Areas We Serve
If you are looking for an alternative to traditional mortgage loans in New Jersey, asset-based loans can be a great option. When you are looking for this type of loan, Griffin Funding is a great option to work with. Griffin Funding offers a variety of alternative lending solutions to borrowers, including asset-based loans and DSCR loans, as well as traditional options like VA loans and Bank Statement Loans.
At Griffin Funding, we offer financing products to all areas of New Jersey. Some of the areas we serve within the state include:
- Upper Montclair
- Jersey City
What Is an Asset-Based Loan?
An asset-based loan is one of several Non-QM loan options offered by Griffin Funding. When taking out a traditional loan, part of the underwriting focus by the mortgage lender will be on your income and your ability to service the debt. However, not all people will be able to meet the qualification and proof of income requirements demanded by traditional home loans.
In these situations, you can still qualify for mortgage financing with an asset-based loan if you have assets you are able to leverage. When underwriting this type of loan, the lender will verify all money that you have in bank accounts, investment accounts, cash value of life insurance plans, and retirement accounts.
Once your assets have been appraised, we will provide you with the interest rate you qualify for. If you have between 5 and 10 years of payments available, you could qualify for an asset-based loan.
How Does Asset-Based Lending Work in New Jersey?
Asset-based lending in New Jersey is an alternative approach to underwriting and approving mortgages in New Jersey. As opposed to spending time assessing your income, the lender will largely focus on your liquid assets. The process will start with the lender asking you to list all of your deposit accounts and other liquid assets including checking and savings accounts, CDs, retirement accounts, and liquid life insurance plans.
Based on this information, they can provide initial feedback surrounding what type of loan you may qualify for. This analysis will take other factors into consideration as well, including your down payment, credit score, and if you have some level of income to offset liquidity needs.
Once you have decided to move forward with the loan, the lender will more thoroughly audit and validate all of this information. Generally, the lender will want you to have between 5 and 10 years’ worth of monthly mortgage payments on hand to close on the loan.
Types of Assets That You Can Utilize
There are various types of assets that you can borrow against when you take out an asset-based loan. The types of liquid assets that you may be able to use when getting an asset-based loan in New Jersey include:
- Checking and savings accounts
- Certificates of deposit (CDs)
- Money market accounts (MMAs)
- Mutual funds
- Individual stocks and bonds
In some cases, personal finance and asset statements from high-net worth individuals can also be considered.
Benefits of Asset-Based Loans
Asset-based loans continue to be a good financing solution for those in New Jersey. One of the main advantages of this type of loan is that it can allow you to qualify for a mortgage even if you do not have a consistent form of income. Instead, your assets are used to qualify you for a loan, which can allow you to get a competitive rate and purchase a home that you want.
Another advantage of these types of loans is that there is more flexibility. With an asset-based loan, you can borrow up to $3 million, get a loan with a credit score as low as 620, do a cash-out financing, and even opt for interest-only repayment terms. This is much more flexible than traditional mortgages, which tend to have more rigid structural requirements.
Other Non-QM Loans From Griffin Funding
While Griffin Funding offers flexible asset-based loans for your real estate purchase needs, we also offer many other types of Non-QM loans. Some of the other loan products to consider are as follows:
- Bank statement loans allow you to qualify for financing based on a series of bank statements rather than your income level or tax returns. These loans are ideal for self-employed individuals without recurring income.
- DSCR loans are great financing options for those who are looking to purchase an investment property. These loans will underwrite the potential rental income, and underwriting will be based on whether rental income can cover the proposed loan payments.
Griffin Funding also offers more traditional loans, but with flexible terms. This can include providing interest-only financing for a period of time, loans for those with low credit scores, or even jumbo loans with lower down payments.
Apply for an Asset-Based Loan in New Jersey
If you are looking to purchase a home and need an alternative mortgage solution, asset-based loans in New Jersey could be right for you. You should contact our team at Griffin Funding today to learn more about the New Jersey asset-based lending program and whether it is right for you and your situation. We can answer any questions you have and even help you get started with the application process today.