What Is an Asset-Based Loan?
Asset-based lending is used to finance a mortgage on a home. For individuals, the type of asset can be checking, savings, bonds, ETFs, and certain retirement accounts.
Asset-based loans can be secured by verifying the amount of your qualified assets. The lender then uses a formula to convert your assets into income. The more assets you have, the more income the lender will give you. The more income, the higher priced home you can purchase. For individuals, money borrowed can be put towards a mortgage rather than buying a home for all cash.
If you are looking to get a home loan, but you are not able to secure one through traditional means, you might consider using an asset-based loan in Florida to get the financing you need.
How Do Asset-Based Loans in Florida Work?
Florida asset-based loans, like similar financing in other states, allow you to use assets as income. This can allow you to tap into the equity of your home or property and secure financing based on the asset’s value.
Asset utilization loans in Florida do not require you to, pledge, deed, or title your assets over to the lender. Instead, you just need to verify the amount of your assets to show the lender your ability to repay the loan. Asset-based loans use common sense underwriting – if you can verify that you have the means to pay your mortgage payments on time, then you’ll qualify for a Florida mortgage.
In asset-based lending, the loan amount is also determined by the value of the assets. Unlike other types of loans based on income, asset-based loans do not require you to have an income. They are, therefore, more accessible to business owners who do not have a regular paycheck and retired people who have property and assets but lack a consistent salary.
When applying for an asset-based loan in Florida, the lender determines the percentage interest and duration based on the borrower’s ability to repay and the value of the property.
Benefits of Asset-Based Lending in Florida
Some of the primary benefits of asset-based lending in Florida include:
- You can qualify for loans without having to worry about proof of income.
- Credit score requirements are flexible.
- It is possible to access up to $3 million in financing.
- You can use different types of assets to qualify, including bank accounts, brokerage accounts, cryptocurrency, and retirement accounts.
- You can get approved regardless of your current income level.
- With asset-based lending, Florida residents can get funding for a second home or vacation property.
- Asset-based loans can provide you with additional cash flow without requiring you to sell your assets. You can get value from them while still retaining possession.
These are the advantages of asset-based lending that Florida residents can take advantage of if they need an alternative to traditional mortgages or unsecured loans.
How to Get an Asset-Based Loan in Florida
Griffin Funding is proud to offer asset-based loans in Florida. If you are looking for an alternative to a traditional mortgage or have assets that you wish to get value out of by using them as collateral for loans, you can apply for an asset-based loan to quickly secure financing.
These are the basic steps you need to take to get an asset-based loan through Griffin Funding:
- You can start the process by reaching out to a Griffin Funding mortgage strategist.
- Once you decide that an asset-based loan is the best option, you need to fill out an online application.
- Part of the application process involves deciding which assets you will use to qualify.
- You will need to provide documentation on supporting financial documents.
- Griffin Funding will review the application and documentation.
- Once your loan is approved, you need to sign the final loan document in the presence of a notary.
Areas We Serve
Here at Griffin Funding, we can provide asset-based loans virtually anywhere in Florida. Some of the areas we serve in Florida include:
- Atlantic Beach
- Cape Coral
- Coral Springs
- Longboat Key
- St. Petersburg
- Fort Lauderdale
- Lake Mary
- Neptune Beach
- Palm Beach
- Port St. Lucie
Other Non-QM Loans From Griffin Funding
A Non-Qualified Mortgage loan (Non-QM loan) allows borrowers to qualify for a loan using alternative methods rather than navigating a traditional home loan process. At Griffin Funding, we understand that not everyone falls into the same financial category. Our Non-QM loans allow more people to get funding with terms that work for their particular circumstances.
Some of the Non-QM loans currently available from Griffin Funding include:
- Bank statement loans: Bank statement loans in Florida allow self-employed borrowers to qualify for loans using bank statements as proof of income.
- DSCR loans: DSCR loans in Florida allow borrowers to qualify for financing based on the cash flow generated by a rental or investment property.
- Jumbo loans: Jumbo loans cover properties and purchases that may prove too expensive for traditional mortgages.
These loans can help almost anyone get funding. These options may appeal to real estate investors, retirees, small business owners, self-employed people, those with a history of bankruptcy or foreclosure, and borrowers who don’t qualify for traditional loans.
At Griffin Funding, we also offer VA loans for qualifying active duty members and veterans. VA loans in Florida are available to military veterans with no down payment and low interest rates.
Apply for an Asset-Based Loan in Florida
If you are looking for mortgage lenders in Florida, contact a consultant at Griffin Funding. We understand that many people may face difficulties when applying for loans. A Griffin Funding loan specialist will help you find the type of financing that works for you based on your assets or income.
We can help you understand the risks of your loan choice and what you need to do to plan your loan repayment. Contact us or request a quote today.