What Is an Asset-Based Loan?
Maryland asset-based loans are exactly what their name implies. With Maryland asset-based loans, a person’s assets are used to secure the loan. By using the assets as income, there is no need to tap into the incoming cash flow. While that money may be used to pay the loan back, it is not automatically targeted for that purpose. A Maryland mortgage lender may recommend an asset-based loan if a property is already paid for and has all of the characteristics of good collateral for the loan.
How Do Asset-Based Loans in Maryland Work?
Asset-based loans require the borrower verify the amount of assets they have to determine the loan amount that they will qualify for.. f the borrower fails to pay back the loan, the lender cannot seize the assets used to qualify but they can foreclose on the property. Thus, Maryland asset-based loans allow borrowers to tap into the equity of valuable assets, while protecting lenders in case of a defaulted loan.
Benefits of Asset-Based Lending in Maryland
Asset-based lending in Maryland offers a list of benefits that can be hard to pass up. One of the biggest benefits is that you can qualify for a mortgage loan by using only the assets you own. If your assets are verified, you may be able to borrow as much as $3 million.
With this type of loan, you can get approved without having to worry about how much income you bring in. With asset-based lending, there is also flexibility in the type of assets you can use to qualify for the loan.
An asset-based loan in Maryland also allows you to secure financing for an investment property. With this type of loan, you can secure a mortgage for a property that can be used as a rental instead of your primary place of residence.
How to Get an Asset-Based Loan in Maryland
If you want to qualify for an asset-based loan in Maryland, you will need to follow these steps:
- Contact a mortgage strategist at Griffin Funding.
- Complete an application online.
- Choose which assets you intend to use to qualify for the loan.
- Collect any requested documentation.
- A lender will review your application and any accompanying documentation.
- Upon approval of the loan, you will be able to sign the final contract in front of a notary.
Areas We Serve
Griffin Funding provides asset-based lending across Maryland. Below are just some of the areas we serve:
- Ellicott City
- Glen Burnie
- Mount Airy
- Silver Spring
- Chesapeake Beach
- La Plata
At Griffin Funding, we’re happy to work with you and help you secure an asset-based loan no matter where you are in Maryland.
Other Non-QM Loans From Griffin Funding
Non-QM loans are the lending option of choice for borrowers who don’t fit the standard when it comes to income and financial eligibility requirements. Non-QM stands for a Non-Qualified Mortgage. Simply put, this type of mortgage is designed for someone that requires a non-traditional form of verification when it comes to their income and assets. Bank statement loans, jumbo loans, interest-only loans, and DSCR loans fall into this category.
- DSCR loans: DSCR loans in Maryland use the cash flow from a borrower’s investment or rental properties to qualify them for the loan.
- Bank statement loans: Bank statement loans in Maryland allow you to verify your income through your bank statements. People who are self-employed don’t receive a W-2 to verify income and therefore may fail to qualify for a traditional mortgage. With a bank statement loan, borrowers don’t have to provide a W-2 and verify their income through traditional means.
- Interest-only loans: Interest-only loans allow the borrower to pay only the interest for a specific period of time.
- Jumbo loans: Jumbo loans allow borrowers to access large sums of money that may not be attainable when applying for a traditional mortgage.
Griffin Funding also offers VA home loans to qualifying service members and veterans. With VA home loans in Maryland, you can secure financing with no down payment and beneficial loan terms.
Apply for an Asset-Based Loan in Maryland
Applying for an asset-based loan in Maryland may be a good option if you require alternative methods of income verification. With more and more people being self-employed, asset-based loans are a great option that allows borrowers to get the funding they need without having to jump through the stressful hoops that come with conventional financing.
When you need a financial boost and have the assets to support a loan, contact Griffin Funding today to learn more about asset-based lending in Maryland. Speak with one of our specialists to learn more about our financing products or fill out an application online if you’re ready to get started.