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 & liquid assets, a strong understanding of cash flow optimization and loan sizes of $800,000+ qualify & 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 & diversification, than putting that money into a home. This program allows Mr. Smith to put only 10% down in liquid money ($200,000) & the remaining $600,000 will be collateralized. Therefore Mr. Smith can purchase the home he desires & 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 & managing institution.