A Deep Dive to Asset-Based Mortgages in Florida


If your income stream is irregular but you have high-value assets, an asset-based mortgage might be for you.

This type of loan allows you to use your existing assets—such as investments or savings—to qualify for a commercial real estate lender Florida. It’s suitable for high-net-worth individuals, business owners, and retirees who do not receive a paycheck regularly.

Unlike traditional commercial mortgages, these financing solutions focus on the borrower’s existing assets instead of their income. This is why lenders can verify income sources without verifying income sources. This flexibility makes it more accessible to borrowers who find it challenging to fulfill conventional loan requirements.

Keep reading to learn more about asset-based mortgages and how they might help you finance a commercial real estate property in Florida. 

Understanding what an asset-based mortgage means

When you apply for an asset-based mortgage, you do not need to present traditional income documents to your lender. This means there’s no need to prepare tax returns, W2s, and paystubs. Instead, you qualify with your holdings.

The lender will base their decision on your retirement accounts, money market accounts, and other verified liquid assets. This loan might work for you if you have limited regular income but significant savings.

In asset-based lending, lenders examine a borrower’s total wealth. This makes it possible for self-employed individuals and retirees to secure funding for commercial real estate, even if they lack predictable monthly earnings.

It’s important to clarify that asset-based mortgages are not the same as hard money loans, which depend on the value of real estate.

Additionally, approval does not depend on your credit score. Instead, your bank statement and portfolio will prove your capacity to repay the loan. The approval process is based on your financial reserves, not your future cash flow.

What liquid asset types are accepted for asset-based mortgages?

Since an asset-based mortgage lets you qualify for a commercial real estate loan with your assets, lenders will check these liquid assets to determine your eligibility:

  • Savings and checking accounts: It’s easy to access your money in these accounts, allowing lenders to verify them quickly.
  • Retirement accounts: A lender can consider 401 (k)s and IRAs if these enable easy loans or withdrawals against the balance.
  • Investment accounts: These include mutual funds, stocks, and bonds. Moreover, they can convert other investments into cash or sell quickly.
  • Certified Deposits: These may be time deposits, but they can be liquidated and considered stable assets.
  • Money market accounts: These accounts are easier to access and have higher interest rates than regular savings accounts.
  • Cash: With proper documentation, physical cash can be a liquid asset.

The importance of liquid assets

The aforementioned “liquid” assets are crucial because they are easily accessible and can quickly turn into cash— unlike collectibles, real estate, and other non-liquid assets. Having cash readily available shows lenders you have the resources to handle loan payments.

Benefits of asset-based mortgages

  • You don’t need a steady income stream or show tax returns. Your assets will tell the lender everything they should know to decide whether you qualify for a loan. This flexibility could open opportunities for higher loan amounts.
  • In traditional loans, you can expect interest rates to be high if you have a rocky credit history. On the other hand, interest rates are more competitive in asset-based loans, and lenders will not mind your history of financial mistakes.
  • Asset-based loans can be used on various commercial real estate properties, such as offices, self-storage, and light industrial.
  • Compared to cash flow lending, asset-based mortgages have fewer financial obligations. Borrowers can apply asset depletion methods to use saved capital for mortgage payments.
  • Reputable lenders offer better loan terms with wholesale rates for asset-based lending. Plus, they don’t make you go through conventional income verification.

Requirements and eligibility for asset-based loans

  • Credit score: Most lenders require a minimum score of 660.
  • Loan amounts: Depending on the lender, you can borrow anywhere from $2 million to $50 million.
  • Transaction type: Purchase, refinance cash out, or refinance.
  • Down payment: Most lenders require a minimum 20% down payment.
  • Acceptable assets include your investment portfolio, retirement accounts, and other asset types.
  • Proof of assets: Show documentation relevant to the assets you plan to use as collateral.
  • Personal information: Your name, contact details, loan amount, and state of residence.
  • Asset requirements: All assets must be 110% of your loan amount after the down payment and closing costs are considered.
  • Additional documents: Lenders may ask for your credit history and other relevant financial documents.

Calculating asset-based mortgages

Different lenders might use other ways to calculate asset-based loans in Florida, but the two most common are the following:

  • 60-month calculation method: Divide the total assets by 60 to determine the borrower’s monthly income from these assets.
  • 84-month calculation: Divide the total assets by 84 to find the qualified monthly income.

With these calculation methods, lenders do not have to look at your tax returns. They only need proof of your investment and liquid accounts. This simplifies the process of securing asset-based mortgages for borrowers.

Eligible properties for asset-based mortgages in Florida

Many commercial real estate properties qualify for an asset-based mortgage, including the following:

  • Multi-family
  • Retail
  • Luxury Residential
  • Office
  • Light Industrial
  • Urban land
  • Self-storage

Investors can also refinance a property using these flexible asset-based loans.

Understanding the pros and cons of asset-based loans

Pros of asset-based mortgages in Florida

  • As a borrower, you must not provide tax returns and other documentation. This speeds up and simplifies the application process if you have irregular or unconventional income streams.
  • The approval process is fast because lenders look at your assets instead of your income.
  • Competitive interest rates are another benefit. Asset-based loans generally have lower rates, especially if you have significant assets.
  • Larger loan amounts are available. You can borrow up to $50 million if your holdings are sizable.
  • You can use savings accounts, bonds, stocks, and other liquid assets.
  • The qualification process is also simple. Lenders will look at the liquidity and value of your assets instead of your employment history or credit score.

Cons of asset-based loans

  • While you don’t have to provide income documentation, your application will be subject to stringent scrutiny. Lenders have strict standards and procedures for assessing an asset’s liquidity and value.
  • Asset-based mortgages generally have competitive interest rates, but in most cases, these rates are still higher than traditional loans. This is because lenders take on more risk by relying on assets that can fluctuate in value.
  • Not all types of business assets can serve as collateral. The specific types of assets a lender will accept depend on their policies. Just because something is valuable doesn’t mean it can be acceptable collateral for your situation.
  • Some asset-based loans involve additional fees that can cause the cost of borrowing to balloon. This is why you need to work with a dependable CRE financing specialist who can arrange a fair deal for you.
  • Some types of assets may depreciate. And when they do, they can affect your eligibility for a loan or make the terms (such as the interest rate or loan-to-value ratio) less favorable.

Understanding the pros and cons of asset-based loans will help you make informed choices. Considering these points can help determine if this is the best financing option for your next venture.

Private Capital Investors: The best source for asset-based mortgages in Florida

Our in-house experts at Private Capital Investors have extensive knowledge and industry experience in asset-based mortgages. We offer tailored solutions to fit your unique financial needs, no matter the commercial real estate property.

We offer personalized asset-based loans for your financial situation, including working capital, property improvements, debt consolidation, and refinancing.

At Private Capital Investors, we can help you secure asset-based loans from $1 million to $50 million with a minimum credit score of 650. We make qualifying easier without tax returns, checking account statements, and W-2s.

For this reason, many commercial real estate investors turn to us to get these loans when they need help qualifying for bank loans or showing supporting documentation.

As verified direct lenders, we are qualified to offer flexible loan terms on your asset-based mortgage. Our team will work closely with you to understand your unique situation and recommend the ideal financing that aligns with your needs.

We will help you find loans with rates as low as 5.99% and ensure approval within 24-48 hours. Additionally, we guarantee funding in as little as 14 days.

Private Capital Investors is a well-known and established commercial real estate direct mortgage lender. We have a vast network of private stated-income CRE lenders in Miami and the rest of Florida, ensuring these loans are accessible to you.

Additionally, we can help borrowers secure asset-based commercial real estate loans in Dallas, Denver, Houston, Phoenix, and Massachusetts.

Request a loan today or ask for more details about our asset-based mortgages in Florida. Email info@privatecapitalinvestors.com or call 972-865-6206 to speak to our experts.

Want to learn more? Get in touch with us today.

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