Asset-Based Loans in Rhode Island

Whether looking for an asset-based loan in Newport, Pawtucket, or anywhere in between, we’re ready to help you finance your dream home with asset-based loans in Rhode Island. A few areas we serve are:

Rhode Island asset-based loans, also known as asset depletion mortgages, provide a flexible financing option for borrowers who don’t qualify for conventional mortgages due to irregular income or significant tax deductions. These no-income verification mortgages are ideal for self-employed professionals, business owners, contractors, freelancers, retirees, and others with substantial liquid assets. 

With these loans, borrowers can use liquid assets such as bank accounts, investment accounts, retirement funds, money market accounts, and certificates of deposit (CDs) as income. Non-liquid assets such as real estate, fine art, or vehicles don’t qualify. 

Unlike traditional loans that rely on a steady income from employment, asset-based mortgage loans in Rhode Island calculate qualifying income based on the value of your liquid assets. However, you can’t always use 100% of the value of all your assets to qualify. For instance, Griffin Funding lets you use up to 70% of the value of retirement and investment accounts and 100% of your liquid assets like bank accounts as income. 

Rhode Island asset-based loans are structured to accommodate the borrower’s unique financial situation. Like all home loans, interest rates and terms depend on credit score, loan amount, and down payment. 

Asset-based loans can be used for residential and commercial properties. Looking for ways to finance investment properties without using income to qualify? While asset-based loans are a potential avenue, investors may benefit from DSCR loans in Rhode Island as well, which allow you to qualify based on the property’s potential rental income.

Asset-based loans offer a unique approach to financing your home that can help certain borrowers in the state of Rhode Island. However, like all home loans, you should always consider the pros and cons. 

The potential benefits of asset-based loans include: 

• Flexibility in income qualification: Asset-based loans in Rhode Island allow borrowers with irregular income or significant tax deductions to qualify based on their liquid assets rather than traditional income metrics like salary. 
• Access to financing: These loans provide an option for self-employed individuals, business owners, contractors, retirees, and others who may struggle to qualify for conventional mortgages. 
• No income verification: Income doesn’t have to be factored into loan approval. Instead, the focus is on the value of your liquid assets. 
• Fast approval process: Asset-based loans typically have a faster approval process because lenders primarily assess the value and liquidity of the borrower’s assets rather than verifying employment and income. 

Asset-based loans aren’t for everyone. The potential downsides include: 

• Higher interest rates: Rhode Island asset-based loans may come with higher interest rates than other mortgages because they’re a higher risk for lenders.
• Limited eligibility: Not all types of assets qualify, and borrowers must have sufficient liquid assets to meet lender requirements, limiting eligibility for some individuals. 

Unfortunately, not everyone qualifies for asset-based lending in Rhode Island. These loans are designed to cater to those who may not qualify for conventional home loans due to large tax deductions from self-employment or a lack of steady income. 

To qualify for an asset-based loan, borrowers typically need to meet certain requirements, such as: 

• Age requirement for retirement accounts: If you plan on using your retirement accounts to qualify for an asset-based loan in Rhode Island, you must be at least 59 ½ years old. This age requirement aligns with the IRS regulations governing withdrawals from retirement funds without penalties. 
• Asset value: The primary qualification for asset-based lending in Rhode Island revolves around the value of your assets. Lenders like Griffin Funding allow borrowers to use a portion of their retirement and investment accounts as qualifying income and liquid assets like bank accounts. 
• Credit history: Lenders will still consider creditworthiness by looking at your credit score. Griffin Funding requires a minimum credit score of 620 to qualify for asset-based loans in Rhode Island. 
• Asset documentation: Borrowers must provide documentation proving ownership and the current value of the assets they intend to use as income. This includes statements from financial institutions detailing account balances and holdings. 
• Down payment: When taking out an asset-based loan, prepare to make a down payment of at least 20% of the home’s purchase price. 

Wondering if you qualify for asset-based lending in Rhode Island? Download the Griffin Gold app today to manage your assets, use tools like calculators to determine your potential mortgage payments, and communicate directly with our mortgage specialists.

Griffin Funding aims to complete your loan process within 30 days or less. Preparing your paperwork ahead of time and maintaining clear communication can help expedite the process. Here’s how to get a Rhode Island asset-based loan from Griffin Funding: 

1. Mortgage pre-approval: We always recommend getting preapproved for a mortgage of any kind to help you understand your budget and give you more negotiating power when it comes time to make your offer on a property. 
2. Lock in your rate: We can lock in your interest rate based on agreed terms to help you secure the lowest rate possible. 
3. Mortgage application: Once your rate is locked in, we’ll send you the initial application and disclosures. You’ll also receive a checklist of required documents, which you can submit via fax, digital platform, or overnight delivery. 
4. Loan process: Our team will prepare your file for underwriting, verify your information, and check for potential issues. 
5. Appraisal and pest inspection: We order an appraisal to ensure the home’s value matches the purchase price. You can arrange a pest inspection with assistance from our loan specialists. 
6. Approval: We’ll contact you upon loan approval for any additional items needed to finalize your loan documents. 

Ready to get started? We’re committed to providing personalized support throughout the entire loan process, from pre-approval to funding. Don’t let irregular income or credit challenges stand in your way — fill out an online application or contact us today to learn how asset-based loans in Rhode Island can help you purchase your dream home.