We help Michigan borrowers leverage their full financial picture, not just what shows up on a W-2.
Here’s a real-world example of how asset utilization can make a difference:
- Borrower purchasing a second home in Michigan
- Owns a primary residence and two investment properties
- Loan amount: $359,000
- Loan-to-Value (LTV): 80%
- FICO score: 711
- Debt-to-Income (DTI): 57% based on traditional income
- Retirement assets: $790,000
On paper, the borrower’s DTI was too high for many conventional loan programs, even with solid credit and significant assets.
The Non-QM Solution: Asset Utilization as Income
Our Non-QM asset utilization program allowed this borrower to qualify by converting a portion of their retirement assets into usable qualifying income, without liquidating the account.
Here’s how it worked:
- The borrower provided a 6-month statement for the retirement account
- 70% of the retirement balance was eligible for calculation
- That amount was divided over 84 months to create additional monthly income
- The supplemental income reduced the DTI to within the program’s 50% maximum, allowing the loan to move forward
Most importantly, the borrower kept their retirement account intact and continued earning interest, no forced withdrawals, no penalties.
Asset Utilization Loans in Michigan
Michigan has a growing number of borrowers who are:
- Asset-rich but income-limited
- Self-employed or semi-retired
- Real estate investors expanding their portfolios
- Second-home buyers with complex finances
Conventional underwriting often overlooks these borrowers. Non-QM lending fills that gap by focusing on ability-to-repay.
Asset Utilization Program Highlights
- Minimum FICO: 660
- Loan amounts: $100,000 to $5 million
- Eligible transactions: Purchase and rate-and-term refinance
- Asset eligibility:
- Checking & savings accounts: 100%
- Stocks & bonds: 80%
- Retirement accounts: 70% (regardless of borrower age)
- Trust accounts: 100% when the borrower is the sole beneficiary
A Smarter Path to Michigan Homeownership
If you have strong assets but your income doesn’t tell the whole story, a Non-QM asset utilization loan could be the key to qualifying.
Contact us to learn more about our non-QM loan programs that help many borrowers with mortgage financing.
