Asset Based Collateralized Lending

In this niche type of mortgage financing, borrowers may collateralize (or lend against) liquid assets to serve as a replacement for down payment monies to secure home financing. This financing option is not for everyone. Typically, borrowers who have significant incomes and liquid assets, a strong understanding of cash flow optimization and loan sizes of $800,000+ qualify and prefer this type of unique financing option. Minimum 720+ credit score required to obtain financing. Up to 90% financing available.

For example, Mr. Smith wants to purchase home for $2,000,000. Traditional financing would require him to put down 40% or $800,000. He has the money to do so, but would prefer to keep his money invested and earn a larger ROI (return on Investment) from his current allocation and diversification, than putting that money into a home. This program allows Mr. Smith to put only 10% down in liquid money ($200,000) and the remaining $600,000 will be collateralized. Therefore Mr. Smith can purchase the home he desires and continue to keep his remaining monies invested how he chooses, which allots for the ability to maximize his investments.

This program has many wonderful advantages such as: capital gains avoidance, gift tax avoidance, ability to control asset allocation and managing institution.