THE PLEDGED ASSET Loan Program allows your clients to finance 100 percent of a home purchase without liquidating investment assets. This program caters to clients who wish to defer capital gains and losses while maintaining their investment strategy.
BENEFITS AND FEATURES:
- 100% financing available with this program
- No interest rate or price add ons
- Any sponsor may pledge assets on behalf of a borrower in lieu of a down payment
- Available on all products including second homes, investment properties and in conjunction with a cash-out refinance
- Option to defer capital gains tax by keeping the investment strategy in place and continually benefiting from interest, dividends and investment appreciation
- No Mortgage Insurance (MI) required as long as effective LTV is 80% or less
- Pledged assets can be kept with the brokerage firm of choice, as long as certain pledge account requirements are met
- Eligible assets include stocks, bonds, mutual funds, CDs and others. Retirement accounts are not eligible
- Trading is allowed in the pledged account
Eligible investment assets may be pledged in lieu of a down payment. The initial pledge must equal up to 143% of the required down payment at loan closing and must be maintained at a value of 120% during the pledge period. If the borrower is unable to maintain the value at 120%, the lender may require the sale of all or a portion of the pledged assets. All borrowers should consult a financial planner before electing this type of loan. The Pledged Asset Loan Program is not available in all states.
Please let me know if you have any questions!
Rose Thomas
831-625-7979
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