What is an Asset-Based Loan?
An asset-based loan in Colorado utilizes assets, such as checking, savings, money market, stocks, bonds, mutual funds, ETFs, and vested retirement accounts to show the ability to repay. As the borrower, you can use the money for financing a mortgage. These types of asset utilization loans do not require you to pledge your assets. Assets are used to show that you have the wherewithal to pay your mortgage on time regardless of economic circumstances.
The asset-based lending Colorado residents can access is available for both individuals buying a primary residence or second home and real estate investors buying rental properties. Here is a closer look at how Colorado asset-based loans work.
How Does Asset-Based Lending Work in Colorado?
Colorado asset-based loans allow borrowers to secure the loan using assets they already have. This approach is different from traditional mortgages, which secure the loan using a full underwrite of tax returns, pay stubs, W2s, credit report, down-payment, and reserves.
The amount of financing you can access is determined by the value of your assets. In Colorado, the assets are verified, and the value is used to determine the amount you qualify to borrow. This is unlike other loans, which are determined chiefly by how much income you earn and your credit score. You may have to supply financial information during the application process, but the value of your assets, credit score, and down payment will ultimately decide the terms of the loan.
Borrowers do not need to transfer the title, deed, or physical asset to the lender.
Benefits of Asset-Based Lending in Colorado
The asset-based lending Colorado residents can apply for provides specific benefits. This type of financing can be ideal for those who have difficulty meeting the requirements of traditional mortgages.
Here is a look at the advantages of asset-based financing:
- Qualify for a mortgage using only assets, credit score, and down payment: You can use the wealth you have already accumulated to get a loan without having to prove income.
- Access up to $3 million in financing: Investors with properties can use more than one asset to qualify for a large loan.
- Flexible in the type of assets you put down for your loan: Lenders can often accept several different types of assets as collateral.
- Can get approved regardless of your income level: The loan is not determined by your income but by the value of your asset.
- Secure a mortgage for a home that isn’t your primary residence: You can take out an asset-based loan in Colorado to finance an investment property.
How to Get an Asset-Based Loan in Colorado
These are the basic steps one needs to take to get an asset-based loan through Griffin Funding:
- Contact a Griffin Funding representative to decide which type of loan is best for your needs and financial plans.
- If asset-based financing is the best option, you can then fill out an online loan application.
- As you apply, you will need to select the assets you will use to qualify.
- You will also need to provide the necessary documentation on ownership and other financial information.
- The lender will review the application and supporting documents and make certain they meet all requirements.
- If the lender agrees to the loan, you will sign the agreement in front of a notary public. Once this is done, you receive your funds.
Areas We Serve
Griffin Funding is active throughout Colorado. We serve the following areas.
- Colorado Springs
- Lone Tree
- Castle Pines
- Cherry Hills Village
- Fort Collins
These are just a few of the cities where we offer Colorado asset-based loans. No matter where you are in the state, we can help you secure financing.
Other Non-QM Loans From Griffin Funding
A Non-QM loan (short for Non-Qualified Mortgage loan) is a unique financing option with an application process based on alternative methods instead of traditional verifications.
For example, in a conventional mortgage application, you generally must supply two years of income data. However, retirees, business owners, and freelancers may not be able to meet this requirement.
Non-QM loans offered at Griffin Funding include:
- Bank statement loans: A bank statement loan in Colorado is based on bank statements from the past 12-24 months.
- DSCR loans: DSCR loans in Colorado are based on expected income from investment properties.
- Jumbo loans: Jumbo loans allow borrowers to access large sums with as little as 10% down.
- Interest-only loans: With an interest-only loan, you only pay the interest of the loan for the first few years before you start paying the principal amount.
Griffin Funding is also proud to offer VA home loans for active-duty service members and veterans. VA home loans in Colorado come with no down payment and favorable interest rates for current or former military members who qualify.
Apply for an Asset-Based Loan in Colorado
If you are interested in an asset-based loan in Colorado, a consultant from Griffin Funding can help you find a solution that is tailored to your needs.
If you have had difficulty applying for traditional loans in the past, you may be able to find an option that better suits your needs and current financial situation. As a Colorado mortgage lender, Griffin Funding welcomes borrowers who do not fit the usual mold.
Griffin Funding offers competitive mortgage rates in Colorado and provides borrowers with a clear understanding of the decision you are about to make while offering all the support you need during the application process.