If you’ve ever tried to get a mortgage as a freelancer, entrepreneur, or self-employed professional, you know that income isn’t always predictable, and traditional lenders can be strict. With asset-based lending, you get a flexible way to secure a mortgage even if your income doesn’t fit the conventional mold.

Simply put, asset-based lending is when lenders consider your assets—such as savings accounts, investments, or other valuable holdings—rather than relying solely on your W-2s or pay stubs. The idea is that if you have the financial means to repay a loan, your assets can stand in as proof, giving you options that might otherwise be out of reach.

Who Is Asset-Based Lending For?

Asset-based mortgages are ideal if you:

  • Are self-employed or freelance, and your income fluctuates month-to-month
  • Have irregular income from commissions, bonuses, or multiple revenue streams
  • Want to purchase investment properties or second homes without traditional verification
  • Have substantial savings or investment accounts, but don’t meet conventional lender requirements

Basically, if your financial life doesn’t look like a traditional 9-to-5 paycheck on paper, asset-based lending can help.

How Asset-Based Lending Works

Instead of looking at your income statements alone, asset-based loan lenders assess your liquid and near-liquid assets, including things like:

  • Checking and savings accounts
  • Stocks, bonds, and mutual funds
  • Retirement accounts (401k, IRA, etc.)
  • Other real estate or high-value assets

The lender calculates your ability to pay based on the value of these personal or business assets, sometimes requiring a slightly higher down payment or interest rate, but offering flexibility where traditional loans fall short.

Why Asset-Based Mortgages Can Be a Smart Move

  1. Flexibility: You’re not tied to conventional income verification, so self-employed professionals, investors, or freelancers have a real shot at approval.
  2. Faster Approvals: Asset-based lenders know the process and often move more quickly than banks that are weighed down by paperwork.
  3. Access to Higher Loan Amounts: If your assets are substantial, they can help you qualify for a larger mortgage.
  4. Peace of Mind: Your financial strength is recognized, even if your income isn’t “traditional.”

Things to Keep in Mind

  • Documentation is still key: You’ll need to provide statements for your accounts, investment portfolios, and other assets.
  • Rates and fees can vary: Because asset-based loans carry more risk for the lender, rates may be slightly higher than those for conventional loans.
  • Not all assets qualify: An asset-based lender typically counts only liquid or near-liquid assets that can be readily converted to cash if needed.

Partner with Homespring Mortgage for Asset-Based Lending in Charleston, SC

Asset-based loans open doors for borrowers who don’t fit the traditional mold but still have the financial means to repay a mortgage. It’s a powerful tool for self-employed borrowers, investors, and anyone with irregular income who wants a home, a second property, or an investment opportunity.

If your income isn’t conventional but you have assets, talk to an asset-based lending team like the one at Homespring Mortgage. They’ll help you figure out how to leverage your financial strength to make homeownership a reality. Reach out to learn more.