What Is an Asset-Based Loan?
Asset-based loans are non-QM home loans that help more potential borrowers become homeowners. Instead of using a strict approval process that requires pay stubs, tax documents, and job history verification, asset-based lending in New Mexico allows lenders to approve borrowers based on their assets. A borrower can use various types of investments to get approved for a loan instead of using income verification in the form of a salary from an employer.
Similar to other types of loans, asset-based loans still have a minimum credit score and down payment requirement, but these loans can be a good option for individuals who want to use their assets instead of cash to secure a mortgage loan.
Asset-based lending in New Mexico is much more flexible than other types of mortgage options. The only requirement is that borrowers prove they can make their mortgage payments with their assets’ values. These loans are ideal for individuals who may not qualify for traditional loans, especially if their income is seasonal, unpredictable, or their money comes from assets and investments.
If you have difficulty securing a traditional home loan due to employment status or income inconsistencies, your assets may help you get a home loan with less stringent requirements.
How Do Asset-Based Loans in New Mexico Work?
With New Mexico asset-based lending, your assets will serve as income. Lenders allow borrowers to use up to 70% of investment accounts and 100% of liquid assets to determine how much they will qualify for.
In addition, borrowers can choose which assets they want to use to qualify for the loan. For example, you can choose to use stock accounts and your savings account or all your assets, depending on their values. Since asset-based loans do not require you to use your assets as collateral, they are protected. Therefore, if you default on a loan, your assets will not be seized.
Ultimately, the more valuable your assets are, the more you can borrow. In addition, a down payment of 20% is typically required for these non-QM loans, and they may have higher interest rates because they carry more risk for the lender.
Benefits of Asset-Based Loans in New Mexico
One of the reasons why many people choose asset-based loans in New Mexico instead of traditional mortgage loans is because of strict qualification requirements. Traditional loans typically require a certain amount of income, depending on the down payment, credit score, and total price of the home.
Unfortunately, many people fail to meet the income requirements because they take deductions on their tax returns, ultimately lowering their net incomes that lenders use to determine eligibility and loan amounts. With asset-based loans, borrowers do not have to worry about their income. Instead, lenders will look at their ability to repay by reviewing their assets.
Other benefits of New Mexico asset-based / asset utilization loans include:
- No income requirements
- No job history requirements
- Choose the assets you use to qualify
- Eligible for second homes
- Loan amounts up to $3 million
- Interest-only option available
- Cash-out allowed
- Debt-to-Income (DTI) ratio not calculated
- Credit scores as low as 620
How to Qualify for an Asset-Based Loan in New Mexico
While asset-based loans are designed for those who may not qualify for a traditional mortgage loan, anyone can qualify for an asset-based loan in New Mexico as long as they have assets that are valuable enough to cover the cost of the mortgage payment. Because asset-based loans have more flexible requirements than traditional home loans, they offer a streamlined application and approval process.
Ready to find out if you qualify for a New Mexico asset-based loan? Follow these steps:
- Contact Griffin Funding: Contact us before applying online to learn about your mortgage options. We offer several types of non-QM loans, and the best one for you depends on your unique circumstances. Talking with a mortgage specialist can help you find the right loan.
- Fill out our application: Once you’ve determined an asset-based loan is right for you, you can fill out our application online.
- Identify your assets: You can choose which assets to use as income for your home loan. We will require documentation on the assets to prove their values.
- Finalize the loan: Once we have verified your assets’ values and have approved your application, we will let you know when it is time to sign the official documents to finalize your loan.
Areas We Serve
Griffin Funding services the entire state of New Mexico, from Albuquerque to Las Cruces and beyond. A few areas we serve include:
- Santa Fe
- South Valley
- Las Cruces
- Rio Rancho
- Los Alamos
Other Non-QM Loans From Griffin Funding
Griffin Funding specializes in providing mortgage loans. We offer traditional mortgage loans like FHA loans and conventional loans, VA loans, and several other types of non-QM loans. If you find an asset-based loan isn’t right for you, consider one of our other loan options:
- Jumbo loans
- Interest-only loans
- Bank statement loans
- DSCR loans
- Foreign national loans
- Recent credit event loans
Need help determining which loan is right for you? Our mortgage specialists can discuss your options based on the preliminary financial information you share with us. We can help you decide whether you qualify for a traditional loan with lower interest rates or a bank statement loan, or another type of non-QM loan based on your income.
Apply for an Asset-Based Loan in New Mexico
Griffin Funding is the premier provider of home loans in New Mexico. We can help you find the right loan for your unique situation. Asset-based loans are ideal for many different types of borrowers. Whether you’re self-employed, retired, or running your own business, we can help you secure a home loan that gives you more flexibility. Call us today to learn more about asset loans, get a quote, or fill out an online application.