I know a lot of folks who have seen very high increases in stock portfolios in the AI boom. However, its mostly all unrealized gain. For those who are full-time and don't have W2, does this mean they can't obtain favorable mortgage rates compared to those with regular W2 incomes?
I realize that capital gains schedule D is often considered and that banks sometimes will take the avg of the last few years of dividends/capital gains, but what about those who don't sell and don't realize any gains? There has to be some option in cases where they have solid portfolio size?
Are there any key insights on how full-time investors obtain mortgages in situations where most of their income is unrealized gains?
byu/Independent_You7902 inpersonalfinance
Posted by Independent_You7902
1 Comment
They can use an SBLOC instead of a typical mortgage.
You can put enough down that lendor requirements decrease.
Unrealized gains are not income…
So basically if you don’t have income you are looking at some form of collateralized debt or selling assets to pay for a new asset.