What Is an Asset-Based Loan?
Asset-based lending in Wisconsin allows borrowers to use their assets as income, unlike traditional home loans like FHA, VA, and conventional mortgage loans.
With asset-based mortgage loans, borrowers can use their assets to secure a loan. Assets can include a variety of bank accounts, including checking and savings accounts, investment accounts like stocks, and even retirement accounts.
Asset-based loans are ideal for individuals who take deductions during tax season, reducing their gross incomes. If you don’t qualify for a traditional home loan, you may be able to use an asset-based loan to finance your primary residence, allowing you to use up to 100% of your liquid assets to determine your loan amount.
How Do Asset-Based Loans in Wisconsin Work?
Wisconsin asset-based lending allows you to use your assets as income, not as collateral. Instead, Wisconsin asset-based lending institutions like Griffin Funding allow you to leverage your assets, effectively treating them as income.
Since asset-based lending carries more risk for the lender, you may not be able to use your assets’ entire values for the loan. Instead, your borrowing base—the amount of your loan—is determined based on a percentage of the value of your assets.
There are several types of liquid assets you can use for a loan, including:
- Checking and savings accounts
- Certificates of deposits (CDs)
- Money market accounts
- Mutual funds
With Wisconsin asset-based loans, you can use up to 100% of these assets and 70% of investment and retirement accounts to determine the loan amount you qualify for.
Benefits of Asset-Based Loans in Wisconsin
The most significant benefit of asset-based lending in Wisconsin is the flexibility of the underwriting process when compared to traditional mortgages, VA loans, and FHA loans.
With an asset-based loan, borrowers can secure a home loan without using job history or income verification to qualify; instead, lenders will look at the values of your current assets to determine how much you qualify for.
Other benefits of Wisconsin asset-based loans include the following:
- Minimum credit score of 620 to qualify
- Loan amounts up to $3 million
- You decide which assets you use to qualify
- Second home financing available
- No proof of income or job history verification required
- Streamlined application process
- Interest-only option available
With asset-based loans in Wisconsin, you can expect a faster approval process because lenders have less stringent requirements. With no need for tax returns or pay stubs to see if you qualify, Griffin Funding can offer you faster financing for your dream home.
How to Qualify for an Asset-Based Loan in Wisconsin
Anyone with valuable assets may qualify for an asset-based loan in Wisconsin. Because asset-based loans have less stringent requirements than traditional loans, borrowers can expect a streamlined application and approval process without the need for income verification that may serve as a barrier.
Getting an asset-based loan is fairly straightforward. If you want to know if you qualify, you can follow these steps for applying with Griffin Funding:
- Contact a mortgage strategist: Before you apply, it’s always best to talk to one of our mortgage specialists to ensure an asset-based loan is right for you based on your financial situation. If you don’t qualify for an asset-based loan, we can help you learn about our other mortgage products.
- Fill out our online application: Griffin Funding simplifies the process of applying for a Wisconsin asset-based loan with our online application, which asks for basic information to help us find the right loan for you.
- Identify your assets: You can choose which assets a lender will use to qualify you for a loan.
- Provide documentation: Once you choose the assets you want to use as income, we can review your application.
- Accept terms: Once your application is approved, we can send the final documents to allow you to accept the terms of the mortgage loan.
Areas We Serve
Griffin Funding provides Wisconsin asset-based lending solutions across the entire state of Wisconsin. A few of the areas we serve include:
- Green Bay
- Fond du Lac
- West Allis
Other Non-QM Loans From Griffin Funding
Wondering about your home loan options? Griffin Funding offers several types of non-QM loans, including the following:
- Jumbo loans: Access a large sum of money to purchase a primary or secondary residence with jumbo loans. With our jumbo loans, you only need a 10% down payment, depending on your credit score.
- Bank statement loans: Bank statement loans allow you to use your bank statement loans to secure a home loan. With these loans, we don’t require proof of income with tax returns or pay stubs and will determine your eligibility by looking at your chosen checking or savings accounts.
- DSCR loans: DSCR loans are designed for investors who may not qualify for another type of loan based on the expenses they deduct from their taxes. These loans allow borrowers to qualify based on their DSCR ratio to predict their ability to repay.
- Interest-only loans: With interest-only loans, borrowers can choose to only pay the interest on the loan for a dedicated period of time at the beginning of their loan. These loans allow borrowers who expect their income to increase over time to save money within the first few years of the loan.
- Recent credit event loans: With recent credit event loans, you can qualify for a loan even if you’ve declared bankruptcy or defaulted on a debt.
We also offer traditional mortgages, such as conventional mortgage loans, FHA loans, and USDA loans. In addition, qualifying veterans and their spouses may be eligible for the zero money down VA loan.
Apply for an Asset-Based Loan in Wisconsin
Ready to become a homeowner and think an asset-based loan in Wisconsin is right for you? Contact an asset-based lender in Wisconsin like Griffin Funding. We can help you learn more about whether asset-based loans are right for you and whether you qualify.