Kinecta Federal Credit Union has launched a new Asset Utilization Loan Program for its mortgage lending division. Tailored to Kinecta’s 5/1, 7/1 or 10/1 Jumbo ARM, the new program enables high net-worth borrowers with significant liquid assets, including self-employed and retired individuals, to use a percentage of those assets as income for qualifying purposes.
“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,” said Todd Helmerson, director of wholesale loan production for Kinecta Federal Credit Union.
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. Annuities, trust funds and hedge funds also may be used as long as there is evidence that the funds are available to the borrower. Available for loan amounts from $417,001 to $3,000,000, Kinecta’s Asset Utilization Loan Program takes its place alongside several other specialized offerings from Kinecta, including Fannie Mae HomePath mortgages and mortgage insurance-insured jumbo loans with high loan-to-value (LTV) ratios and above Federal Housing Finance Agency (FHFA) loan limits.