Asset-Based Loans in South Dakota

No matter where you live — or plan to live —  Griffin Funding is here to provide you with asset-based mortgage loans in South Dakota. From asset-based loans in Sioux Falls to other no-income verification loans in Huron, our services extend to every corner of the state of South Dakota. Some of the cities we serve include:

Ask us about the other South Dakota mortgages we offer to help you find the perfect option for you and your family.

Asset-based loans in South Dakota offer a unique path to homeownership for individuals whose income may not fit traditional mortgage criteria. Tailored for self-employed, retired, and financially diverse borrowers, these asset depletion mortgages base eligibility on the value of liquid assets rather than conventional income verification.

With an asset-based loan, you qualify for a mortgage based on the value of your liquid assets rather than your regular income. This type of loan considers assets such as:

The process for asset-based mortgage loans in South Dakota involves calculating the value of your assets to determine your eligibility and loan amount. Lenders will consider 100% of your liquid assets, such as savings accounts, and up to 70% of retirement accounts if you are of eligible age.

Traditional mortgage lenders in South Dakota often rely on tax returns to assess eligibility, scrutinizing gross income. This can limit qualification prospects for borrowers who take advantage of deductions, reducing their taxable income. 

Asset depletion mortgages provide a viable alternative for individuals such as self-employed professionals, retirees, and those with irregular income patterns. They allow them to leverage their liquid assets for mortgage approval without the constraints of traditional income verification.

While asset-based loans can provide flexibility in income verification and potentially higher borrowing limits, you should always weigh these benefits against factors like higher interest rates and down payment requirements. 

The benefits of South Dakota asset-based loans include: 

• Flexibility in income verification: Asset-based loans are ideal for self-employed individuals, retirees, and those with irregular income streams, as they rely on liquid assets rather than traditional income documentation. 
• Higher borrowing limits: With these loans, borrowers may qualify for larger loan amounts (up to $3 million) based on the value of their assets. 
• Control over assets: Borrowers retain ownership and control of their liquid assets used to qualify for the loan. Choose which investment accounts and savings accounts you want to use to qualify. 
• Streamlined approval: With asset-based loans in South Dakota, there’s less emphasis on traditional income verification, potentially leading to a faster and smoother mortgage approval process. 

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

• Higher interest rates: Asset-based loans may come with higher interest rates compared to traditional mortgages.
• Higher down payment: These loans typically require a minimum downpayment of 20%, whereas conventional loans may accept as little as 3% down.

Asset-based loans are perfect for those who might not fit the mold of traditional income requirements but have substantial liquid assets. These loans can be used for primary homes, second homes, and even investment properties. To get an asset-based loan, lenders focus on the total value of your liquid assets, such as:

• Savings accounts
• Certificates of Deposit (CDs)
• Investment accounts (stocks, bonds, and mutual funds)
• Retirement accounts

Lenders usually count 100% of liquid assets like savings and investment accounts and up to 70% of retirement accounts. For instance, if you have $400,000 in a savings account and $300,000 in a retirement account, you could potentially qualify with $610,000 (100% of $400,000 + 70% of $300,000).

Minimum requirements for asset-based lending in South Dakota include the following: 

• Credit score: You’ll generally need a minimum credit score of 620.
• Asset verification: Be ready to provide documents verifying the value and ownership of your liquid assets.
• Down payment: A down payment of 20% of the property’s purchase price is typically required.
• Age for retirement accounts: If you’re using retirement accounts, you usually need to be at least 59½ years old.

Curious if you qualify? Check out the Griffin Gold app. It offers tools and resources to help you manage your finances and see if an asset-based loan is right for you.

Securing an asset-based loan with Griffin Funding is straightforward and designed to be as smooth as possible. Here’s a step-by-step guide to help you through the process:

1. Pre-approval: Start by completing a pre-approval application. This initial step helps us determine how much you can borrow based on your liquid assets. You can complete this application online or by contacting Griffin Funding directly.
2. Lock in your rate: Once pre-approved, you can lock in your interest rate. This ensures you secure favorable terms for your asset-based loan while you gather the necessary documentation.
3. Submit documentation: Provide the required documentation to verify your assets. This typically includes statements from your savings accounts, investment portfolios, and any other liquid assets you plan to use for the loan.
4. Loan processing: Our team will review your application and assess the value of your assets. This thorough review helps finalize the terms of your loan, ensuring everything is in order.
5. Loan approval and funding: We’ll finalize the loan agreement and schedule your closing once approved. Griffin Funding aims to make the closing process efficient and timely so you can quickly access your funds.

Choosing an asset-based loan gives you flexibility and allows you to achieve your dreams of homeownership. With Griffin Funding as your partner, you’ll benefit from our personalized approach and streamlined process for a seamless and successful lending experience. Get started by applying online or contact us to learn more!