ATR (ability to repay) in Full – Liquid Assets To Cover Loan Amount, No Income Required

Many of our clients at MortgageDepot initially believe that only those individuals who have substantial monthly income could qualify for a mortgage loan to buy a new home, but this is not correct. Lenders are legally required to verify that an applicant has the ability to repay the amount borrowed. With many loan programs, the ability to repay is confirmed through a review of the applicant’s income in comparison to monthly debt payments, but liquid assets may be reviewed as an alternative through some programs at MortgageDepot.

Are you wondering what it takes to be approved for the loan amount that you need? Many factors must be reviewed by the underwriter. If you do not or cannot document sufficient regular income, some of the other factors that would be reviewed and considered collectively are:

• Credit scores
• Verified liquid assets
• The requested loan amount
• Balances on other outstanding debts

If you do not have a sufficient amount of liquid assets to qualify, you may be wondering if you could qualify based on the amount of monthly income that you can verify. Factors what would be considered include:

• Credit scores
• Verified monthly income
• The monthly payment for the new mortgage
• Other minimum monthly debt payments
• The monthly debt-to-income ratio

As you can see, many factors will be taken into account during the underwriting process regardless of whether income or assets are being reviewed. The best way to determine with certainty what loan amount you may qualify is to apply. Our team at MortgageDepot is ready to answer your questions and can assist with your application.

Get in touch with one of our loan consultants for more information.