Asset Utilization Mortgages and Loans

High net-worth individuals and companies often prefer funding purchases with asset-based loans. These loans rely on calculating the value of your assets instead of income-based calculations.

Asset-based mortgages and loans can be beneficial in many situations. Many retirees living on fixed incomes, new business owners, and others with extensive assets can benefit from utilizing what they own for funding purposes.

How Does an Asset Utilization Loan Work?

The way asset-based loans work is simple to understand. This lending option means borrowing against your assets without depending on your income or cash flow.  After calculating your assets, a lender establishes your borrowing limit based on a percentage of your assets’ value. Your lender will also determine the exact terms of an asset utilization loan.

People commonly utilize what they own for asset-based mortgages. If you want this type of mortgage, you can utilize 100% of your liquid assets (what’s in your bank accounts). However, you may only use up to 70% of what’s in your investment and retirement accounts.

Benefits of Asset-Based Financing

Asset utilization is primarily beneficial for someone with significant assets, especially if they’re not earning a lot of income or want to keep their cash flow high. Asset-based mortgage is best for home buyers and homeowners with significant assets while benefiting from an alternative loan.

Asset-based financing is also beneficial for property buyers. Unlike a reverse mortgage, you can apply for an asset-based loan for a second property that’s not your primary residence.

Asset-based loans can help you leverage your assets. Let the experts at Lend 4 You use our connections and expertise to help you secure asset-based financing. Call Lend 4 You at (855) 215-1111 or contact us online for your free consultation.