What Is an Asset-Based Loan?

Asset-based lending uses the value of your major assets as backing for a loan. The more valuable your assets are, the more money you can borrow against them. This type of lending doesn’t look at your income to assess your ability to repay. Rather, it uses your net worth, whether it’s tied up in investment accounts or retirement, to determine how much you’re qualified to borrow.

This type of loan is perfect for people who have substantial assets but don’t have cash on hand. They can get the money they need now, and repay the loan over time.

How Do Asset-Based Loans in Michigan Work?

Michigan asset-based loans allow you to leverage your assets as income. Your assets are referred to as the borrowing base for the purposes of the loan, and you can borrow based their value. Easily liquidated assets such as investment or savings accounts are preferred, but most high-value assets can be used as a borrowing base.

For example, say you have a retirement account worth$100,000 and you’re allowed to use up to 70% of the asset value for a loan. You can use $70,000 of the asset to qualify for an asset-utilization loan Stock accounts are 80%. For bank accounts such as money markets or savings, you can use to 100% of their value.

The lender determines the borrowing base amount and loan terms, and tenders an offer based on these details.

Benefits of Asset-Based Lending in Michigan

Asset-based lending has fewer requirements for qualification and has a more streamlined application process. You don’t have to show proof of income because you’re securing the loan with your assets. You can also get a mortgage for a home that’s not your primary residence, and you can access up to $3 million in financing that enables you to buy a home or property for any purpose.

Your income doesn’t matter when it comes to getting approved for an asset-backed loan because the loan is being underwritten by your assets. Also, asset-based lenders in Michigan are flexible in the type of assets they accept for the loan. This type of lending is similar to bank statement loans in Michigan, but there are more options when it comes to the assets you can use to obtain the loan.

How to Get an Asset-Based Loan in Michigan

Getting a Michigan asset-based loan begins by identifying which of your assets are available for qualifying purposes. After you’ve determined which assets you want to use, contact Griffin Funding to talk to a mortgage strategist about your needs. You’ll receive a form to fill out online, and you’ll need to declare the assets you want to use for loan qualification.

The loan strategist will let you know the type of asset documentation you need to provide for the loan. After you submit the documents, the loan strategist reviews your application and documentation for the loan request. Once your loan is approved, you sign the loan in the presence of a notary public and submit the signed papers to the mortgage strategist at Griffin Funding.

Areas We Serve

Griffin Funding is a Michigan mortgage lender capable of providing financing products anywhere in the state. Some of the areas we serve include:

  • Ann Arbor
  • Birmingham
  • Dearborn
  • Flint
  • Grosse Pointe
  • Northville
  • Warren
  • Berkley
  • Clinton Township
  • Detroit
  • Grand Rapids
  • Lansing
  • Sterling Heights

As you can see, we can provide asset-based loans in virtually every part of Michigan. Contact us today to find out if we can help you get an asset-backed loan.

Other Non-QM Loans From Griffin Funding

At Griffin Funding, we offer different types of Non-Qualifying Mortgage loans to help you buy the house of your dreams. Some of the loans we offer include:

  • Bank statement loans
  • Jumbo loans
  • Interest-only loans

The phrase Non-Qualifying Mortgage simply means the loan doesn’t conform to the qualifying loan guidelines as specified by the Bureau of Consumer Protection. Non-QM loans are valid loan products that have a higher risk tolerance than a traditional or qualifying mortgage does. In most cases, you still have to apply for a Non-QM loan as if it were a qualifying mortgage, but the underwriting used to qualify you for the loan is less stringent or doesn’t use a W-2 and tax returns as proof of income.

We also offer VA loans in Michigan and help customers navigate the VA loan process. VA loans allow active service members and qualifying veterans to obtain home loans with no down payment and preferential rates. Griffin Funding mortgage agents know how VA loans work and can help you close on a home with less difficulty.

Begin the application online or request a free quote today!

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Apply for an Asset-Based Loan in Michigan

An asset-based loan makes a lot of sense for a Michigan resident who has assets and needs a cash infusion but doesn’t want to go through a traditional lender or lending process to get a loan. Griffin Funding can help you get an asset-based loan in Michigan, and our lending agents are ready to explain the process, help you identify assets, and get your funding needs met. Give us a call to learn more about our lending products and get started today.