Qualifying for a Mortgage without Income Is Possible

Income is not the only way to qualify for a home loan. If you have assets, such as money in your bank account, retirement accounts, stocks and bonds, you can qualify for a mortgage.

Using asset dissipation – also known as asset-based lending – you can even qualify for a long-term fixed-rate mortgage.

To figure out what your assets equal in qualifying income:

• If you’re over age 59½, take 80 percent of your total assets and divide that number by 180.
• If you’re under age 59½, take 70 percent of your total assets and divide that number by 180.

For example, if you have:

• If you’re 60 years old, you would take 80 percent of that $1 million, so $800,000, and divide it by 180 months to get a “qualifying monthly income” of $4,445.
• If you’re 50 years old, you would take 70 percent of that $1 million, so $700,000, and divide it by 180 months to get a “qualifying monthly income” of $3,889.

Even if you’re retired, you can still qualify for a mortgage, and your nest egg can help you do it!

Maximum 42 percent debt-to-income and minimum 700 FICO credit score. Other restrictions and product guidelines may apply. Contact your Bell Bank Mortgage loan officer for details.

What to check out next

• What are Mortgage Points and Should I Pay Them?
• Mortgage Shopping? Know Your Rates
• Qualifying for a Mortgage May Be Easier Than You Think