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Discount Pricing  (707) 888-1464

Vashon Mortgage LLC  &  Collen & Associates

Asset Based Loans

With Asset-Based loans, often called asset depletion or asset utilization loans, a borrower’s income is calculated as a “borrowing base” percentage of the assets’ value. That base is determined by the lender, but can be 70-90% of retirement and investment accounts and 100% of liquid assets.

An asset-based SOFR loan is a valuable tool that can be used by high-net worth individuals to obtain funding for a new property purchase without having to show proof of income. In addition to this benefit, this type of loan has an interest rate that adjusts with the SOFR rate, which allows those with significant assets to potentially capitalize on lower interest rates without having to refinance.

The Secured Overnight Financing Rate is an index that calculates a weighted average of the interest rates that major financial institutions charge for overnight loans. When a mortgage is tied to this index, it is possible to get a mortgage rate that will automatically adjust to the 30-day average of the SOFR index. 

Vashon Mortgage – NMLS #2431410  &  Collen & Associates CA DRE #01452367

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Randal Collen    MLO #2386273  &  DRE #01452367

PO Box 452, Vashon WA 98070  (707) 888-1464     Privacy Policy