Our Asset Depletion Loans are offered in: California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Oregon, Rhode Island, South Carolina, and Washington D.C.

How the Program Works

• Asset depletion is used to establish monthly income for borrowers based on their liquid assets
• Automated calculator uses a 4% rate of return on the assets PLUS a depletion amount based on the borrower’s age and Social Security Administration’s life expectancy
• Asset depletion calculator can be found on the Northstar Funding website at advancialwholesale.com under Broker Resources or your AE can send you a copy
• Assets are used at 100% face value including retirement accounts (retirement only used if borrower is age 59 1/2 or older)

Calculator Example

Calculator example for 72 year old borrower purchasing a $275,000.00 home. In this example you can use $7,723.00 as monthly income on the 1003 under “other
types of income”.

The Northstar Funding Difference

• Loan sizes as large as $3 million and as small as $100K allowed
• Up to 75% LTV for owner occupied and 2nd homes including Non-Warrantable Condos, Co-ops, Condotels and Cash Out
• Investment properties allowed up to 60% LTV including cash out
• Northstar Funding allows up to 10 financed units and 15 total REO including cash out loans
• Assets are used at 100% face value with no reduction for stocks, bonds, mutual funds or other publically traded accounts
• Cash out can be used in the calculator as income on a case by case basis
• No rate adjustments apply to the program – please note max LTV is 75%
• Northstar Funding does not:
  • Require active depository relationship ($5 membership account required)
  • Require pledged funds
  • Solicit the borrow to transfer assets This is a key benefit to generate leads from Financial Planners, Wealth Managers and Investment Planners
• Only one appraisal required regardless of loan amount or cash out
• Asset depletion can be used in conjunction with all other income sources such as W 2, self- employed, pension, Social Security or rental income
• All specialty programs can be used in conjunction with asset depletion and all collateral types are allowed i.e.:
  • Multi Family
  • Hobby farms/acreage
  • Work Visa/Expat
  • No Credit/Limited Credit
  • 2-4 family
  • Non-warrantable Condos
  • Co-ops
  • Condotels
  • Cash Out

Points to Remember

• Assets must be held in U.S. account
• REITs, Hedge Funds, Venture Capital, Notes Payable or other private investments typically cannot be used
• Funds inside an annuity and cash value or life insurance cannot be used
• Trust assets can be used if the borrower has 100% unrestricted access to the funds and all trust documents and asset statements are provided
• Accounts shared by borrower and co-borrower can be used using the elder borrower’s age
• Reserve requirement is not deducted from the assets when populating the calculator

Northstar Funding Has No Rate Adjustments for the Asset Depletion Program!

Pricing Example: No rate adjustment for  the program. Asset depletion max LTV is 75% for owner occupied or 2nd home.

Asset Depletion Arm Product Features

• Max DTI 43%
• 75% LTV up to $1 million loan amount with reduced LTVs up to $3 million
• 30 year amortization
• No prepayment penalty
• 2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor = Note Rate
• Qualify at the start rate on 7/1, 2% over on the 5/1 and 6% over on the 3/1
• Escrows generally required