What Is an Asset-Based Loan?
Asset-based lending involves extending loans using a borrower’s assets as their income rather than tax returns or W2s. Such a loan can be secured by leveraging assets like checking, savings, stocks, bonds, ETFs, and vested retirement accounts.
Asset-based loans or asset utilization loans reduce risk to the asset-based lenders in Connecticut by demonstrating that the borrower has the ability to repay the home loan. Asset-based loans are only different in that they tend to be more flexible in terms of what can be used as assets to qualify.
The idea behind asset-based loans is to give the borrower a bargaining chip other than using all of his or her cash. Suppose you lacked traditional proof of income but had enough assets in the bank to show that you could use the money to pay the mortgage if you had to. In this case, your assets could provide you with access to funds you may not otherwise qualify for.
How Do Asset-Based Loans in Connecticut Work?
Asset-based loans in Connecticut work by securing the loan with an asset, allowing the borrower to avoid providing proof of income and some other financial information. The lender does not require you to put up your assets as collateral to qualify for an asset-utilization loan. The lender is simply verifying your assets to ensure that you have enough funds to pay your monthly mortgage.
Benefits of Asset-Based Loans in Connecticut
When an asset-based loan is right for the situation and right for you, there are a number of benefits over other types of loans. Some of the primary benefits include:
- Flexible qualifications: You can avoid the barriers of a traditional mortgage approval process and qualify for a mortgage using only assets, credit, and down-payment.
- Access sizable loans: Qualified borrowers may access up to $3 million in financing.
- Asset flexibility: Borrowers enjoy flexibility in the type of assets that can be put down for a loan.
- Income is not a barrier: You can be approved regardless of your income level.
- Fewer restrictions: You can secure a mortgage for a home that isn’t your primary residence.
- Better liquidity: When used properly, this type of loan can offer financial stability through a predictable cash flow.
- Can be obtained quickly: Those who meet the qualifications can often get an asset-based loan more quickly than other types of loans.
How to Get an Asset-Based Loan in Connecticut
Our team makes applying for your asset-based loan easy. Simply follow these steps to get an asset-based loan through Griffin Funding:
- Reach out to a Griffin Funding mortgage strategist.
- Fill out an online loan application.
- Identify the assets you intend to use as collateral.
- Provide the necessary documentation.
- Your application and documentation will be reviewed by a qualified lending professional.
- Once your loan is approved, you can sign the final loan document with a notary present.
Areas We Serve
Griffin Funding can provide loans virtually anywhere in Connecticut. Below are just some of the cities in Connecticut where we provide asset-based lending services:
- New Haven
- New Britain
- West Hartford
Other Non-QM Loans From Griffin Funding
If an asset-based loan is not right for you, but you still need financing for a home or business, you have options. Other loan types we offer include:
Non-QM loans offered at Griffin Funding include:
- Bank statement loans: Bank statement loans in Connecticut are a type of loan where borrowers qualify for financing through bank statements. No tax information or employer verification is required.
- DSCR loans: DSCR loans in Connecticut enable borrowers to qualify based on the cash flow of an investment property instead of on their personal income.
- Jumbo loans: With this type of mortgage loan in Connecticut, you can access a large amount of financing by putting as little as 10% down.
- Interest-only loans: This is a type of loan in which you only pay the interest on the loan for a fixed period of time. After the interest-only period ends, your loan is recalculated to include payments towards the principal amount.
At Griffin Funding, we’re also proud to offer VA home loans for active duty service members and veterans. VA loans in Connecticut can help qualifying members of the military and veterans obtain a home loan with no down payment and preferential interest rates.
Apply for an Asset-Based Loan in Connecticut
If you are looking to buy a new home or refinance an existing home, now might be the ideal time to apply for Connecticut asset-based loans with Griffin Funding.
Asset-based loans are often easier to qualify for and require less work on your part to apply. And, if you do qualify, you can usually access your funds more quickly than with other types of loans.
If you believe an asset-based loan is right for you, get in touch with Griffin Funding today or apply online. Our team is ready to help.