Asset-Based Loans in North Dakota

Griffin Funding extends our asset-based loans in Fargo and throughout the entire state of North Dakota. Whether you live in the city or a quiet town, our expertise in asset-based lending is available statewide. We serve:

Asset-based loans are designed for borrowers who might struggle to get traditional mortgage loans in North Dakota because of seasonal or inconsistent income or significant tax deductions from running a business. Self-employed professionals, business owners, contractors, freelancers, and even retirees and investors fall into this category. If you cannot get approved for a conventional loan, you may still qualify for an asset-based loan based on the value of your assets. 

Instead of relying on income documentation like W-2s or tax returns, these loans assess your eligibility based on your liquid assets, such as:

For these loans, 100% of your liquid assets are counted toward your qualifying income, and up to 70% of your investment and retirement savings accounts can be used to determine your eligibility. 

For example, if you have $400,000 in liquid assets and $300,000 in retirement and investment accounts, you could use the full $400,000 plus 70% of the $300,000 (which is $210,000) to qualify, giving you a total of up to $610,000 in qualifying assets.

With this approach, asset-based loans provide a flexible and accommodating pathway to homeownership, catering to those whose financial situations may not fit the mold of traditional lending criteria.

Asset-based loans offer a unique alternative to traditional mortgages, providing opportunities for those with significant assets but irregular income. While these loans have several advantages, they also come with certain drawbacks. 

The pros of North Dakota asset-based loans are: 

• Flexible qualification: Eligibility is based on liquid assets rather than traditional income verification, making it accessible for self-employed individuals, retirees, and others with inconsistent income.
• High borrowing limits: You can access substantial loan amounts (up to $3 million), depending on the value of your assets.
• No income documentation: With this type of no-income verification mortgage, you can skip needing W-2s, pay stubs, and tax returns. Your assets are the primary factor in determining your loan eligibility.
• Faster approval process: With less emphasis on detailed income verification, the approval process can be quicker and more straightforward.
• Buy investment properties: Asset-based loans can be used to finance investment properties and second homes, not just primary residences.

The potential downsides of asset-based mortgage loans in North Dakota include:

• Higher down payment: These loans often require a higher down payment compared to other mortgage types, typically around 20% of the property’s purchase price.
• Higher interest rates: Interest rates may be higher than traditional mortgages, reflecting the increased risk for lenders.
• Risk of losing assets: These asset depletion loans come with the risk of losing your home if you’re unable to pay back the loan amount.
• Limited lender options: Not all lenders offer asset-based loans, which can limit your choices and potentially make the process more complex.

Qualifications for asset-based lending in North Dakota vary by lender. These requirements ensure borrowers have enough financial stability and asset value to support the loan amount. 

North Dakota asset-based loans are ideal for individuals with substantial liquid assets but may not meet traditional mortgages’ stringent income verification requirements. These loans are tailored to:

• Self-employed individuals: Those with fluctuating incomes who find it challenging to document their earnings through traditional means.
• Retirees: People with significant savings and investments but limited monthly income.
• Business owners: Entrepreneurs who benefit from tax write-offs that lower their reported income.
• Contractors and freelancers: Professionals with irregular pay schedules.
• Investors: Individuals with significant assets looking to finance real estate investments. 

To qualify for an asset-based loan, you typically need to meet the following criteria:

• Credit score: A minimum of 620.
• Down payment: At least 20% of the property’s purchase price.
• Age requirement: If using this mortgage for retirees based on retirement accounts, you must generally be at least 59 ½ years old to count those assets.

Griffin Funding makes the process of obtaining an asset-based loan straightforward and efficient. Here’s how our application process works:

1. Pre-approval: Start by completing a pre-approval application online or by contacting Griffin Funding. This step determines the loan amount you may qualify for based on your assets.
2. Rate lock: Once pre-approved, you can lock in your interest rate to secure favorable terms for your North Dakota asset-based loan.
3. Submit documentation: Provide necessary documentation, such as statements verifying ownership of your liquid assets. 
4. Loan processing: Griffin Funding will review your application and assets to finalize the loan terms. This includes evaluating the value of your assets to determine the loan amount.
5. Loan approval and funding: Upon approval, we’ll finalize the loan agreement and schedule closing.

Asset-based loans provide a flexible financing solution by leveraging your liquid assets, making them ideal for borrowers with inconsistent income or even those without a traditional job. Fill out an application or contact Griffin Funding today to explore how our asset-based loans can help you achieve your homeownership dreams in North Dakota.

Not ready to apply? Download the Griffin Gold app today to manage your finances and monitor your credit. Use various tools to help you determine the right time to apply for a mortgage and discover your options.