A financial advisor sought a second mortgage to consolidate substantial credit card debt. To reduce his Debt-to-Income (DTI) ratio and secure a lower interest rate, we enhanced his documented income using asset depletion. By leveraging 70% of his $300K in three retirement accounts (since he was below retirement age) and spreading it over 84 months, we effectively increased his monthly income by $2,500.
Loan Details
– Location: Atlanta, Georgia
– Loan Program: Standalone 2nd Program
– Loan Amount: $600,000
– Transaction Type: Cash-Out/Debt Consolidation
– Property Type: Single-Family Residence (SFR)
– Combined Loan-to-Value (CLTV): 74.5%
– Credit Score: 734
– Loan Term: 30-year Fixed
By leveraging asset depletion, this financial advisor was able to secure a favorable second mortgage, effectively consolidating debt and lowering monthly payments. This strategic approach not only improved his debt-to-income ratio but also provided a clear path to financial stability. Whether you’re looking to consolidate debt or tap into your home’s equity, understanding and utilizing asset depletion can be a game-changer in achieving your financial goals.
Contact our office and we’ll connect you with a Home Equity Line/Loan specialist.
