IIUC, someone with $10M liquid net worth and no income would be denied a $800k mortgage.

What is a bank’s reasoning for this?

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I think at that NW you’d get private banking service and they’d gladly lend to you against your portfolio

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How does someone with $10M liquid net worth not have any income? Any interest, dividend, or cap gains?

likesmarthelpful

I gave you the reason why a bank prefers conforming loan vs a non-conforming.

Because in that case you should buy the property outright. Why would you pay interest if you have the cash?

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