What Is an Asset-Based Loan?

An asset-based loan uses verifiable assets to secure the mortgage loan. Unlike many banks and other lenders, Griffin Funding does not require the borrower to pledge or put up assets as collateral. We instead simply use a formula to convert assets to income to demonstrate the borrower’s ability to repay, require a good credit score, and require a 20% downpayment as collateral on the property. Iff they’re unable to make payments on the loan, they forfeit the property to the lender, not their assets. This helps the lender feel more secure while allowing the borrower to access financing regardless of their income or other traditional qualifying factors.

You can use your assets to secure an asset-based home loan.A borrower doesn’t have to prove their ability to repay the loan, as the repayment is determined by the assets.

A down payment of 20-30% is typically required to purchase most types of property when using an asset-based loan. Asset-based loans in California also tend to have a higher rate of interest than traditional loans.

Asset- or equity-based lending doesn’t require the use of underwriting to determine your ability to repay the loan and offers flexible repayment terms. That means you don’t undergo an investigation into your finances to determine your eligibility to borrow. An asset-utilization loan has fewer qualification requirements than traditional loans, which allows more people to access the financing they need.

How Does Asset-Based Lending Work in California?

Asset-based lending is a type of lending that offers access to financing when traditional lending options may not be available. This type of lending is based on the equity or value of your assets. Lenders typically prefer easily liquidated assets, but many types of assets that hold value can be used to secure the loan.

Loans that are secured by physical or intangible assets are considered higher risk than other forms of loans. This means that the lender generally won’t lend you the entire value of the asset, but they may lend you a large portion of the asset’s value.

Getting an asset-based loan involves talking to a California mortgage lender such as Griffin Funding. We can help you learn more about asset-based loans in California, including the types of assets that are accepted and how much cash you can borrow against them. We will also explain how you use your assets to secure the loan, the information you need to provide regarding the assets, the credit score required, and the amount of down payment required on purchase loans.

Benefits of Asset-Based Lending

One of the main benefits of asset-based lending is that it’s more flexible than traditional forms of lending. You can qualify for a mortgage based on your current assets instead of putting down all cash, and you can get approved even if your income wouldn’t qualify you for a traditional mortgage.

Additionally, you can use a variety of assets to secure the loan and get access to up to $3 million in financing. This type of lending also allows you to get a mortgage for a home that’s not your primary residence, opening up the potential to buy investment properties.

The credit score requirement for an asset-based loan is also lower than a traditional mortgage. Most equity-based lending requires a minimum score of 620 to qualify. A minimum down payment is also required.

How to Get an Asset-Based Loan in California

Griffin Funding can help you with getting a California asset-based loan. Start by getting in touch with a Griffin Funding mortgage strategist and fill out an online loan application. State which assets you intend to use for qualification, deliver the required documentation to us for review, and sign the final loan documents before a public notary. After your paperwork is processed and approved, your funds will be deposited into the designated account for your use.

Areas We Serve

At Griffin Funding, we provide loan services for the entire state of California and can help you get an asset-based loan whether you live in Napa Valley or San Diego. Some of the areas of California we serve include:

  • Anaheim
  • Berkeley
  • Cupertino
  • La Habra Heights
  • La Quinta
  • Los Altos Hills
  • Oakland
  • Palm Springs
  • Santa Ana
  • San Diego
  • San Francisco
  • Truckee
  • Bakersfield
  • Coronado
  • Fresno
  • La Jolla
  • Long Beach
  • Los Angeles
  • Palm Desert
  • Sacramento
  • Santa Cruz
  • San Jose
  • Riverside
  • Westlake Village

Other Non-QM Loans From Griffin Funding

An asset-based loan is classified as a non-qualified mortgage as defined by the Consumer Financial Protection Bureau (CFPB). Essentially, this means that an asset-based loan in California uses alternative means of income verification in order to provide financing to borrowers.

In addition to asset-based lending in California, Griffin Funding offers a variety of other Non-QM loans, such as:

  • DSCR loans: DSCR loans in California can help real estate investors qualify for financing based on the cash flow produced by their investment properties.
  • Bank statement loans: Bank statement loans in California allow borrowers to qualify for financing based on bank statements rather than tax returns.
  • Jumbo loans: Jumbo loans allow borrowers to access large sums of money with fewer restrictions than traditional jumbo loans.

As you can see, we offer multiple types of non-traditional loans in California to help buyers get the home of their dreams or make major purchases. We can also help borrowers navigate VA loans in California and guide them through the requirements for qualifying.

Begin the application online or request a free quote today!

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Apply for an Asset-Based Loan in California

California asset-based loans help you take advantage of the equity in your property without the need to undergo traditional loan underwriting. It allows you to gain access to funds quickly and in large sums, without the need to put up your own cash. The loan process is also more straightforward, doesn’t require proof of income, and has a lower credit score requirement. You can get the money you need with far less stress.

Contact Griffin Funding today to talk to one of our loan advisers about your funding needs. We offer traditional and non-traditional forms of lending to help you gain access to funding in a way that fits your needs. Our loan applications are straightforward and designed to make it easy for you to understand, and we get to work the moment you submit your application.