Kinecta Allows Use of Assets for Jumbo Qualification

Kinecta Federal Credit Union has launched a jumbo loan program for high net worth borrowers that allows them to use a percentage of their assets in certain other financial products to help them qualify for hybrid adjustable-rate mortgages from $417,001 to $3 million in size.

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Checking, savings, CDs, stocks, bonds, 401K, IRAs and insurance policy surrender values that are fully documented and held in U.S. financial institutions are among eligible assets. Annuities, trust funds and hedge funds also can be used as long as there is evidence that the funds are available to the borrower.

Todd Helmerson, director of wholesale loan production, said in a report Wednesday that both retail members and wholesale business partners could use the option to help clients with strong credit histories and financial backgrounds that have been restricted in getting loans by complex income situations qualify. This could include self-employed or retired borrowers.

Kinecta designed the asset utilization loan program for use with its 5/1, 7/1 and 10/1 jumbo ARMs.

The practice of using assets to qualify high-net-worth jumbo borrowers with good credit was once relatively common within that niche, but since the market backed away from nonconforming loans during the downturn it has been more rare.

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Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_422/kinecta-assets-jumbo-qualification-1026370-1.html?CMP=OTC-RSS

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