21 Mar ASSET DEPLETION/LOW RATE
Borrowers with limited income on paper, but an abundance of assets wanted to purchase a new home. Because of a slight credit blip, we had to move through two transactions to achieve the clients’ low-rate goal. On both loans we applied asset depletion (the lender divides the approved asset total by the fixed number of months on the loan) to increase borrowers’ monthly income. Six months after closing the borrowers’ purchase loan, their credit score had risen to a level that enabled us to facilitate a refinance that provided them with the low 30-year fixed rate they originally wanted.