Equity/Networth Lending

Networth or equity lending, is typically used in scenarios where applicants have a significant amount assets accumulated in real estate or savings and investments, but might not have sufficient income, or verifiable income to approve them for the mortgage amount requested.

Not every lender offers networth lending, as these are very much specialized programs. 

To be considered for these programs, you would be required to have a sizeable down payment, and a minimum 20% down. Or, in a scenario of borrowing equity out of a property already owned, an applicant would need to retain a minimum of 20% equity in the home. 

Having the ability to work with a lender that offers these programs is largely advantageous for our borrowers as it can often mean a large swing and their buying power or qualified mortgage amounts. When an applicant does have a large amount of networth, financial institutions will generally feel more comfortable in lending money that doesn’t meet traditional income guidelines as the banks understand that the borrower may be able to sell off assets, if required to cover their financial obligation of the mortgage