Announcement 21-0035: Non-Agency Asset Conversion Requirements

September 2, 2021


Carrington Mortgage Services, LLC (CMS) is pleased to announce the new and improved Asset Conversion income option to Carrington Prime Advantage and Carrington Flexible Advantage Plus Programs for purchase, rate/term refinance and cash-out transactions. Asset Conversion will utilize the same qualification requirements as the full documentation matrix and best of all, NO additional LLPA’s!  With increased percentages of qualified assets and a reduced amortization period of 60 months, the Asset Conversion option adds another tool to your Non QM tool box.

How to Use Asset Conversion

To be eligible, borrowers must have the lesser of (a) 1.5 times the loan balance or (b) $1MM in qualified assets, both of which must be net of down payment, loan costs and required reserves to qualify.

Qualified Assets can be comprised of stocks, bonds, mutual funds, vested amount of retirement accounts and bank accounts. If a portion of the qualified assets are being used for down payment, closing costs, or reserves, those amounts must be excluded from the balance before analyzing a portfolio for income determination. Please note: Restricted stock and margined accounts are not considered qualified assets and are not eligible.

The following assets are considered Qualified Assets and can be utilized to calculate income:

  • 100% of checking, savings, and money market accounts
  • 100% of the remaining value of stocks & bonds
  • 70% of retirement assets
  • 100% Cash Value of Life Insurance
  • 3-months seasoning of assets required


The following assets are not permitted:

  • Funds in Foreign Banks
  • Funds in Business Accounts

Asset Conversion may be used in conjunction with Full Income Documentation, but cannot be used in conjunction with Bank Statement Income Documentation or 1-year Alternative Document income types.

The income calculation is as follows:

Monthly Income = Net Qualified Assets / 60 Months


See the Asset Conversion Calculator and Flexible Advantage Plus Program Matrix and Carrington Prime Advantage Program Matrix for additional information regarding credit score and LTV restrictions.


Please contact with any questions.


Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
VA Automatic Lender Approval #:

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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