March 6, 2019

Requirements for traditional qualified mortgage home loans can be fairly strict and limiting. These rules don't represent everyone's financial situation, and there's more than one way to be ready to purchase a new home. This is where other mortgage options prove their worth. Trusted financial institutions offer these non-agency loans to suit unique circumstances, including situations when a person's assets are a better reflection of their financial health than their income.

Qualifying with financial assets

If you fit into one of the scenarios described below, the SmartFunds loan, part of the SMART series, may be your ideal path to homeownership. This loan, offered to those with FICO credit scores 680 and above, is meant to reflect situations when you have money in the bank, but may be unable to secure a qualified mortgage because of the employment and income clauses in traditional loans. The most common sets of circumstances that lead to this type of savings-to-income ratio include:

Retirement

If you've retired from full-time work but have enough money and other assets stored away to finance a new home, the SmartFunds loan may be the perfect match for your situation. The qualification process considers your retirement and savings accounts, alongside investments, to determine whether you're eligible. If you've kept your credit strong and have more than $500,000 in assets set aside, you may qualify. The loan can help you spend your post-retirement golden years in the house of your dreams.

Self-employment

When you work for yourself, it's not always easy to qualify for a loan under conventional income and employment rules. Why add on to the complexities of being your own boss by trying to find ways to qualify for a traditional mortgage? The SmartFunds loan is here to help you make a move into a new home, provided your personal finances are strong in ways that extend beyond monthly income. You may also find the SmartSelf mortgage product is more your speed - this is an even more laser-focused nontraditional loan based on the quirks of self-employment.

Investment

Is your financial strength better represented by your portfolio than by your monthly income? This may make you a good candidate for the SmartFunds loan - the qualification process looks for stocks, bonds and mutual funds alongside your own savings. A lender only offering more traditional loan problems may have trouble verifying your eligibility for a mortgage, but SmartFunds is designed for situations such as these.

Getting the mortgage you need

Going with a nontraditional loan doesn't mean losing out on the home of your dreams. The SmartFunds mortgage is available in a plethora of models to broaden your options. Whether you're buying a home or refinancing, and whether the house in question is your primary or secondary residence, you can apply for this specialized product. The upper value of the loan can reach $3 million based on your collection of financial assets, and the loan has both fixed- and adjustable-rate options, based on your preference and market conditions.

Having nontraditional finances doesn't mean you can't find a loan. It means you should look for the loan that's designed for you.