Asset-Based Loans in Vermont

Discover the flexibility of an asset-based loan in Burlington and other cities across Vermont with Griffin Funding. From bustling Burlington to smaller towns like Montpelier and Stowe, our services extend statewide to ensure you find the right financing for your real estate needs.

Cities we serve include:

Asset-based loans in Vermont, also known as asset depletion mortgages, leverage your liquid assets, such as savings, investments, and retirement accounts, to determine your eligibility for a mortgage. Unlike traditional loans that rely heavily on income verification, asset-based loans assess your ability to repay based on the total value of these assets.

Typically, lenders consider 100% of your liquid assets, such as savings and investment accounts, and up to 70% of your retirement accounts if you’re eligible. This approach provides flexibility for borrowers with irregular incomes or who are self-employed, making homeownership more accessible in Vermont.

You can use asset-based loans for residential, commercial, and investment properties. If you’re an investor looking for another flexible loan option, consider DSCR loans in Vermont. With these loans for investors, you can qualify based on the rental property’s income potential rather than your own personal income.

Considering an asset-based mortgage loan in Vermont? Here’s a look at the advantages and considerations.

Pros of asset-based loans in Vermont include: 

• Flexibility in income verification: These no-income verification loans are ideal for freelancers, retirees, and individuals with unconventional income sources because they allow qualification based on liquid assets rather than traditional income documentation.
• Higher borrowing limits: Based on the value of your assets, you can access larger loan amounts, up to $3 million, providing greater financial flexibility.
• Asset control: Borrowers retain ownership and control over their liquid assets used for qualification, choosing which accounts to leverage.
• Efficient approval: Enjoy a streamlined approval process with asset-based loans, as they typically require less scrutiny of traditional income sources.

Cons of Vermont asset-based loans are:

• Higher interest rates: Asset-based loans generally come with higher interest rates than conventional home loans because they’re a higher risk for lenders.
• Increased down payment: Expect a minimum down payment of 20%, which is higher than the down payment requirements for conventional loans.

Asset-based lending in Vermont is designed for individuals who may not meet strict income requirements but have significant liquid assets. Qualification for asset-based loans focuses primarily on the value of these assets rather than traditional income verification.

As discussed, lenders consider 100% of liquid assets such as savings accounts and certificates of deposit (CDs) and up to 70% of retirement accounts if the borrower is eligible (usually age 59½ or older).

For example, if you have $500,000 in savings and $400,000 in a retirement account, you could potentially qualify for a loan using $500,000 (100% of savings) plus $280,000 (70% of retirement account), totaling $780,000 in asset value for loan qualification purposes.

Key eligibility criteria for asset-based lending in Vermont include:

• Credit score: Lenders like Griffin Funding like to see a minimum credit score of 620.
• Asset verification: Detailed documentation proving ownership and current value of liquid assets is necessary.
• Down payment: A higher down payment, usually around 20% of the property’s purchase price, is typically required.
• Age for retirement accounts: If using retirement accounts for qualification, you generally need to be at least 59½ years old to count 70% of their value.

Wondering if an asset-based loan is right for you? Download the Griffin Gold app today to explore your financing options and get one-on-one support from a mortgage professional.

Securing an asset-based loan with Griffin Funding in Vermont is a streamlined process designed to help you achieve your goals without the usual hassle. Here’s how we make it happen:

1. Get pre-approved: Start by filling out a pre-approval application online or by reaching out to Griffin Funding directly. This step helps you see how much you can borrow based on the value of your liquid assets.
2. Lock in your rate: Once pre-approved, you can lock in your interest rate. This ensures you get favorable terms while you gather the necessary paperwork.
3. Submit your documents: Provide documents to verify ownership and the value of your assets, like statements from savings, investments, and retirement accounts you plan to use for the loan.
4. Process and review: Griffin Funding’s team will carefully review your application and assess your assets to finalize your loan terms.
5. Approval and closing: Once approved, Griffin Funding will finalize your loan agreement and set a closing date. Our goal is to make the closing process efficient so you can get the funds you need for your Vermont property or investment.

With Vermont asset-based loans from Griffin Funding, you have options when it comes to securing a home loan. 

When you choose Griffin Funding, you’re choosing expertise in asset-based lending. Our team specializes in understanding how to leverage your liquid assets to secure the financing you need. We’ve streamlined the entire process from start to finish, making it straightforward to get pre-approved and lock in a competitive interest rate. 

Simply submit your documents verifying your assets, and our team will handle the rest, ensuring a smooth approval and closing process. Start your homeownership journey by filling out an online application or contact us to learn more about the home financing options we have available.