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đ§ Liquidity Is King: Why Cash Still Beats Credit in 2025 đŚ
đ¸ Cash Rules Everything: How Liquidity Wins Over Credit in Mortgage Lending đ°
In mortgage lending, liquidityâyour access to cashâremains the most powerful financial tool in your arsenal. While credit can open doors, cash gives you leverage, stability, and control in a market where speed and flexibility often determine success.
When markets shift or interest rates fluctuate, borrowers with liquid assets are in a stronger position. Lenders see cash as proof of financial discipline and lower risk, allowing for better terms and faster approvals. Whether youâre refinancing, purchasing, or investing, liquidity improves your debt-to-income ratio (DTI) and net worth position, both critical in underwriting decisions.
Credit represents potential borrowing powerâbut itâs not always dependable. Cash, on the other hand, represents immediate capability. A borrower with strong liquidity can:
¡Act quickly when investment opportunities arise.
¡Secure better interest rates and lower closing costs.
¡Negotiate more confidently with sellers or lenders.
This is especially true in competitive real estate markets, where âcash-readyâ buyers dominate multiple-offer situations.
At Medallion Funds, we see liquidity as more than just savingsâitâs a buffer against volatility. Even investors using leverage through DSCR loans or bridge financing benefit from healthy reserves. Liquidity gives you optionsâwhether to fund repairs, bridge a vacancy, or refinance when rates shift.
In todayâs credit-driven economy, cash still wears the crown. Building and maintaining liquidity is the surest way to strengthen your financial foundation, reduce stress during underwriting, and take advantage of emerging opportunities in real estate.
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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory

Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....

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Copyright Š2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright Š 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/

Copyright Š2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/