FAQ for Financial Advisors — Mortgage Questions Answered
Advisor Aligned Mortgage specializes in mortgage solutions for independent RIAs, fee-only financial planners, and their clients with complex income and asset situations.
What is asset depletion and how does it help retirees qualify for a mortgage?
Asset depletion (also called asset dissipation) converts a borrower’s liquid assets — investment accounts, brokerage accounts, retirement funds — into a calculated monthly income for underwriting. The lender divides eligible assets by a set number of months (typically 360 for a 30-year loan) to arrive at qualifying monthly income. No W-2s or pay stubs required.
This is ideal for retirees and pre-retirees with significant portfolios but limited traditional income. At Advisor Aligned Mortgage, asset depletion loans are available from Day 1 of retirement — no 2-year distribution history required.
How do self-employed clients qualify for a mortgage without tax returns?
Bank statement loans use 12 or 24 months of personal or business bank statements to calculate average monthly deposits as qualifying income — no tax returns required. This reflects actual cash flow rather than IRS-reported income after write-offs. Ideal for business owners, consultants, freelancers, and entrepreneurs in Orange County, Los Angeles, and San Diego.
What is a DSCR loan and how does it work for real estate investors?
A DSCR (Debt Service Coverage Ratio) loan qualifies based on the rental income of the investment property — not the borrower’s personal income. DSCR = monthly gross rent ÷ monthly mortgage payment (PITIA). A DSCR of 1.0 or above is typically required. No personal income verification, no employment history, no tax returns needed. Ideal for investors with multiple properties or complex personal income.
What are non-QM loans and who benefits from them?
Non-QM (Non-Qualified Mortgage) loans use alternative income documentation and flexible underwriting for borrowers who don’t fit conventional guidelines. Common non-QM borrowers: self-employed individuals, retirees living off investments, real estate investors, high-net-worth clients with complex income (RSUs, K-1s, carried interest), and foreign nationals. Non-QM is not subprime — many non-QM borrowers have excellent credit and significant assets.
How does Advisor Aligned Mortgage work with independent financial advisors?
Advisor Aligned Mortgage was built specifically for independent RIAs and fee-only financial planners. Jeff Singleton coordinates the mortgage with the advisor’s financial plan in mind — preserving liquidity, protecting investment portfolios, and structuring loans that complement long-term strategy. Jeff has no wealth management division and no incentive to compete for a client’s AUM. The referral relationship stays clean.
Can clients with RSU, stock option, or K-1 income qualify for a mortgage?
Yes. Borrowers with RSUs, non-qualified stock options, K-1 partnership distributions, carried interest, or deferred compensation can qualify through non-QM or jumbo underwriting designed for complex income structures. Conventional lenders often struggle with vesting schedules and multi-year averaging — Advisor Aligned Mortgage works with underwriters who specialize in these scenarios.
What is a jumbo loan and when does a client need one?
A jumbo loan exceeds conforming loan limits — in most of Southern California, any loan above $1,149,825 (2024 high-cost area limit). Required for luxury property purchases and refinances in Orange County, Los Angeles, and San Diego. Advisor Aligned Mortgage specializes in jumbo loans combined with non-QM income documentation for high-net-worth clients.
What is the advantage of using a mortgage broker versus a bank for high-net-worth clients?
A mortgage broker accesses dozens of wholesale lenders and non-QM programs that no single bank can offer. For complex borrowers this breadth is critical. For financial advisors, a broker relationship also avoids the conflict of interest that exists when a wirehouse or bank handles both the client’s investments and their mortgage.
How long does the mortgage process take for complex or non-QM loans?
Pre-approval for complex income scenarios typically takes 48 hours once documentation is received. Full loan closing for non-QM loans generally takes 21–30 days. For advisors coordinating with a financial plan — timing a portfolio liquidation or 1031 exchange — a 30–45 day runway is recommended.
What documentation do clients need for a non-QM mortgage?
- Bank statement loans: 12–24 months of bank statements
- Asset depletion: Recent statements for all qualifying accounts (brokerage, IRA, 401k, savings)
- DSCR loans: Signed lease or market rent appraisal for the subject property
- All programs: Government ID, credit pull, property documentation
Most non-QM programs do not require tax returns, W-2s, or employer verification.
Have a client situation to discuss? Contact Jeff Singleton directly.
Jeff Singleton | Advisor Aligned Mortgage | NMLS# 215354 | CA BRE# 01510260 | (949) 344-1717 | jeff@saxtonmortgage.com