Stop Selling Stocks For Your Home Down Payment

This guide explains how you can leverage your investment portfolio to secure a jumbo home loan, a strategy particularly useful in high-value real estate markets like those in California. It outlines the process, benefits, and crucial risks involved.

• Use Investments as Collateral: Instead of selling your stocks and bonds to generate a large cash down payment, a pledged asset mortgage allows you to use your portfolio as security. This helps you avoid triggering significant capital gains taxes while keeping your investment strategy intact.
• Understand Your Borrowing Power: Lenders do not value your portfolio at its full market price. They apply 'advance rates' based on the volatility of each asset, such as stocks or bonds, to calculate a total 'collateral value'. This value determines how much you can borrow or how large of a down payment it can cover.
• Key Requirements and Risks: To qualify, you must still meet traditional standards for credit and income. The primary risk is market fluctuation; if your portfolio's value drops significantly, you may face a 'maintenance call', requiring you to add more assets or risk the lender liquidating some of your holdings. The main benefit is the potential to secure up to 100% financing for a luxury home.

Read the full blog article here: https://www.iqratemortgages.com/blog/using-stocks-for-a-california-jumbo-loan-down-payment