QB SERIES 2

Asset Programs

Asset Ready - No DTI

Designed for the high net worth borrower. Qualify with assets rather than income!

Documentation

  • Two most recent consecutive asset statements
  • Assets must be seasoned 60 days prior to close
  • Source large deposits

Important Points

  • Assets must meet or exceed 100% debt obligation.
  • Assets from wholly owned business may be used.
  • Both Retirement and Non-Retirement asset accounts allowed.

Consider Penalties and Taxes

  • Penalty for early withdrawal ( 59 1/2 and Younger) Reduce principal balance of qualified retirement account by 10%.
  • Tax upon withdrawal If assets are held in a tax deferred qualified retirement account, reduce principal balance by 25%.

Retirement & Non-Retirement

  • Retirement Accounts: Accounts providing tax benefits by giving the opportunity to contribute pretax wages and the contributions and earnings grow tax deferred until withdrawal.
    • I.e. IRAs and 401(K)s.
    • Assets are taxed upon withdrawal penalties may apply for early withdrawal.
  • Non-Retirement Assets: Assets and accounts not eligible for tax deferral benefits. Contributions are made after tax.
    • I.e. Annuities, stocks, bonds, cash.
    • Taxes may be required for capital gains only. Penalties may apply for early withdrawal.

Asset Depletion - DTI is Calculated

Designed to supplement documented income which may be inadequate to quality.

Documentation

  • Two most recent consecutive asset statements
  • Assets must be seasoned 60 days prior to close
  • Source large deposits

Important Points

  • Easy calculation! Qualifying income is total asset depleted over 84 months!
  • No asset restrictions!
  • Both Retirement and Non-Retirement assets allowed.

Consider Penalties and Taxes

  • Penalty for early withdrawal ( 59 1/2 and Younger)
    Reduce principal balance of qualified retirement account by 10%.

Retirement & Non-Retirement

  • Retirement Accounts: Accounts providing tax benefits by giving opportunity to contribute pretax wages and contributions and earnings grow tax-deferred until withdrawal.
    • I.e. IRAs and 401(K)s.
  • Non-Retirement Accounts: Accounts not eligible for tax-deferral benefits. Contributions are made after tax.
    • I.e. Annuities, stock, bonds, cash.

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Disclosure:
All lending products are subject to credit & property approval. Rates, program terms & conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions & limitations apply. Quontic Bank name & logo are registered trademarks. © 2019 Quontic Bank. All rights reserved.

Information is accurate as of the date listed below and may change without notice.

May 19, 2020