What Is an Asset-Based Loan?
Asset-based lending provides a home loan contingent on assets. Assets utilized can include securities, checking, savings, bonds, retirement.
This loan type is suited for borrowers with ample assets but little income or poor credit. North Carolina asset-based loans do not require that you liquidate the assets. Instead, you borrow money using the assets as income. Asset based loans do not require you to pledge your assets as collateral. Learn more about the benefits of these loans and how they work.
How Do Asset-Based Loans in North Carolina Work?
Asset-based loans do not have the same requirements as traditional loan products. It’s important to understand that you’re simply using the value of your assets to show your ability to repay. So, ensure that you’ll be able to make the monthly payments before signing on the dotted line.
Here’s how asset-based lending in North Carolina works: Once the lender verifies the value of the assets, you can borrow up to a specified percentage of that amount. This is the borrowing base.
For example, with an asset-based mortgage, you can borrow up to 70% of the value of your investment or retirement accounts. However, you can borrow up to 100% of your bank account value or other liquid assets.
Let’s say you have $300,000 in liquid verifiable assets and your mortgage is $5,000 per month. You have 60 months’ worth of assets to repay the loan.
In other words, lenders will consider the total loan amount you’re asking for and divide it into 5 to 10 years’ worth of payments, depending on what type of loan you get.
Benefits of Asset-Based Lending in North Carolina
There are many benefits to seeking out North Carolina asset-based loans. You can qualify for a mortgage based on the value of assets you already own. At Griffin Funding, you may qualify for up to $3 million in financing. That’s a lot of spending power.
Because you already have the assets to cover the loan payments, you can get approved even with a low income level. Additionally, there are many types of assets you can use to qualify for the loan. If you have a primary home and want to borrow the money for a second mortgage, an asset-based loan could be a good option.
In many cases, asset-based lenders don’t calculate a debt-to-income (DTI) ratio since the loan is tied to assets you already have. Additionally, there is often a cash out allowance that may leave you with a little extra money to do renovations or take care of other costs associated with your investment.
With an asset-based loan in North Carolina, you can put your valuable assets to good use. This is a great way to build wealth if you are asset-rich and cash-poor. Whether you need cash to expand your business, purchase a home, consolidate debt, or do home improvements, an asset-based loan might make sense for you.
In many cases, you won’t pay as much to process the loan, and the funding will go through quicker than traditional loans. Keep in mind that you’ll still have to pay an annual percentage rate (APR) for the convenience of borrowing the money.
How to Get an Asset-Based Loan in North Carolina
Asset-based lenders in North Carolina go through a series of steps, which your Griffin Funding mortgage lenders will facilitate. Here’s an overview of what to expect:
- Reach out to a Griffin Funding mortgage strategist to discuss the best loan products for you.
- Fill out an online loan application to start the process.
- Identify the assets you wish to use. Remember that the value must be verifiable.
- Provide necessary documentation that will help prove the value of the assets.
- Once all the paperwork is in, one of our lenders reviews the application and documentation.
- Once your loan is approved, you can sign the final loan document with a notary present.
The asset-based loan approval process typically takes days instead of weeks and involves far fewer hurdles to jump through.
Areas We Serve
Griffin Funding is proud to offer asset-based loans across North Carolina. Below are just some of the areas we serve:
- Wesley Chapel
- Oak Ridge
- St. James
As you can see, Griffin Funding can provide asset-based loans virtually anywhere in North Carolina!
Other Non-QM Loans From Griffin Funding
In addition to asset-based loans in North Carolina, we also offer several other types of Non-Qualifying Mortgages (Non-QM loans), including the following:
- Jumbo loans: Our jumbo loans require only a small down payment.
- Interest-only loans: These loans give you a breather for the first few years of your home mortgage loan. You only pay the interest instead of the interest plus the principal for a specified time.
- Bank statement loans in North Carolina: You can use bank statements (typically two years’ worth) to prove your income. This is a good alternative for self-employed people who don’t have paychecks to show to lenders.
- DSCR loans in North Carolina: Debt service coverage ratio (DSCR) loans use the cash flow of your existing rental or investment properties to qualify you for financing.
Apply for an Asset-Based Loan in North Carolina
An asset-based loan in North Carolina allows individuals who may not qualify for a traditional mortgage to access financing. If you have valuable assets that you can use as collateral, consider an asset-based mortgage in North Carolina.
Ready to begin the process of obtaining an asset-based loan in North Carolina? Contact Griffin Funding to get the process started today or fill out an online application.