If you own securities (stocks, bonds, mutual funds, etc.) and are thinking of purchasing a home but don’t qualify for traditional manners of financing, you might consider a stock loan. With this type of loan, the only factor in qualifying for the loan is the quality and number of your securities. 

In addition, because the securities are the guarantee for the loan, you may have average or even very poor credit and still qualify for a stock loan.  

In reality, a stock secured loan has many advantages associated to it:    

 Fast approval – We can let you know if you qualify within 24 hours 

  

 Fat closing – Once the paperwork is completed, you could have the money deposited in your bank within 3 to 5 days    

 

 Below market interest rates – Current applied rates vary between 2 1/2% and 4 1/2%    

 

 High loan values – Depending on the quality of the security, you may get up to 80% loan-to-value ratio    

 

 Non-recourse loan – There is no personal responsibility in this type of loan. If you default on the loan, the lender can not go after your other assets or report you to the credit agencies   

 

 Flexible terms at maturity – You can renew, refinance or pay off the loan.   

Because the normal duration of a equity based loan varies between 3 and 10 years, you have sufficient time to repair your credit if necessary or obtain another kind of financing. 

Please let us know if you need more information about how a stock based loan works. We are here to help you in any way we possibly can.