Manhattan Beach, Calif.-based Kinecta Federal Credit Union has launched a new mortgage program that enables high-net-worth borrowers with significant liquid assets – e.g., self-employed and retired individuals – to use a percentage of those assets as income for qualifying purposes. The new Asset Utilization Loan Program is tailored to the credit union's 5/1, 7/1 or 10/1 jumbo adjustable-rate mortgage products.
Considered as eligible assets for the new loan program are checking, savings, CDs, stocks, bonds, 401k, IRAs and insurance policy surrender values. All must be fully documented and held in U.S. financial institutions, Kinecta says. The credit union will also accept annuities, trust funds and hedge funds if there is evidence that the funds are available to the borrower.
‘This is a valuable niche and a great opportunity for both our retail members and our wholesale business partners who have clients with strong credit histories and financial backgrounds but are hampered by complex income situations,’ says Todd Helmerson, director of Kinecta's wholesale loan production.
