Living on savings and investments
New Jersey retirees, or people recently retired, buying a home nearer family or the Shore, or refinancing the one they have. Your accounts can stand in for a paycheck, on their own or alongside a pension.
New Jersey
Asset-based mortgages in New Jersey
An asset-based mortgage is an ordinary home loan where your verified savings, investments and retirement accounts can count in place of, or as well as, a paycheck. We offer them across New Jersey from our office in West Long Branch and our licensed branch in Manalapan.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Start with your accounts
See how your assets could count, then talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Local lender
Why work with a New Jersey lender
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our New Jersey office is at 121 NJ-36, Suite 230, West Long Branch, and our licensed branch is at 1 Yorktowne Drive, Manalapan (branch NMLS ID #2103558).
An asset-based loan turns on the detail of your accounts: which ones you hold, how each kind is counted, and what you need to keep for closing. It helps to go through your statements with a licensed loan officer who can meet you in Monmouth County or talk by phone wherever you are in New Jersey.
Who it suits
Who it suits in New Jersey
People whose savings tell a stronger story than their paycheck.
After a sale, or with uneven income
Owners who sold a business and now hold substantial verified savings, or whose business income varies. Assets can count on their own or on top of income you document.
Small income, large balances
Buyers whose income looks small next to what they have saved, including people between jobs. Your accounts stay in your name; nothing is pledged and nothing has to be sold.
How it works
How an asset-based mortgage works
- The home is the collateral. Your bank, brokerage and retirement accounts stay yours, and you do not have to withdraw the money.
- Three ways to count assets: as a monthly income through asset depletion, through a test of the assets left after closing with no income figure, or added to wages or a pension.
- Complete statements, every page, for each account you want counted, with a short note on any large or unusual deposit.
- Underwritten as usual: credit, housing payments, the appraisal and the property are checked, and balances are confirmed again shortly before closing.
- Mostly for the home you live in. Some programs also allow a second home or a rental property.
A worked example, in words. Say you have recently retired, you hold a savings account, a brokerage account and a retirement account, and you are buying a smaller home in Monmouth County, nearer the Shore.
- The accounts. Each eligible account is added up, and each kind is counted at a share of its value; some programs count only part of an investment or retirement account.
- What you need first. The down payment, closing costs and reserves are set aside from those balances.
- The monthly figure. With asset depletion, what is left is spread over a set number of months, and that monthly figure is treated as income, on its own or added to a pension or other income you document.
- The ratio. A normal debt-to-income ratio follows: the new payment and your other monthly debts are compared with that income.
- Or no income figure. With an asset qualifier, the test is whether the assets left after closing are large enough measured against the loan and your other debts, and leave enough each month to live on.
Your credit, your housing payments, the appraisal and the home are checked as for any mortgage. The assets-as-income calculator shows the methods side by side using your own balances; it is an estimate, not a decision.
Want the detail? Our asset-based mortgage guide explains each method and the documents to gather, and the assets-as-income calculator shows the methods side by side using your own balances.
Be ready
What you need for an asset-based mortgage in New Jersey
Most borrowers can start with these.
- Complete statements for each bank, brokerage and retirement account you want counted
- The withdrawal terms of any retirement plan you use
- A short explanation of any large or unusual deposit
- An access letter from anyone who shares an account but is not on the loan
- Proof of any other income you want added, such as a pension
- Your signed purchase contract, once you have one
Selling a New Jersey home or a business first? Money from a sale that lands in your accounts is a large deposit, so keep the closing statement to explain it. Balances are confirmed again shortly before closing, so plan to leave the money in place until then; you do not have to withdraw it.
Questions
Questions from New Jersey borrowers
Do you lend on asset-based mortgages in New Jersey?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License. You can check it on NMLS Consumer Access (opens in a new tab).
Where are you located?
Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, and our licensed branch is at 1 Yorktowne Drive, Manalapan, NJ 07726. Call 732-686-9999 to talk with a licensed loan officer.
Do I have to sell or pledge my investments?
No. The lender reads your statements; it does not hold your accounts. The home secures the loan, as with any mortgage.
Can my retirement accounts count?
Usually, yes, along with bank and brokerage accounts. Each program treats each kind of account in its own way, and some count only part of its value. You send the plan’s withdrawal terms with your statements.
Does the calculator decide my loan?
No. The calculator is an estimate of how the methods could treat the balances you enter. Underwriting sets the method and the final figures after a full review.
What is an asset depletion mortgage?
One way an asset-based loan counts your money. The lender takes your eligible savings and investments, sets aside what you need for the down payment, closing costs and reserves, and spreads the rest over a set number of months to arrive at a monthly income. That figure can stand alone or be added to wages, a pension or other income you document.
What is the difference between asset depletion and an asset qualifier?
Asset depletion turns your accounts into a monthly income, and a normal debt-to-income ratio follows. An asset qualifier has no income calculation and no debt-to-income ratio: the test is whether the assets left after closing are large enough measured against the loan and your other debts. A loan officer picks the one that fits your accounts and the home.
Do I still need a job?
Not always. With an asset qualifier you do not need to show employment. With asset depletion, your assets can be your only income or be added to other income, such as a pension or Social Security.
Can I buy a second home at the Shore or a rental with it?
Most programs are for the home you live in. Some also allow a second home or a rental property. Tell your loan officer how you will use the home at the start.
Can I refinance my New Jersey home with an asset-based loan?
Yes. An asset-based loan can buy a home or refinance the one you have, and your accounts are counted the same way.
What credit score and loan size do these programs need?
Each program sets its own. Some programs accept credit scores from 600, with a larger down payment, and some lend from $100,000; most ask for more on both. A loan officer matches your file to a program.
Is this the same as a bank statement loan?
No. A bank statement loan counts the deposits into a self-employed borrower’s accounts as income. An asset-based mortgage counts the balances you already hold, whether or not you work. Some borrowers could use either; see bank statements, 1099 forms or assets.
Talk about an asset-based loan in New Jersey
Get a quote online, or call and go through your accounts with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, assets, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.