What Is an Asset-Based Loan?
With Ohio asset-based lending, borrowers can use their assets as income. These loans do not require using assets as collateral, so you will not risk losing them if you default on the loan; instead, the property is collateral on asset-based mortgage loans. Several types of assets can be used for these loans, ranging from bank accounts to retirement accounts and other investments.
Ohio asset-based loans are ideal for individuals who deduct expenses from their taxes to reduce their taxable incomes. Since mortgage lenders look at the gross income to determine loan eligibility, some self-employed, retired, or investor borrowers may not qualify for traditional home loans like conventional and FHA loans based on their deductions.
If you do not qualify for a traditional mortgage, you may still qualify for an asset-based loan to secure a home loan for a primary or secondary residence. These loans allow up to 100% of your liquid assets and 70% of investment and retirement accounts to determine how much of a loan you qualify for.
How Do Asset-Based Loans in Ohio Work?
Ohio asset-based loans work similarly to other types of non-QM loans in Ohio. Instead of looking at tax returns to verify income, Ohio asset-based lending providers learn about your assets. With these loans, your assets will not be used as collateral; instead, they are used as income.
The amount of your loan is determined based on a percentage of your assets, and there are several types of assets you can use for a loan, including both liquid and investment accounts. Potential assets you can use to secure an asset-based loan in Ohio include:
- Bank accounts (checkings and savings accounts)
- Certificates of deposits (CDs)
- Money market accounts
- Retirement accounts
- Mutual funds
Benefits of Asset-Based Loans in Ohio
Asset-based loans offer less stringent criteria, allowing borrowers to use their assets as income instead of providing information about their income and job history. Asset-based lending offers the following benefits:
- Streamlined application process
- No income verification is required (No need for tax returns or pay stubs)
- No debt-to-income (DTI) ratio required
- Loan amounts up to $3 million
- As little as 20% down payment
- Credit scores as low as 620 accepted
- Interest-only option available
- Cash-out allowed
How to Qualify for an Asset-Based Loan in Ohio
Ohio asset-based lending requirements vary by lender. However, at Griffin Funding, we require borrowers to have a credit score of at least 620 and have at least a 20% down payment to qualify. Asset-based loans are designed for those who do not qualify for traditional mortgage loans, but anyone can qualify for these loans as long as they have valuable assets they can use as income. In addition, with asset-based loans, your income is not verified, making for a more streamlined application process.
To apply for an Ohio asset-based mortgage, you must determine which assets you want to use to qualify for the loan. Remember, you can use 100% of the value of your liquid assets and 70% of the value of your investment assets to qualify for a loan. Therefore, the more your assets are worth, the higher your loan amount can be.
When you are ready to apply, you can contact Griffin Funding directly to speak to one of your mortgage strategists or begin the online application to declare the assets you want to use for qualification. You can also get a quote to help you determine how much you may qualify for.
Areas We Serve
Griffin Funding serves the entire state of Ohio, offering asset-based loans in the following areas and beyond:
- Bowling Green
- Shaker Heights
Other Non-QM Loans From Griffin Funding
Griffin Funding is the leading provider of non-QM loans in Ohio. With Non-QM loans, you do not have to provide proof of income or job history. Instead, we will use other factors to determine your eligibility and ability to repay the loan. What we use as proof of income and to determine eligibility depends on the type of loan you choose.
If you do not qualify for an asset-based loan, you may still qualify for one or more of our other non-QM mortgages, such as:
- Bank Statement Loans: With bank statement loans, you’ll use your bank accounts to qualify for a loan. Instead of using all of your assets like an asset-based loan, we determine eligibility and loan amounts based on deposits instead of looking at traditional income.
- Jumbo Loans: Jumbo loans allow borrowers to qualify for a loan with as little as 10% down, making them a great option for first-time homebuyers and high earners.
- DSCR Loans: DSCR loans are another loan designed for investors. With these loans, we will determine your eligibility based on your debt service coverage ratio (DSCR).
- Interest-Only Loans: These loans allow you to save on the first ten years of the loan by paying only the interest. During this time, you will not pay your principal amount.
Apply for an Asset-Based Loan in Ohio
An asset-based loan can help borrowers who may not be eligible for traditional mortgage loans secure a loan to purchase their dream homes. Griffin Funding makes applying for an asset-based loan easy with an online application process and mortgage strategists available to answer your questions and help you find the best loan for your financial needs. Contact us today to learn more about our loan offerings.