Asset-Based Mortgage

Asset-Based Mortgage

An asset-based mortgage allows you to leverage your assets to qualify for a loan, even if you don't have a traditional income. This type of mortgage generates an 'income stream' from your assets by depleting them over the mortgage term, making it a viable option for those without regular income.

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Cox Home Loans/ asset based mortgage

myths and facts

Income Requirement
Asset Types
Interest Rates
Asset Liquidation

Income Requirement

Myths

A high monthly income is required to qualify for an asset-based mortgage.

Facts

Asset-based mortgages prioritize your assets, not your income, making them suitable for those with irregular or lower income.

Asset Types

Myths

Only cash and savings are considered for asset-based mortgages.

Facts

Lenders consider a variety of assets, including investments, real estate equity, and retirement accounts.

Interest Rates

Myths

Asset-based mortgages have higher interest rates than traditional loans.

Facts

Interest rates can be competitive, especially for borrowers with significant assets and good credit.

Asset Liquidation

Myths

You must liquidate your assets to qualify for an asset-based mortgage.

Facts

Lenders use imputed income from your assets, allowing you to keep your investments intact.

What Are Asset-Based Loans & Mortgages?

Asset-based loans, also known as asset utilization loans, use your assets as a basis for income qualification. These loans are ideal for retirees with limited income, new businesses, or established companies needing to maintain high cash flow. Asset-based loans and mortgages have become increasingly popular due to their flexibility and the benefits they offer to various borrowers.

Advantages of Asset-Based Mortgages

Asset-based mortgages come with several unique benefits:

  • Utilize Your Assets: This program allows you to use your retirement savings and other assets to qualify for a mortgage, whether for purchasing a home or refinancing. Your loan amount and monthly payments are based on the value of your assets.

  • Minimal Income Requirement: Even if you have a small amount of verifiable income, asset-based mortgages can still be an option. These loans enable those with fixed incomes and substantial assets to secure financing.

  • Preserve Your Investments: Rather than using all your assets upfront, you can get a mortgage that allows you to keep your investments intact, giving them the opportunity to grow while you invest in a home.

Why Are Asset-Based Mortgages Essential?

Asset-based mortgages are crucial for individuals with significant assets but limited income. They allow you to qualify for a mortgage using your liquid assets without needing to invest all your money into the home upfront. This approach helps you preserve and potentially grow your assets while still securing the financing needed to purchase or refinance a property.

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The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.
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