Just funded: $2.2M cash out refinance for tech founder
Location: Marin County, CA
Property type: Luxury single family residence
Occupancy: Owner occupied
Property value: $8.75M
Loan amount: $2.2M
Challenge: Client is a veteran founder in technology, currently working on a new startup venture. Greater than 25% share of company ownership generally requires using business tax return income + documented personal income. Company has raised significant VC funding, but is not yet profitable, so tax return income/business bank statements/P&L actually shows a loss. Although client has been highly successful over many years in the space and had accumulated significant wealth and a luxury home, he had very little documented income that could be used to qualify for the loan amount he was seeking.
Solution: By using an asset depletion loan, we were able to use approximately $3M of documented liquid assets (stock, mutual funds, checking, retirement, and crypto*) to qualify for a $2,200,000 loan amount, without any other income being considered. Although client was initially seeking $1.5M and had shopped at multiple mortgage lenders for a suitable solution, Exception Lending was able to qualify borrower for a 50% higher loan amount, at a rate very similar to full-documentation loans.
*cryptocurrency can be used to qualify for asset depletion loans and many other mortgage types, but must be moved converted to cash or equities, and moved to a brokerage or bank account, prior to final approval.
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