Program Details

How to Get a Mortgage Without a Job

If you’re wondering how to get a mortgage without a job, the answer lies in leveraging other financial resources. Lenders today offer several alternatives that allow individuals to qualify for home loans without relying solely on employment income. Here are a few ways:

1. Bank Statement Loans

Bank statement loans allow self-employed individuals or those with irregular income to qualify for a mortgage by providing 12-24 months of bank statements rather than traditional proof of income. These loans are ideal for freelancers, business owners, or gig workers.

Bank Statement:
Empower your clients!

• The perfect fit for self-employed borrowers
• Up to 90% CLTV, loans up to $4M
• Low FICO options (from 599)

See Program Details

2. Asset Depletion Loans

This loan program allows borrowers to use their liquid assets as income to qualify for a mortgage. The lender calculates the borrower’s monthly income by dividing the total value of their liquid assets by a set number of months, typically 60.

3. Co-signers

In some cases, borrowers can have someone else (a spouse or family member) co-sign their mortgage. The co-signer provides the necessary income verification, taking on the financial responsibility should the primary borrower fail to make payments.

However, a more straightforward and flexible option for high-net-worth individuals is A&D Mortgage’s Asset Utilization Program, which is designed specifically for borrowers without traditional income sources.

The Asset Utilization Loan Program: A Solution for Non-Traditional Borrowers

A&D Mortgage’s Asset Utilization Program allows individuals with substantial assets to qualify for a mortgage without providing proof of employment income. Instead of relying on pay stubs or tax returns, borrowers can use their assets to demonstrate their financial capacity. This is an ideal solution for high-net-worth individuals, retirees, self-employed individuals, and investors who have significant savings or investment portfolios but do not receive a regular paycheck.

Here’s how it works:

• The borrower’s total liquid assets are divided by 60 months, and the result is used to calculate their qualifying monthly income.
• Eligible assets include checking and savings accounts, stocks, bonds, money market accounts, mutual funds, and retirement accounts such as 401(k)s and IRAs.
• Borrowers do not need to cash out these assets; they are simply used to demonstrate financial security.

This program offers high flexibility for those whose financial strength lies in their assets, not their income.

Features and Benefits of the Asset Utilization Loan

A&D Mortgage’s Asset Utilization Loan stands out due to its unique features tailored to those with substantial assets but irregular or no income from a traditional job. Some of the program’s key features include:

• Loan amounts up to $4 million. Borrowers can secure high-value loans, making this program ideal for those purchasing luxury homes or investment properties.
• Debt-to-Income (DTI) ratio up to 55%. Higher DTI allowances provide flexibility for those with significant expenses but a strong asset base.
• Cash-out refinancing up to 80% Loan-to-Value (LTV). Borrowers can access up to 80% of their home’s value for cash-out refinancing.
• Qualifying assets divided by 60 months: The borrower’s qualifying monthly income is calculated by dividing their total assets by 60.
• 100% of checking, savings, and investment accounts are eligible: Borrowers can count all of their liquid assets, including stocks, bonds, and 70% of retirement accounts, toward their mortgage qualification.
• Low minimum FICO score of 620: The program is accessible to a wide range of borrowers, including those with less-than-perfect credit.

Who Should Consider the Asset Utilization Loan?

This loan is ideal for individuals who don’t fit the traditional borrower profile but have significant financial assets. You should consider an Asset Utilization Loan if you:

• Are retired and living off your savings or investment income.
• Are a self-employed entrepreneur with inconsistent or irregular income.
• Have substantial investment portfolios but no steady paycheck.
• Are an investor looking to leverage your assets to purchase a home or refinance.
• Are a high-net-worth individual who has significant wealth but cannot easily verify income.

For mortgage brokers, this program is an excellent option for clients who may not meet the strict income documentation requirements of conventional loans but have a substantial asset base. The flexibility of this program allows brokers to help their clients secure financing even when traditional lenders may not approve them.

How Brokers Can Help Clients Get Approved

Brokers play a key role in guiding clients toward the right mortgage solution. For clients with significant assets but irregular income, the Asset Utilization Loan is an ideal option. Brokers should focus on:

• Assessing the client’s assets. Help clients gather documentation on all their liquid assets, including checking and savings accounts, stocks, bonds, and retirement accounts.
• Educating clients. Explain how their assets can be used to qualify for a mortgage, even if they don’t have traditional income.
• Navigating the application process. Ensure that clients understand the requirements for asset utilization, such as the 60-month calculation for monthly income.

A&D Mortgage also provides fast turnaround times, making it easy for brokers to help clients secure financing quickly.

Conclusion

For those wondering how to get a mortgage without a job, A&D Mortgage’s Asset Utilization Program provides a straightforward solution. By allowing borrowers to use their assets to qualify, this program opens up new possibilities for retirees, investors, and self-employed individuals. Whether you’re a broker looking to help clients secure financing or a potential borrower searching for mortgage solutions, this program offers the flexibility and support needed to navigate non-traditional financial situations.

Contact A&D Mortgage today to learn more about how our Asset Utilization Loan Program can help you or your clients qualify for a mortgage without traditional employment income.