What Is an Asset-Based Loan?

An asset-based loan is a type of non-QM loan with less stringent requirements. With traditional home loans, you must qualify based on your income and job history, which typically requires at least two years in the same job and a net income that is high enough to prove your ability to repay the loan. Unfortunately, many people do not have high enough net incomes to qualify for traditional loans because they’re either retired, self-employed, or have unpredictable incomes.

If you do not qualify for a traditional loan but have enough money in the bank and other valuable assets, you may qualify for an asset-based loan. With an Oklahoma asset-based loan, you can qualify for a home loan using your assets as income rather than collateral.

How Do Asset-Based Loans in Oklahoma Work?

Asset-based loans in Oklahoma work similarly to other types of mortgages. However, instead of using tax returns and pay stubs to prove your income and ability to replay, Oklahoma asset-based lending allows you to use your assets as income.

You can use up to 100% of your liquid assets and up to 70% of retirement and other investment accounts to qualify for a loan and determine how much you’ll get approved for.

Different types of assets you can use to qualify for an Oklahoma asset-based loan include:

  • Checking and savings accounts
  • Certificates of deposits (CDs)
  • Investments
  • Retirement accounts
  • Money market savings accounts

Benefits of Asset-Based Loans in Oklahoma

The most significant benefit of Oklahoma asset-based loans is that you can use your assets to secure a loan instead of using job history or income verification. Asset-based lending does not require you to submit tax returns or any other documentation that states your income.

The benefits of asset-based loans in Oklahoma include the following:

  • Less stringent qualifying requirements
  • Faster application process
  • No tax returns or pay stubs required
  • No debt-to-income ratio required
  • Interest-only option available
  • As little as 20% down payment
  • Can be used for a first or second mortgage

How to Qualify for an Asset-Based Loan in Oklahoma

Asset-based loans have less stringent requirements, so virtually anyone with assets valuable enough to secure the loan can qualify. For example, if you’re retired but currently have enough money in the bank to finance a home purchase, you may qualify for an asset-based loan in Oklahoma.

Oklahoma asset-based lending providers have different approval requirements, but Griffin Funding streamlines the process to simplify it for various borrowers. If you’re considering an asset-based loan for your first or second home, contact us to discuss your goals and needs, and we will help you find the best loan based on your financial situation.

During the application process, you should identify the assets you want to use to qualify; you do not have to use all of your assets. Instead, you can pick and choose which assets you want to use as income. Then, if your application is approved, we will send you a preview offer before reviewing and auditing your assets to determine how much you qualify for.

Areas We Serve

Griffin Funding offers asset-based mortgage loans across the entire state of Oklahoma, including the following areas:

  • Broken Arrow
  • Enid
  • Moore
  • Oklahoma City
  • Edmond
  • Lawton
  • Norman
  • Tulsa

Other Non-QM Loans From Griffin Funding

Non-QM loans are non-conforming loans that do not have the same strict requirements as traditional loans specified by the Bureau of Consumer Protection. These loan offerings have a higher risk tolerance than other types of loans and do not use tax returns and proof of income.

Instead, proof of income varies depending on the type of non-QM loan. Other non-QM mortgage loans we offer include:

  • Bank statement loans: Bank statement loans are similar to asset-based loans, but instead of using any of your assets as income, your ability to repay will be determined only by your bank accounts. Bank statement loans do not require traditional proof of income; lenders will check your bank accounts to ensure you qualify for a loan.
  • Jumbo loans: Griffin Funding jumbo loans with 10% down allow you to borrow up to $3 million. Jumbo loans may be a good option for first-time buyers with good credit debt and high earners who want to invest their cash in other investments.
  • Interest-only loans: Interest-only loans are available for 40-year fixed loans, 30-year fixed loans, 7/1 ARMs, and 5/1 ARMs. With interest-only loans, borrowers only pay interest for the first ten years of the loan, helping them save money upfront.
  • DSCR loans: DSCR loans are only available for real estate investors and allow borrowers to purchase short and longer-term rentals and investment properties without the need to share tax returns. Instead, your ability to repay the loan is determined by your gross rental income divided by the mortgage amount, also known as your DSCR.
  • Recent credit event loans: Recent credit events can cause your credit score to drop significantly, making it challenging to secure a traditional home loan. However, with recent credit event loans, lenders consider other factors in determining your eligibility.

We are not just a non-QM mortgage lender; Griffin Funding offers several types of mortgages, including traditional mortgages like conventional mortgages and FHA loans, and VA loans. Unsure which option is right for you? Contact Griffin Funding to speak to one of our mortgage strategists. We will help you find the right loan based on your unique circumstances.

Begin the application online or request a free quote today!

Apply Now

Apply for an Asset-Based Loan in Oklahoma

Asset-based loans in Oklahoma can help all types of borrowers secure a home loan without traditional income verification. Retirees, self-employed individuals, and investors who may not qualify for other types of home loans may be eligible for asset-based loans that allow them to use their assets as income instead of collateral.

Ready to learn more about asset-based loans? Contact Griffin Funding today to secure an Oklahoma asset-based loan, get a quote, or fill out our online application.